The Daily Dig
SpaceX is planning a gas-fired power plant and super-compute facility in Starbase, Texas, with an estimated price tag of roughly $24 billion. The plan surfaced in a public hearing notice tied to the company’s request for a property tax abatement.
Abate Expectations
The Starbase City Commission will consider that abatement at a public meeting on December 9, 2026. A related economic development agreement is also on the agenda.
The $24 billion figure covers only the project’s initial phases. According to the notice, the work may happen in multiple phases and could include future expansions.
SpaceX would construct, own and operate the facilities themselves. That would put the project among the largest private investments in the Rio Grande Valley.
Power Play
The power plant carries a practical upside. Generating their own electricity could let SpaceX avoid a wait that can stretch for years to connect to Texas’ main power grid.
Several key details are still missing. The notice didn’t say how large the abatement would be or how long it would last. It also gave no generating capacity for the plant and no scale for the computing operation.
Pipe Dreams
Separate gas infrastructure at Starbase is already on paper. SpaceX affiliate Lone Star Mineral Development has filed plans for an 8-mile natural gas pipeline to Starbase called Starpipe.
Starpipe is scheduled to enter service by January 2027. Filings Reuters reviewed in June 2026 show it will feed a planned plant that turns gas into liquid methane for Starship rockets. That plant is separate from the proposed power plant.
Snapshot:
Project: Gas-fired power plant and super-compute facility
Developer/Owner/Operator: SpaceX
Location: Starbase, Texas
Region: Rio Grande Valley
Sector: Power generation / data center
Estimated Capital Investment: About $24 billion (initial phases)
Phasing: Multiple phases possible, with possible future expansions
Status: Property tax abatement application filed
Next Step: Starbase City Commission public meeting, December 9, 2026 (abatement and economic development agreement)
Abatement Size/Duration: Not disclosed
Generating Capacity: Not disclosed
Compute Scale: Not disclosed
Related Infrastructure: Starpipe, 8-mile natural gas pipeline to Starbase, filed by SpaceX affiliate Lone Star Mineral Development
Starpipe Service Date: Scheduled by January 2027
Starpipe Purpose: Feeds planned plant converting gas to liquid methane for Starship rockets
Corporate Context: SpaceX acquired xAI in 2026; rents computing capacity to Google, Anthropic and others; reported a 161% jump in Q3 revenue in October 2026
Market Context: Voters rejected data centers in 40 of 41 local ballot measures
First Reported By: Bloomberg News
TheJobWalk Thoughts
SpaceX would build, own and operate this themselves, and no GC has been publicly named. Until that changes, the owner’s team is the most direct point of contact. Subs and suppliers should build those relationships early rather than wait for a bid list.
Skipping the grid queue trades it for an equipment queue. Large generation gear carries long lead times, and a gas plant still needs its own permits. Suppliers on that side should start schedule conversations early.
December 9 is the next public milestone. Voters rejected data centers in 40 of 41 local ballot measures, per Reuters, so approval is worth tracking rather than assuming.
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