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TL;DR
SpaceX said Nov. 12 it is advancing AI computing projects in Starbase, Texas, and Cochise County, Arizona, with more than $74 billion in planned investment. Both projects face local decisions on Dec. 9; key details, including Texas facility capacity and an Arizona electricity arrangement, remain unresolved.
SpaceX said Nov. 12 it is advancing two artificial-intelligence computing projects in Starbase, Texas, and Cochise County, Arizona, describing them as more than $74 billion in planned U.S. investment. The proposals still require local action: Starbase officials are due to consider a property-tax abatement, while Cochise County’s planning and zoning commission is scheduled to hold a hearing on the Arizona campus on Dec. 9.
The Texas proposal calls for an estimated $24 billion initial investment on about 444 acres near the Port of Brownsville. SpaceX says the facility will generate its own electricity rather than draw from the public grid. A Starbase notice describes a gas-fired power plant and supercomputing facility, but does not specify the plant’s capacity or the computing site’s capacity.
Local outlet The 956 Report, citing an air registration SpaceX filed with the Texas Commission on Environmental Quality, reported that an initial temporary setup would use 35 natural-gas turbines totaling about 748 megawatts, later replaced by eight larger turbines totaling about 708 megawatts. Those details come from the outlet’s account of the filing, not the city notice. SpaceX says the Texas project has supported more than 3,000 construction jobs so far and is expected to have more than 500 permanent jobs once operating.
In Arizona, SpaceX describes a campus costing about $50 billion. A Cochise County application filed by Tombstone Resources L.L.C. proposes up to nine computing buildings on roughly 747 acres near U.S. Highway 191 and the Arizona Electric Power Cooperative plant. The documents call for four construction phases, with the first using about 1,500 megawatts and a full build-out reaching approximately 6 gigawatts, backed by a 24-gigawatt-hour battery system. SpaceX identifies the project as its own on its project page; the county application does not name SpaceX.
SpaceX Plans Two-State AI Campus Expansion With Major Investment
SpaceX is advancing proposed AI computing campuses in Texas and Arizona, with local decisions scheduled for December 9, 2026. Both projects remain subject to approvals, and key operating details are unresolved.
Two campuses, different power plans
The energy approach affects local infrastructure and utility decisions.
- SpaceX says the site will generate its own electricity with a gas-fired plant.
- The city notice does not specify plant or computing capacity.
- Facility water demand has not been disclosed.
- The application describes grid power routed through local cooperatives.
- Full build-out is planned to reach about 6 gigawatts, backed by a 24-gigawatt-hour battery system.
- SpaceX estimates annual water use of 7 to 10 acre-feet at full build-out.
What local officials will consider
Both scheduled proceedings fall on December 9, 2026.
The City Commission is expected to consider a property-tax abatement connected to the project.
The Planning and Zoning Commission is scheduled to hold a hearing on the campus application.
What remains unresolved
Capacity and water
The computing site’s capacity and its own water demand have not been specified.
Power arrangement
Regulatory approval for the proposed electricity arrangement is unclear.
Approvals and conditions
Neither local process has concluded, and the meetings may not grant final authorization.
Two Campuses, Two Power Models
The plans show how SpaceX is pursuing large-scale computing infrastructure alongside its space business, while using different energy approaches in the two locations. In Texas, the company says the project will produce its own electricity with a gas-fired plant. In Arizona, the application describes power delivered through the grid by Sulphur Springs Valley Electric Cooperative and Arizona Electric Power Cooperative to a utility-owned substation, rather than an on-site power plant.
The scale matters locally because both projects would require substantial land, infrastructure and coordination with public agencies and utilities. The Arizona application estimates full-build power demand of about 6 gigawatts, while the Texas city notice lists approximately $24 billion in initial capital investment. These are planned figures, not completed construction or operating capacity. Whether the projects proceed, and on what terms, depends on forthcoming local decisions and other approvals.
