- More than $24 billion planned at Starbase, roughly $50 billion in Cochise County
- Starbase facility will generate its own power
- The Potomac Officers Club will convene its 2027 Artificial Intelligence Summit on March 18
SpaceX plans to spend more than $74 billion to build two supercomputing campuses, one at Starbase in Texas’ Rio Grande Valley and another in Cochise County, Arizona.
The company said Thursday it will invest more than $24 billion in the Texas facility, located on company-owned land near the Port of Brownsville and the city landfill. Designed to train frontier computing systems, the facility will support advances in national security, advanced manufacturing, emergency response and medical research, as well as technology testing for space-based computing. Its construction has generated more than 3,000 jobs, with more than 500 permanent positions expected once the site opens.
The Arizona campus represents an estimated $50 billion investment and is projected to generate roughly 5,500 construction jobs and 1,000 permanent roles.
The Potomac Officers Club will convene its 2027 Artificial Intelligence Summit on March 18, bringing together government and industry leaders to examine the deployment of AI across federal missions. Register now.
How Will the SpaceX Supercomputing Facilities Get Power & Water?
Rather than drawing power from the public grid, the Starbase site will generate its own electricity, a move SpaceX said prevents its operations from competing with local homes and businesses for capacity or shifting generation costs onto existing ratepayers. The site’s power systems will incorporate emissions controls and continuous monitoring designed to meet federal and state air quality standards.
A public hearing notice reviewed by Reuters described the project as a gas-fired power plant paired with the compute facility, with $24 billion covering initial phases that may proceed in stages and could expand later. Generating its own power would allow SpaceX to bypass a multiyear wait to connect to the Texas grid. To fuel the site, SpaceX affiliate Lone Star Mineral Development has filed plans for an 8-mile natural gas pipeline to Starbase slated to enter service by January 2027.
On water, SpaceX has committed $220 million to expand Brownsville and Cameron County infrastructure, with $40 million already provided to the Brownsville Public Utilities Board. The Southmost Regional Water Authority had identified projects that would add roughly 20 million gallons per day independent of the Rio Grande — 8 million through potable reuse and 12 million through expanded brackish groundwater treatment — but faced a funding gap. SpaceX said closing it through conventional financing would have cost ratepayers more than $370 million over 25 years.
According to the company, the project involves no acquisition of water rights or preferential access to supply. Both SpaceX and the city of Starbase will pay standard rates and remain subject to the same usage restrictions as other customers.
The Arizona campus, meanwhile, will use dry cooling with no planned industrial groundwater use or new wells. SpaceX said it is working with local electric cooperatives on a project that could cut members’ electricity bills by up to 20 percent.
What Is SpaceX Asking Local Governments For?
SpaceX has applied for a property tax abatement at Starbase. The Starbase City Commission will consider it alongside a related economic development agreement at a Dec. 9 public meeting, according to the hearing notice.
The company argued that the structure is necessary because computing equipment depreciates quickly, causing a spike in taxable value followed by steep declines that complicate local governments’ budgeting. It said an abatement paired with negotiated payments delivers steadier revenue than a temporary assessment increase.
What Is the Climate for Data Center Projects?
The investment announcement was made as public sentiment toward data centers has shifted. Pew Research Center found 54 percent of Americans now say data centers are mostly bad for the environment, up from 39 percent in January. Pew surveyed 10,548 adults between July 20 and Aug. 9.
Voters rejected data center projects in 40 of 41 local ballot measures, Reuters reported, and Democrats took control of Congress and the Texas governor’s office in the midterms, some having campaigned on pausing new data center projects.
How Does the Investment Fit SpaceX’s Other Work?
SpaceX has invested more than $15 billion in Starship and related Starbase infrastructure, creating nearly 5,000 jobs, with Brownsville reporting close to $100 million in launch-related tourism.
The company bought Elon Musk’s xAI earlier this year and reported a 161 percent revenue increase and a ninefold rise in AI revenue in its third quarter, with SpaceX renting computing capacity to customers, including Google and Anthropic.
Musk, a previous Wash100 Award winner, signed the White House accord on artificial intelligence in September alongside leaders from Google, Anthropic, Meta, OpenAI and NVIDIA, committing to safety controls and audits for frontier models.
