SpaceX plans to invest $74 billion in two new data centers, committing $24 billion to Texas and $50 billion to Arizona to expand its artificial intelligence computing power, The Hill reported.
The massive infrastructure push comes as data centers face intense political scrutiny. Governor-elect Gina Hinojosa campaigned against rapid data center expansion, while outgoing Governor Greg Abbott announced a statewide audit and paused new approvals.
SpaceX’s Texas project will sit on 444 acres of land near the Starbase rocket site in the Rio Grande Valley, The New York Times reported.
The Texas campus will generate its own electricity, avoiding the public grid through a facility that includes 35 gas turbines producing roughly 748 megawatts, according to Autonocion.
The Texas project follows a local de-annexation request by SpaceX that circumvented a 90-day data center moratorium enacted by the city of Brownsville, The Texas Tribune reported. Starbase commissioners scheduled a public hearing for December to review the gas-fired power plant and super-compute facility.
Local Jobs and Environmental Concerns
The Texas installation has already created more than 3,000 construction jobs, with more than 500 permanent positions expected once running, Autonocion reported. In Cochise County, Arizona, the $50 billion campus will generate 5,500 construction jobs and 1,000 permanent jobs, according to The New York Times. Local reaction remains divided. Some residents praise the economic growth.
“There’s a lot of people that need jobs in our community and SpaceX has contributed to those jobs,” Janie Melendez, a Brownsville resident and school teacher, told The Texas Tribune.
Environmental groups have raised alarms about the industrial footprint. The South Texas Environmental Justice Network announced plans to protest the project, citing concerns over air pollution, water depletion, and potential impacts on local energy bills.
SpaceX defended the investments in a public statement.
“These investments will expand local tax bases, generate substantial new revenue for schools and public services, and create economic opportunities that extend far beyond the facilities themselves,” The Hill reported SpaceX stating.
“Since SpaceX moved in, my home has tripled in value,” Janie Melendez, a Brownsville resident and school teacher, said.
Greg Abbott is still approving data centers in Texas despite his election year “pause.” That’s Abbott’s playbook: he sells us out and then lies about it. pic.twitter.com/ozFasjNs3W
Company pledges water supply expansion and uses dry cooling
The Arizona site in Cochise County will use dry cooling to avoid industrial groundwater consumption and will work with local electric cooperatives to potentially lower utility bills, The Hill reported. In Texas, the company pledged $220 million to expand the water supply in nearby Brownsville.
SpaceX’s AI business has grown quickly by leasing computing power to companies like Anthropic and Google. Capital expenditures reached $19.6 billion in the third quarter, while the company closed $40 billion in debt financing to fund the chips needed for its data centers.
Questions About Starbase Infrastructure
Why is SpaceX building its own power plant in Texas?
The Texas campus will generate its own electricity using 35 gas turbines to avoid drawing from the public grid, preventing competition with local homes and businesses for power, according to AutoNotion.
What regulatory approvals are still pending for the projects?
The Texas Commission on Environmental Quality lists SpaceX’s Boca Chica Facility registration as pending, and the Arizona project still requires approval from Cochise County, Autonocion and The New York Times reported.
More on Texas
SpaceX has just officially announced plans to invest more than $74 billion to build two massive AI supercomputing facilities in Texas and Arizona. • $24 billion facility near Starbase, Texas • $50 billion campus in Cochise County, Arizona • More than 10,000 construction jobs… pic.twitter.com/hXDLuAArVA
Development of the Starbase supercompute site is creating an opportunity to address decades of environmental neglect. Portions of the property were used for unauthorized dumping dating back to the 1960s. We're undertaking cleanup efforts to remove decades of accumulated debris,… pic.twitter.com/XNNkiJqp0I
SpaceX has just unveiled a massive new $50 billion Supercomputing Campus that they want to build in Cochise County, Arizona. All info: • Up to 6 GW across the 9 supercomputing buildings • Construction starts 2027 • Size of each supercomputing building: ~493,000 square feet.… pic.twitter.com/UOuoOWJXZe
Keep reading