SpaceX plans $24 billion Texas data center and independent power plant
SpaceX is planning a gas power plant and data center in Starbase, Texas, to bypass national grid bottlenecks. The first construction phase is estimated to cost $24 billion, though political uncertainty in Texas poses a risk.
SpaceX, which acquired Elon Musk’s AI company XAI earlier this year, is planning to build a gas power plant and a large data center in Starbase, Texas. The first construction phase is estimated to cost $24 billion. The project addresses the bottleneck of connecting data centers to existing national power grids, a process that involves long approval and expansion times. SpaceX aims to build its own independent power network to mitigate these delays. The plan faces political uncertainty as Texas is set to elect a Democratic governor, Gina Hinojosa, after the midterms. Hinojosa has stated she will not approve new data centers until new laws are passed, creating potential obstacles for the project. This regulatory risk exists despite XAI’s AI revenue increasing ninefold in the third quarter. The initiative represents a significant shift in how hyperscale AI infrastructure is powered, moving away from reliance on public utilities toward private generation.