SpaceX Proposes $24 Billion Gas-Powered AI Supercomputer in Starbase, Texas, Facing Regulatory Headwinds
SpaceX plans a 10GW gas-powered AI data center in its company town of Starbase, aiming to bypass local opposition but facing potential blocks from the incoming Texas governor.
According to Tom's Hardware, SpaceX has posted a notice for a public hearing in Starbase, Texas, proposing the construction of a gas-fired power plant and supercomputing facility with an initial cost of $24 billion. The project aims for 10 gigawatts of compute capacity, part of SpaceX's broader goal to build 10GW of compute in 2027 alone.
Starbase, home to SpaceX's Starship rocket program, is largely a company town where land is owned by SpaceX and residents are primarily employees. This structure is seen as a way to reduce the local resistance that plagued SpaceX's Colossus I and II data centers near the Mississippi-Tennessee border, which faced lawsuits over pollution from gas turbines.
However, the plan faces new political challenges. Bloomberg reports that incoming Texas Governor Gina Hinojosa campaigned on blocking new data center approvals until stronger protections are enacted. Following Democratic victories in the Texas midterms, Business Insider noted that shares in both SpaceX and Tesla dropped more than 5%, reflecting concerns about increased regulatory scrutiny for companies headquartered in the state.
SpaceX stated that the $24 billion outlay covers only the "initial phases" and could include future expansions. Beyond terrestrial ambitions, Elon Musk has also submitted a proposal to the FCC for a million-satellite orbital data center system, recently posting on X that space-based data centers look "pretty appealing right now."