SpaceX Plans $24B Gas Power Plant and Supercomputer at Starbase as Musk Moves to Own Its Energy
SpaceX would build, own and operate both facilities on a 444-acre site, and is also hiring gas traders and planning a separate plant for a chip fab with Tesla.
SpaceX ($SPCX) plans an initial $24 billion investment in a gas-fired power plant and a supercomputing data center at Starbase, Texas, according to a city public hearing notice. SpaceX would build, own and operate both facilities. Starbase officials will consider a tax abatement and a development agreement for the project on Dec. 9, and the notice does not approve either one.
What SpaceX proposed
| Item | Details |
|---|---|
| Project | A gas-fired power plant and a "super-compute facility" that SpaceX proposes to construct, own and operate |
| Cost | About $24B in estimated capital investment for the initial phases, which could be expanded later |
| Site | About 444 acres within Starbase city limits in Cameron County, east of Brownsville, between Boca Chica Boulevard and the Port of Brownsville |
| Incentives | A property tax abatement under Chapter 312 of the Texas Tax Code and an economic development agreement under Chapter 380 of the Texas Local Government Code |
| Next step | A public hearing before the Starbase city commission on Dec. 9, 2026, at 7 p.m. |
| Not disclosed | The abatement percentage and length, chip suppliers, computing capacity, jobs and a construction schedule |
Reports citing a separate air-permit application put the plant at 35 gas turbines and about 748 megawatts, but the city notice does not state those figures. The project was first reported by Gateway to Mars.
Why SpaceX wants its own gas
- Vertical integration. Investing.com reported that Elon Musk is moving to control SpaceX's natural gas supply chain, since gas is the main fuel data center developers use for power.
- Rocket fuel. SpaceX also plans to use a purified, super-chilled form of the gas to fuel some launches. Starship runs on methane and liquid oxygen, and methane is the main component of natural gas.
- Florida pipeline. In September, SpaceX proposed a pipeline in Florida to carry gas to Starship rockets at Cape Canaveral.
- Trading desk. SpaceX is hiring gas traders in Starbase and Cape Canaveral, which would reduce its reliance on outside logistics firms. Bloomberg reported in August that the company was looking for a trader to build and lead a desk for its own fuel and power needs.
- Own pipelines and drilling. SpaceX executive Gwynne Shotwell told CNBC in June that the company plans its own gas pipelines and is considering drilling for gas, according to The Next Web.
The Tesla chip fab
SpaceX also plans a separate gas-fired power plant for a large semiconductor manufacturing facility it is developing with Tesla ($TSLA) in Grimes County, outside Houston. The Next Web reported that Musk broke ground on the roughly $16.8B fab in early August.
The regulatory and political backdrop
CoinDesk reported that Texas Gov. Greg Abbott ordered a pause on Aug. 3 on new data centers moving through the state grid operator's connection process, pending a statewide audit. Democrat Gina Hinojosa, who campaigned against AI data centers, won the governor's race on Nov. 3. CoinDesk said it is unclear whether building its own plant will let SpaceX avoid the grid-connection hurdle.
Shares
| Stock | Price | Change |
|---|---|---|
| SpaceX (SPCX) | $141.48 | +5.37% (+$7.21) |
| Tesla (TSLA) | $378.29 | +5.60% (+$20.07) |
Prices are as of about 2:31 p.m. ET Monday. SpaceX has a market value of $1.92T and trades about 37% below its 52-week high of $225.64. Both stocks rose Monday, and the quotes do not show whether the gains were tied to this news.
What to watch
- The Dec. 9 hearing. Whether the Starbase commission approves the abatement and development agreement, and on what terms.
- Project details. Whether SpaceX discloses computing capacity, chip suppliers, jobs and a schedule.
- Permits and grid rules. How state air-permit reviews and the data-center connection pause affect the plan.
- Gas supply. Whether the Florida pipeline and other gas infrastructure move forward, and how much gas SpaceX ends up trading.
- Related coverage. See our Barclays and SpaceX carrier report, the SpaceX wireless buildout story and the Google and Crusoe report.
Sources: The City of Starbase public hearing notice, with reporting from Investing.com, CoinDesk, Drive Tesla Canada, The Next Web and Bloomberg. This article is informational only and is not investment advice.
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