SpaceX Plans $24 Billion Data Center and Power Plant in Texas
Tensions expected with Texas’ new governor
Community opposition intensifies across rural areas nationwide
SpaceX said on November 9 (local time) that it plans to build a $24 billion (approximately 32 trillion won) artificial intelligence (AI) data center and its own power plant in Texas. With Gina Hinojosa, elected as Texas's new governor in this midterm election, known as an opponent of data centers, the company appears to be accelerating the project before her term begins.
According to Bloomberg, SpaceX announced in a public hearing notice issued by the City of Starbase, Texas, where its space launch facility is located, that it "plans to build, own and operate a $24 billion supercomputing facility and gas-fired power plant in Starbase." The Starbase City Commission is reportedly scheduled to meet on December 9 to consider whether to approve tax breaks and a development agreement.
The $24 billion construction cost is an early-stage estimate of the investment. SpaceX has applied for a property tax abatement for the project. Building a separate gas-fired power plant would allow the data center to begin operating immediately, without having to wait for approval to connect to Texas's main power grid.
"SpaceX is seeking to vertically integrate its operations through a natural gas-fired power plant," Bloomberg reported. "It is already pursuing plans to build its own pipelines in Texas and Florida to transport gas for Starship rocket fuel, and is also in contact with gas suppliers." SpaceX is also reportedly planning to build a gas-fired power plant on the outskirts of Houston to supply electricity to Terafab, an AI chip complex it is pursuing jointly with Tesla.
Texas-based RGV Business Journal also reported that "SpaceX has applied to Texas environmental authorities for an air emissions permit for a power generation facility with 35 natural gas turbines and a capacity of 748 megawatts (MW)."
SpaceX appears to be hurrying to build a separate gas-fired power plant because of concerns about Hinojosa, an opponent of data centers in U.S. politics. Hinojosa made a pledge to halt all approvals for data center construction one of her key campaign promises in the midterm election, and defeated Greg Abbott, the three-term incumbent Texas governor.
During the election campaign, Hinojosa primarily visited rural areas struggling with soaring water and electricity bills, which she attributed to data center construction. "When I become governor, I will prohibit all approvals for data center construction until a law is passed to protect Texans from data centers," she said. She also pledged to "eliminate tax incentives for data center construction and require disclosure of electricity and water consumption."
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Meanwhile, regulation of AI data centers is becoming an issue not only in Texas but across the United States. According to RegLayer, a U.S. regulatory intelligence firm, at least 47 large data center construction projects in the country this year have faced issues involving opposition from residents and permitting delays.
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