SpaceX is proposing a $24 billion development in Texas that would combine an artificial intelligence supercomputer with a dedicated natural gas power plant. The project’s estimated cost is approximately 17 times the current value of the company’s Bitcoin holdings.
SpaceX, which maintains a substantial Bitcoin treasury and went public in June through what was described as the largest initial public offering in history, is seeking to develop and operate its own AI computing infrastructure in Texas.
The proposed development would be located in Starbase, a Texas city in Cameron County that serves as the home of SpaceX’s primary rocket manufacturing facility and launch operations. According to a city notice, the project would feature a natural gas-fired electricity plant alongside a data center described as a “super-compute facility.”
The investment is particularly notable from a cryptocurrency perspective because its $24 billion price tag significantly exceeds SpaceX’s Bitcoin exposure. The proposed development is worth roughly 17 times the value of the company’s BTC reserves. Bitcointreasuries.net data showed that SpaceX held 18,712 Bitcoin, valued at approximately $1.39 billion at the time of writing.
The planned power facility would reportedly feature 35 gas turbines with a combined electricity generation capacity of 748 megawatts. This approach differs from the traditional model used by many AI data centers, which typically depend on electricity supplied through existing utility networks.
“SpaceX proposes to construct, own, and operate a gas-fired power plant and super-compute facility,” the official City Notice stated.
The proposal also reflects a wider trend among technology companies seeking direct access to electricity for their expanding AI operations. Anthropic recently reached an agreement to purchase 1.7 gigawatts of gas-powered generation equipment for $3.4 billion. For comparison, one gigawatt equals 1,000 megawatts.
However, the city notice does not explain why SpaceX intends to develop a dedicated power facility rather than rely on the existing electricity grid.
The growing connection between artificial intelligence infrastructure and natural gas has attracted attention across the energy industry.
“The AI boom is becoming a gas story,” the Global Commodity Trader Index, a benchmark tracking institutional commodity trading firms, wrote on X.
The organization noted that technology companies are increasingly unwilling to wait for traditional utility providers to expand electricity capacity. Instead, they are investing directly in power generation, securing equipment and energy supplies to support their data center operations. This shift could create sustained demand for natural gas producers, turbine manufacturers and pipeline operators.
SpaceX Expands Its AI Ambitions
SpaceX’s involvement in artificial intelligence infrastructure has expanded significantly in recent months.
In February, Elon Musk combined his AI company, xAI, with SpaceX through a stock-based transaction that valued the merged business at approximately $1.25 trillion.
The proposed Texas supercomputer facility represents another major step in the company’s efforts to expand its AI computing capabilities.
SpaceX Seeks Tax Incentives Amid Regulatory Uncertainty
Alongside the development proposal, SpaceX is seeking property tax incentives from the City of Starbase. The city commission is scheduled to hold a public hearing on the request on December 9.
The proposed tax abatement would reduce the company’s property tax obligations and provide access to the Cameron County Enterprise Zone for the planned development.
However, the project could encounter political and regulatory challenges as Texas reassesses the rapid expansion of energy-intensive AI data centers.
Democrat Gina Hinojosa won the Texas gubernatorial election on November 3, defeating Republican incumbent Greg Abbott. During her campaign, Hinojosa criticized the growing number of AI data centers and accused Abbott of allowing these power-hungry facilities to expand without sufficient oversight.
Abbott had previously ordered a temporary pause on August 3, preventing additional data center projects from advancing through the state’s grid operator connection process until regulators complete an audit.
The statewide review examines several issues, including on-site electricity generation and the potential impact of large data centers on local water resources and surrounding communities, regardless of where their electricity originates.
It remains uncertain whether SpaceX’s plan to generate its own electricity through a dedicated natural gas facility will allow the company to avoid some of the regulatory restrictions affecting other data center developments in Texas.
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