SpaceX says the Arizona campus would use dry cooling, with no cooling towers, and estimates water use of 7 to 10 acre-feet annually at full build-out, mostly for staff. Its Texas announcement does not disclose the computing facility’s own water demand. The difference leaves an important resource question unanswered for the Texas project even as the company points to regional water infrastructure funding.
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From Orbital AI to Ground Sites
SpaceX’s new proposals follow its acquisition of xAI, announced on Feb. 2. At that time, the company argued that growing electricity demand for AI could not be met by terrestrial facilities without hardship for communities and the environment, and presented computing in orbit as an answer. The current projects are on the ground. SpaceX says the Texas site will also help develop and test technologies for future space-based computing.
The Arizona plan is documented in a county application under the name Tombstone Resources L.L.C. The company’s statement for a Nov. 4 town hall said SpaceX would host the event, and SpaceX’s project page identifies the campus as its project. The Texas city notice and SpaceX’s public statement provide the basis for the stated investment and site details there.
SpaceX also says it has committed $220 million to expand water and wastewater infrastructure for Brownsville and Cameron County, including $40 million it says it has already provided. The company says the improvements would add about 20 million gallons per day from sources independent of the Rio Grande. It has said it is not acquiring water rights, prepaying utility rates or receiving preferential access to regional water. Those infrastructure commitments do not establish how much water the Texas computing facility itself would use.
““Together, they represent more than $74 billion in planned American investment.””
— SpaceX
Key Capacity and Approval Questions
The proposals are plans, and neither local process has concluded. It is not yet clear what conditions officials may attach to approvals, whether the Starbase City Commission will approve a property-tax abatement, or what the final terms of any tax relief would be. The size and operating schedule of the Texas computing facility are also not specified in the material provided.
For Texas, SpaceX has not disclosed the facility’s own water use. The turbine figures reported by The 956 Report are based on an air registration filing and should not be treated as confirmation that the equipment has been installed or will operate as described. The city notice does not list a power-generation capacity.
For Arizona, the application describes grid power routed through SSVEC and AEPCO, but it is not clear whether the electricity arrangement behind SpaceX’s promised lower bills for cooperative members has received approval from the relevant utility regulator. The timing and financing of the four construction phases, and whether the campus reaches its stated full scale, also remain uncertain.
Dec. 9 Decisions in Both States
The next scheduled milestone is Dec. 9, 2026. Cochise County’s Planning and Zoning Commission is set to hold a hearing on the Arizona application, while the Starbase City Commission is expected to consider a property-tax abatement connected to the Texas project. The proceedings may clarify local concerns, approval conditions and the projects’ next steps, but the material available does not establish that either meeting will result in final authorization.
Further details to watch include any county action on the Arizona land-use request, decisions by utilities or regulators on the proposed power arrangement, and additional filings or disclosures on Texas air emissions, power capacity and water demand. SpaceX’s stated investment totals and employment estimates remain projections until construction and operation progress.
Key Questions
How much does SpaceX say it plans to invest?
SpaceX says the two projects represent more than $74 billion in planned investment: more than $24 billion for the Texas project and about $50 billion for the Arizona campus. These are announced plans, not confirmed completed spending.
Where are the proposed campuses?
The Texas facility is planned for about 444 acres near the Port of Brownsville in Starbase. The Arizona proposal covers roughly 747 acres near Cochise along U.S. Highway 191.
How will the projects get electricity?
SpaceX says the Texas site will generate its own electricity, and the Starbase notice describes a gas-fired plant. The Arizona application describes power supplied through local cooperatives to a utility-owned substation, with standby generators for outages and testing.
When will local officials consider the proposals?
Both proceedings are scheduled for Dec. 9, 2026: a Cochise County planning and zoning hearing for Arizona and a Starbase City Commission consideration of a property-tax abatement for Texas.
What is still unknown about the plans?
Unresolved details include the Texas computing facility’s capacity and water use, the size of any Texas tax abatement, and whether Arizona’s electricity arrangement will receive required approval. The projects’ final schedules and build-out also remain uncertain.
Source: ThorstenMeyerAI.com
