SpaceX plans $24 billion power plant in Starbase, Texas

SpaceX is set to invest $24 billion in constructing a gas-fired power plant and super-compute facility at its Starbase location in Texas, according to a public hearing notice from the city's website. The initial phase of the project is expected to see city commissioners review the approval of a tax abatement and development agreement during a meeting on December 9.

This initiative by SpaceX signifies a move towards vertical integration of its value chain for natural gas, the primary fuel used by data centers. Additionally, the company plans to utilize a super-chilled and purified form of the gas to fuel select rocket launches. In September, SpaceX had proposed a pipeline in Florida to supply gas to its Starship rockets in Cape Canaveral.

The company has been progressively hiring gas traders in both Starbase and Cape Canaveral to cater to its expanding fuel and power requirements, reducing dependence on external logistics firms. Starbase, incorporated in 2025, currently houses several hundred SpaceX employees and their families. The proposed project is situated within the city limits of Starbase on a 444-acre tract located east of Brownsville.

As power needs from data centers and new manufacturing plants continue to surge, there is a growing demand for gas plants. SpaceX is also planning to construct a similar gas-fired power plant to support its semiconductor manufacturing facility in Grimes County, located outside of Houston, in collaboration with Tesla Inc.