SpaceX plans $24 billion power plant in Starbase, Texas

SpaceX plans to build, own and operate a gas-fired power plant and super-compute facility in Starbase, Texas, according to a public hearing notice on the city's website.

The initial phase of the project carries an estimated investment of $24 billion. The city commissioner will review approval of a tax abatement and development agreement at a December 9 meeting.

The proposal shows CEO Elon Musk is working to vertically integrate SpaceX's value chain for natural gas, the primary fuel data center developers use to power facilities. SpaceX also plans to use a super-chilled and purified form of the gas to fuel some rocket launches.

In September, SpaceX proposed building a pipeline in Florida to transport gas to its Starship rockets in Cape Canaveral. The company has been hiring gas traders in Starbase and Cape Canaveral to support its growing fuel and power needs, moving away from reliance on external logistics companies.

Starbase, incorporated in 2025, is home to several hundred SpaceX employees and their families. The proposed project sits within the city limits of Starbase on a 444-acre tract east of Brownsville, according to the public notice.

Rising power needs from data centers and new factories have increased demand for gas plants. SpaceX also plans to build a gas-fired power plant to support the semiconductor manufacturing facility it is developing in Grimes County, outside of Houston, with Tesla Inc.