SpaceX plans to build a $24 billion data center and gas-fired power plant in Starbase, Texas, according to a public hearing notice on the city’s website reported by Yahoo Finance.
The proposed development would occupy a 444-acre tract inside city limits east of Brownsville, as detailed by Tech Insider. Starbase commissioners are scheduled to consider a property tax abatement and a related economic development agreement during a meeting on December 9, 2026.
Project Scope and Energy Strategy
The venture involves constructing, owning, and operating both a super-compute facility and a dedicated power plant, per Tech Insider. The initial phases carry an estimated capital investment of roughly $24 billion, according to the municipal filing cited by Yahoo Finance.
Using self-supplied natural gas power allows data center developers to bypass the traditional grid interconnection queue, Yahoo Finance reported. The industrial approach mirrors other company initiatives, including a proposed gas pipeline in Florida intended to supply Starship rockets at Cape Canaveral, alongside a planned gas-fired plant for a semiconductor facility in Grimes County developed with Tesla.
According to Goldman Sachs Research analyzing artificial intelligence power requirements, global electricity needs for data centers are expected to grow by as much as 165% by the end of the decade compared to 2023 levels.
The International Energy Agency projects global power consumption for data infrastructure to climb from 485 terawatt-hours in 2025 to approximately 950 terawatt-hours by 2030, while Department of Energy assessments indicate that such facilities are anticipated to consume between 7% and 12% of total domestic electricity generation by 2028, increasing from roughly 4.4% in 2023.
Natural gas supplied 47.6% of electricity generation within the Electric Reliability Council of Texas network during the third quarter of 2025, according to the Texas Oil and Gas Association’s power report.
Analyticsinsight said that an affiliate, Lone Star Mineral Development, proposed an eight-mile natural gas pipeline named Starpipe to connect supplies directly to Starbase by January 2027.
SpaceX Pays for Infrastructure After Land De-Annexation
The 444-acre site was removed from Brownsville’s jurisdiction in August when city commissioners agreed to de-annex the property, Common Dreams reported. In exchange, SpaceX agreed to contribute up to $220 million toward regional water and wastewater infrastructure through an initial $40 million payment and six quarterly payouts of $30 million.
Before the de-annexation, SpaceX vice president Sheila McCorkle told Brownsville commissioners that the company wanted the land removed to execute infrastructure development “quicker and more economically,” according to Common Dreams. McCorkle also pointed to regional growth and water support in the Lower Rio Grande Valley, where operations are projected to eventually require roughly 2 million gallons of water daily.
Local residents have raised concerns over resource consumption and industrial expansion. “Please pass a full 180-day data center moratorium. And please remember that this is supposed to be a community-led environmental task force,” said Bekah Hinojosa, co-founder of the South Texas Environmental Justice Center, during a November 4 Brownsville City Commission meeting cited by Common Dreams.
“We don’t know what SpaceX is building on the 444 acres. It’s frankly terrifying,” Hinojosa added, per Common Dreams.
Attorney Jacqueline Morales also addressed commissioners, stating, “The moratorium will not make us forget that you de-annexed 444 acres of land to SpaceX, which is now building a data center. This community has been sounding the alarm for months, only for this commission to ignore us and pretend like it knows better,” as reported by Common Dreams.
“There is no middle ground here,” Morales told the commissioners.
Starbase Commissioners Hearing Schedule
KRGV reported that Starbase commissioners are scheduled to evaluate the proposed property tax abatement and economic development agreement at 7 p.m. on December 9 at Starbase City Hall, where the public may attend and speak.
Earlier coverage: Google to Invest $17 Billion in Wyoming Data Center Campus Following Crusoe Sale