SpaceX Plans Multi-Billion Dollar AI Data Center and Power Plant in Starbase
SpaceX is moving beyond rocket launches and into the massive-scale energy and computing infrastructure required for the AI era. According to public disclosures from local authorities regarding tax incentives, the company plans to invest approximately $24 billion into the first phases of a new AI data center and a dedicated power plant located in Starbase, Texas.
The proposed site is situated east of Brownsville in Cameron County, positioned near SpaceX's existing production and launch facilities. The project area spans roughly 180 hectares, located between Boca Chica Boulevard and the Port of Brownsville. This location is deeply integrated with the company's operations in the newly established city of Starbase, which serves as a primary hub for the development and manufacturing of Starship components.
Energy Autonomy and Infrastructure Ambitions
A notable departure from standard data center developments is the plan for on-site energy generation. SpaceX intends to build and operate a gas-fired power plant specifically to support the data center's massive power requirements. While the exact electrical output of this plant remains undisclosed in the municipal announcement, the move highlights the growing trend of hyperscalers seeking direct control over their energy supply to mitigate grid constraints.
Scale and Uncertainties
Despite the staggering $24 billion figure, several technical specifics remain unconfirmed. The announcement does not specify the total capacity of the data center, the number of server racks, or the specific AI accelerators (such as GPUs or custom silicon) that will be deployed. Furthermore, the $24 billion investment covers only the initial stages of the project and does not represent a final cost ceiling, as the facility could be expanded in later phases.
This expansion aligns with SpaceX's aggressive scaling of computational power. The company already operates significant AI computing facilities in the Tennessee-Mississippi border region. As of late September, SpaceX's nominal AI computing capacity was reported at approximately 1.7 GW. This is expected to rise to between 2.5 and 3 GW by the end of the year, with ambitious expansion targets of up to 10 GW projected for the end of 2027.
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