SpaceX plans Texas data center expansion to boost AI computing capacity beyond Memphis hub

SpaceX Expands AI Computing Footprint with New Texas Data Center

SpaceX is preparing to build at least one new large-scale Texas data center, according to a report from The Information citing people familiar with the matter 1

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. The expansion would significantly increase the company's AI computing capacity beyond its existing Memphis-area hub, where it currently operates two data centers with approximately 1 gigawatt of compute capacity 1

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Ground-Up Data Centers Target Scale Matching Tennessee Operations

SpaceXAI, the entity formed after SpaceX absorbed Elon Musk's artificial intelligence startup xAI in February, has explored several sites in Texas and is considering building multiple facilities from the ground up 3

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. Through these efforts, the company aims to build facilities that match or exceed the scale of its presence in Tennessee, where it operates its Colossus data centers with access to hundreds of thousands of NVIDIA's latest AI GPUs .

The move to expand data center operations in Texas, where SpaceX is headquartered, positions the company to diversify its computing infrastructure while supporting its growing roster of AI clients. SpaceXAI has entered into lucrative agreements with major AI players including Anthropic, Google, and Reflection AI to provide computing capacity 3

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. The deal with Google alone allows the firm to earn $920 million a month to provide access to 110,000 GPUs through 2029, while the agreement with Anthropic grants the lab access to the entire Colossus 1 facility 3

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Gigasat Facility in Texas Advances Space-Based AI Computing Vision

Beyond terrestrial expansion, SpaceX is simultaneously building an 11 million-square-foot Gigasat facility in Bastrop, Texas, dedicated to manufacturing orbiting AI data centers 2

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. This ambitious project aims to leverage solar-powered space-based compute to reduce reliance on terrestrial power capacity 2

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. The company has developed plans for its AI satellite called the AI1, a spacecraft capable of delivering 150 kilowatts in peak compute payload that will be manufactured at the Gigasat facility 3

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As part of its IPO, SpaceX marketed itself as a data center company with the capability to build computational facilities in space 3

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. The firm has requested the Federal Communications Commission (FCC) to allow it to launch one million satellites with orbital computing capacity to harness solar power and meet AI's intensive computational needs . Morgan Stanley projects that SpaceX's compute cost in orbit could reach $6.5 per Watt in 2031, potentially undercutting the $6.8 per Watt cost of terrestrial data centers based on NVIDIA's Blackwell AI chips .

Dual Strategy Positions SpaceX for Terrestrial and Space-Based AI Infrastructure

The parallel development of terrestrial and space-based AI computing infrastructure signals SpaceX's commitment to dominating multiple segments of the AI infrastructure market. While the company continues testing its Starship Super Heavy lift rocket and maintains its Falcon 9 launch schedule for Starlink satellites 2

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, the new Texas facilities will provide immediate AI computing capacity to serve existing clients and attract new partnerships. SpaceX stock gained 3% following the announcement of its first earnings report scheduled for August 4 after its record IPO 2

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