- SpaceX wants 748 megawatts of dedicated power for its Texas computing complex
- 35 gas turbines put SpaceX’s Texas power application under environmental scrutiny
- Texas governor-elect promised moratorium could complicate future data center approvals in the state
SpaceX is seeking regulatory approval to build a natural-gas power facility for its planned $24 billion artificial-intelligence computing complex in Texas.
The application covers 35 natural gas turbines with a combined electricity generation capacity of 748 megawatts (MW).
The project will be located in Starbase, where SpaceX operates its rocket launch facilities, and includes plans for the company to develop and operate both facilities.
SpaceX plans dedicated power generation for its Texas computing facility
The proposed development would allow SpaceX to generate electricity independently rather than rely entirely on connections to Texas’s main power grid.
This could help the company avoid delays associated with securing sufficient grid capacity for its computing operations.
The Starbase City Commission is scheduled to consider a development agreement and proposed property tax incentives on December 9 2026.
The company is also pursuing natural gas infrastructure in Texas and Florida to transport fuel for its Starship rocket program.
According to Bloomberg, SpaceX is exploring another gas-fired power plant near Houston to supply electricity to Terafab, an AI semiconductor complex it plans to develop with Tesla.
The 748 MW application adds another major natural gas generation project to SpaceX’s expanding infrastructure plans.
However, the company will still need to satisfy applicable environmental and development requirements before proceeding with construction.
Hinojosa’s election victory raises uncertainty over future data center approvals
SpaceX’s application comes shortly after Democrat Gina Hinojosa defeated three-term Republican Governor Greg Abbott in the recent US midterm election.
Her campaign included proposals to restrict new data center development due to concerns about their effects on household utility costs.
Hinojosa argued large computing facilities were increasing pressure on electricity and water supplies, particularly in rural communities.
“When I become governor, I will prohibit all approvals for data center construction until a law is passed to protect Texans from data centers,” she said.
Hinojosa also pledged to “eliminate tax incentives for data center construction and require disclosure of electricity and water consumption.”
There are reports that SpaceX is seeking tax incentives and other financial concessions from local authorities, although Hinojosa’s proposed restrictions could complicate those efforts once she assumes office.
Hinojosa is expected to assume office in January 2027, potentially introducing a different regulatory approach to technology infrastructure projects.
Opposition to large computing developments is also emerging in other parts of the United States.
According to regulatory intelligence firm RegLayer, at least 47 major data center construction projects encountered permitting delays or organized opposition from residents during 2026.
The disputes involve concerns about electricity costs, water consumption and the local consequences of accommodating facilities with substantial infrastructure requirements.
SpaceX’s proposed natural gas installation could address some electricity supply constraints, although its emissions and environmental permitting requirements may attract additional scrutiny.
