SpaceX’s $24B Texas Supercomputer Plan Includes a Dedicated Gas Plant

SpaceX is planning a $24 billion AI supercomputing complex in Texas, featuring a dedicated natural gas power plant to supply electricity to its computing operations. The proposed investment is approximately 17 times the value of the company’s Bitcoin holdings, demonstrating the enormous financial commitment behind its AI expansion.

The Elon Musk-founded company intends to establish the project in Starbase, Texas, where its main rocket manufacturing facility and launch operations are located. SpaceX, which maintains a sizable Bitcoin treasury, also made history with its public listing in June, described as the largest IPO ever.

A notice published by the City of Starbase outlines plans for a natural gas-fired power generation facility alongside a data center identified as a “super-compute facility.”

The proposed $24 billion development is particularly notable given SpaceX’s exposure to the cryptocurrency market. According to Bitcointreasuries.net, the company held 18,712 BTC worth around $1.39 billion at the time of writing. This means the planned investment is approximately 17 times the value of its Bitcoin reserves.

The proposed power station would reportedly feature 35 turbines capable of generating a total of 748 megawatts. By developing its own electricity infrastructure, SpaceX would reduce its dependence on conventional utility networks, which supply power to most existing AI data centers.

The municipal notice specifically states that SpaceX intends to construct and independently operate both the gas-fired power facility and the supercomputing center.

The strategy comes as technology companies increasingly look for alternative ways to meet the growing electricity requirements of artificial intelligence. Anthropic recently agreed to a $3.4 billion deal involving 1.7 gigawatts of gas-powered generation equipment, reflecting the industry’s growing interest in securing dedicated energy supplies.

SpaceX’s filing, however, does not clarify why the company has chosen to develop its own power generation capacity rather than rely on the existing electricity grid.

The trend is also attracting attention from energy market participants. The Global Commodity Trader Index, which tracks institutional commodity trading firms, recently pointed to the growing dependence of AI infrastructure on natural gas.

The organization noted that technology companies are increasingly taking direct control of electricity generation instead of waiting for utility providers to deliver additional capacity. This could support sustained demand for gas producers, pipeline operators and turbine manufacturers as new data centers come online.

SpaceX Expands Its AI Infrastructure Strategy

The Texas proposal follows SpaceX’s growing involvement in the artificial intelligence industry.

In February, Elon Musk merged his AI business, xAI, with SpaceX through a stock-based transaction that placed the combined company’s valuation at approximately $1.25 trillion.

The planned supercomputing development would further expand the company’s AI operations by combining computing capacity with an independent source of electricity.

Tax Relief Request and Texas Regulatory Concerns

SpaceX is also pursuing property tax incentives from the City of Starbase to support the proposed development. The request includes access to the Cameron County Enterprise Zone, which could lower the company’s property tax burden.

The city commission is expected to discuss the proposed tax abatement during a public hearing scheduled for December 9.

However, the project comes at a time when Texas is facing increasing scrutiny over the expansion of energy-intensive data centers.

Democrat Gina Hinojosa defeated Republican incumbent Greg Abbott in the November 3 gubernatorial election. During her campaign, she criticized the rapid growth of AI data centers and raised concerns about their impact on electricity demand.

Abbott had already introduced a temporary suspension on August 3, preventing additional data center projects from advancing through the state’s grid connection process until regulators completed an audit.

The review examines facilities’ on-site power generation arrangements and evaluates their potential effects on local water resources and surrounding communities, regardless of where their electricity originates.

As a result, SpaceX’s plan to operate a dedicated natural gas power plant could attract additional regulatory attention. Whether generating its own electricity will help the company navigate Texas’ restrictions on new data center developments remains to be determined.