Elon Musk's SpaceX Reportedly Plans $24 Billion Gas-Fired Power Plant and AI Data Center In Texas

Elon Musk-led Space Exploration Technologies Corp. (NASDAQ:SPCX) is proposing to build a multi-billion-dollar natural gas-fired power plant and a super compute facility in Starbase, Texas.

$24 Billion Facility

According to a public hearing notice cited by Bloomberg on Monday, the initial phases of the development carry an estimated capital investment of $24 billion, positioning the buildout among the largest private investments in the Rio Grande Valley.

The project may be constructed across multiple phases and could include future expansions, with SpaceX set to construct, own, and operate the infrastructure.

The public notice omitted details regarding the plant’s total power generation capacity, the precise scale of the computing facility, and the duration or dollar value of the requested property tax relief.

The Starbase City Commission will formally review the property tax abatement and a related economic development agreement during a public meeting scheduled for Dec. 9.

SpaceX affiliate Lone Star Mineral Development previously filed plans for an eight-mile natural gas pipeline dubbed “Starpipe,” slated to enter service by January 2027, according to a report by Reuters on Monday. The pipeline will reportedly supply natural gas to a facility engineered to convert gas into liquid methane for Starship rockets.

Elon Musk’s Data Center Goals Face Democrat Threat

Data centers and AI are an integral part of SpaceX’s future business ventures, with CEO Musk recently outlining SpaceX’s $40 billion debt raise to fund its AI compute buildout.

However, uncertainty remains over the compute buildout as the GOP, backed by Musk, suffered a setback in the midterms as the Democratic candidates flipped Texas.

Notably, SpaceX and Tesla are both headquartered in Texas, after the EV giant moved its headquarters to Austin from California in 2021. While both Senator-elect James Talarico (D-Texas) and Governor-elect Gina Hinojosa (D-Texas) have reservations about AI and data centers, both candidates have expressed willingness to work with Musk on AI.

Tesla Targets Solar Manufacturing Boost

Tesla also confirmed it has begun preliminary work to construct a new solar energy manufacturing facility around Houston, Texas. Musk, in a post on the social media platform X, confirmed that the EV giant was committing over $10 billion to the site.

Price Action: SPCX shares were up 0.39% $142.63 during pre-market trading on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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