Company bets on self-generated power amid data center backlash, eyes vertical integration of natural gas supply chain

The SpaceX logo. [Reuters]
The SpaceX logo. [Reuters]

Elon Musk's SpaceX is pursuing plans to build its own gas-fired power plant and supercomputing facility in Texas at an estimated cost of $24 billion.

Bloomberg and Reuters, citing a public hearing notice from Starbase — the Texas city where SpaceX's launch site is located — reported Monday (local time) that SpaceX plans to build, own and operate the facilities itself. The move comes amid growing opposition to data centers across the United States, as the company pushes to secure its own power supply and expand AI computing capacity.

The site spans roughly 1.8 million square meters within Starbase, and the $24 billion figure represents an early-stage investment estimate. Starbase, a company town housing SpaceX's Starship launch facilities and employee residential areas, was incorporated as a city last year. SpaceX has applied for a property tax exemption, and the Starbase city council is set to review the exemption and an economic development agreement at its Dec. 9 meeting.

By building its own power plant on the data center site, SpaceX would avoid waiting years to connect to Texas's main power grid.

SpaceX currently leases computing capacity to clients including Google and Anthropic.

Local outlet RGV Business Journal reported that SpaceX has applied to Texas environmental authorities for air emissions permits covering 35 natural gas turbines and a 748 MW power generation facility.

Bloomberg noted, however, that Texas Governor-elect Gina Hinojosa of the Democratic Party — who made curbing new data center construction a campaign pledge — could pose an obstacle to SpaceX's plans.

Bloomberg also described the project as part of Musk's broader effort to vertically integrate the natural gas value chain.

SpaceX is pursuing construction of its own pipelines to transport gas for Starship rocket fuel in Texas and Florida, and has been directly hiring gas traders. The company also plans to build its own gas-fired power plant at a large semiconductor factory it is developing with Tesla on the outskirts of Houston.


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