SpaceX invests in AI computing campuses
SpaceX announced plans on November 12 to invest more than $74 billion in artificial intelligence computing campuses in Texas and Arizona, expanding its operations beyond rockets and Starlink satellite internet.
According to The Times of India, the company anticipates spending roughly $50 billion on a second campus located in Cochise County, Arizona, while more than $24 billion is slated for a supercomputing facility at its Texas Starbase location.
The AI segment generated more than half of the company’s revenue in the third quarter, driving a profitable quarter with $4.4 billion in net income, AOL reported.
On an earnings call, Elon Musk said annual recurring revenue by the end of 2027 could reach somewhere between $500 billion and a trillion, according to AOL.
Cochise County campus faces local resident opposition
The proposed $50 billion campus in Arizona would create 6,500 jobs, including 5,500 construction positions and 1,000 permanent roles. The project requires approval from Cochise County.
The project has drawn resistance from some residents. Local officials have been urged to deny the permit via a petition signed by 2,400 people, and a public hearing is set for December.
SpaceX said it is working with local electric cooperatives and claimed the facility could reduce electricity bills for cooperative members by up to 20%. The company also stated the facility would use dry cooling and would not rely on industrial groundwater use.
Starbase supercomputing facility and power infrastructure in Texas
SpaceX’s second project is set for its Starbase site in Texas, involving an intended investment of over $24 billion for power infrastructure and a supercomputing facility. A city notice published earlier outlined plans for a gas-fired power plant and supercomputing facility spread across approximately 444 acres.
Rather than using the public grid, SpaceX said that the Texas campus will produce its own electricity. More than 3,000 construction jobs have been created by the project so far, and it is projected to support over 500 permanent positions once it is operational.
On December 9, the Starbase City Commission is set to review a property tax abatement for the project.
SpaceX revenue grew through AI computing division
SpaceX earned $4.4 billion in the third quarter after losing $1.1 billion a year earlier, with revenue growing more than 160% to $14.6 billion, AOL reported. The AI computing division supplied $7.6 billion of that total.
Capex hit $19.6 billion last quarter and could reach $40 billion in the fourth quarter, according to AOL. SpaceX ended the quarter with 1.7 gigawatts of computing and aims for 13 gigawatts by the end of 2027.
Frequently asked questions about the SpaceX AI expansion
What is the total planned investment for the new AI campuses?
SpaceX announced it will invest more than $74 billion across its Texas and Arizona computing campuses.
When is the Texas property tax abatement vote scheduled?
The Starbase City Commission is scheduled to consider a property tax abatement for the Texas project on December 9.
How many permanent jobs will the Arizona facility create?
The proposed Cochise County campus is expected to generate 1,000 permanent positions alongside 5,500 construction jobs.
What is the timeline for the Arizona permit decision?
A public hearing regarding the permit is scheduled for December following a petition carrying 2,400 signatures.