SpaceX is planning a massive $24 billion investment in Starbase, Texas, for a natural gas power station and a supercomputing data center. The project, detailed in a public hearing notice from the City of Starbase, will span approximately 444 acres east of Brownsville. The Starbase City Commission will review the proposal, including a property tax abatement agreement, during a meeting on December 9.
The investment aligns with SpaceX CEO Elon Musk's broader strategy to control the company's natural gas supply chain. Earlier this year, SpaceX proposed a company-owned gas line in Florida and has hired gas traders at both Starbase and Cape Canaveral. The Texas project also supports a chip-making plant SpaceX is developing with Tesla in Grimes County.
However, the project faces potential political hurdles. Texas Gov.-elect Gina Hinojosa, the first Democrat to win the governorship since 1990, campaigned on a moratorium for data centers. While Republicans hold the majority in the Texas Legislature, her election could create challenges for Musk's plans. Additionally, rising electricity costs and environmental concerns have sparked protests against data centers nationwide, including one tied to Musk's companies in Memphis.