SpaceX Seeks Approval for $24 Billion Gas-Powered AI Supercomputer in Starbase Texas

SpaceX Files for Massive Gas-Powered AI Computing Complex in Company Town

SpaceX has submitted an application for regulatory approval to construct a $24 billion AI supercomputer facility in Starbase Texas, the company town that primarily houses SpaceX employees and sits on land owned by the aerospace company1

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. The proposal includes a dedicated natural gas power plant featuring 35 turbines with a combined electricity generation capacity of 748 megawatts to power the AI computing complex2

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. The Starbase City Commission is scheduled to review the development agreement and proposed property tax incentives on December 9, 20262

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Strategic Move to Generate Independent Power and Avoid Grid Constraints

The gas-powered AI supercomputer project represents a strategic shift toward independent energy infrastructure. By generating electricity independently rather than relying entirely on connections to Texas's main power grid, SpaceX aims to avoid delays associated with securing sufficient grid capacity for its computing operations2

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. This approach could prove essential as the company pushes to build 10 gigawatts of compute capacity by 2027 alone1

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. The $24 billion AI center budget covers only the "initial phases of the projects" and could "include future expansions," suggesting SpaceX may invest in additional capacity at the Starbase Texas location going forward1

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Incoming Governor Threatens Regulatory Roadblocks for Data Centers

The timing of SpaceX's application coincides with a significant political shift in Texas. Democrat Gina Hinojosa recently defeated three-term Republican Governor Greg Abbott in the US midterm election, bringing uncertainty to future data center approvals2

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. Hinojosa campaigned on restricting new data centers until the state legislature enacts stronger protections against potential harms from these projects1

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. She explicitly stated, "When I become governor, I will prohibit all approvals for data center construction until a law is passed to protect Texans from data centers"2

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. Hinojosa also pledged to eliminate tax incentives for data center construction and require disclosure of electricity and water consumption, which could complicate SpaceX's efforts to secure financial concessions from local authorities2

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. She is expected to assume office in January 2027, potentially introducing a different regulatory approach to technology infrastructure projects2

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Growing Opposition to Large Computing Facilities Across Multiple States

SpaceX's existing data center projects have already encountered resistance. Elon Musk's company has been developing Colossus I and Colossus II data centers near the Mississippi-Tennessee border, but those projects attracted a lawsuit from area residents aiming to curb pollutants produced by the large number of gas turbines required to power the facilities1

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. According to regulatory intelligence firm RegLayer, at least 47 major data center construction projects encountered permitting delays or organized opposition from residents during 20262

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. The disputes center on concerns about electricity costs, water consumption, and the local consequences of accommodating facilities with substantial infrastructure requirements2

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. Hinojosa argued that large computing facilities were increasing pressure on electricity and water supplies, particularly in rural communities2

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SpaceX Expands Energy Infrastructure Beyond Computing Applications

Beyond the AI computing complex, SpaceX is pursuing natural gas infrastructure in Texas and Florida to transport fuel for its Starship rocket program2

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. The company is also exploring another gas-fired power plant near Houston to supply electricity to Terafab, an AI semiconductor complex it plans to develop with Tesla2

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. Meanwhile, SpaceX continues pursuing ambitious space-based computing initiatives. Elon Musk has laid out plans for a first-generation AI1 compute satellite with a 150kW peak compute payload and submitted a proposal to build a 1-million-satellite Orbital Data Center System to the FCC1

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. In a post-election message on X, Musk suggested that "data centers in space looking pretty appealing right now," hinting that regulatory challenges on Earth could accelerate orbital computing efforts1

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. Watch for how the December 9 hearing unfolds and whether SpaceX adjusts its strategy in response to the changing political landscape in Texas.