SpaceX announced on 12 November plans to invest more than $74 billion in AI data centre campuses in Texas and Arizona, including a $50 billion site in Cochise County, Investor’s Business Daily reported. The computing capacity is intended for SpaceXSI, the company’s AI unit formerly known as xAI and developer of Grok, Trending Topics reported.
Key points
- The planned Arizona campus is expected to cost about $50 billion. Reports give different figures for the Texas investment: more than $24 billion and up to $24 billion.
- SpaceX says it is putting $220 million towards Brownsville water and wastewater projects, with $40 million already paid.
- The company says its Texas facility would supply its own electricity and its Arizona campus would use dry cooling.
- Brownsville has imposed a 90-day moratorium on new data centres. A petition opposing the Arizona project has nearly 2,200 signatures.
Starbase’s $24 billion investment estimates
The Texas campus is planned for roughly 444 acres near the Port of Brownsville, alongside SpaceX’s existing Starship operations at Starbase. SpaceX says the facility would train AI models and test technology for future data centres in space.
Investor’s Business Daily put the planned Starbase investment at more than $24 billion and said it would extend $15 billion of existing Starship and infrastructure projects. Trending Topics described the proposed spending as up to $24 billion.
The reports also differ on the timing of construction employment. SpaceX said the Texas project has generated more than 3,000 construction jobs and expects more than 500 permanent jobs once the facility operates, Investor’s Business Daily reported. Trending Topics listed more than 3,000 construction jobs as a planned figure.
SpaceX says the campus would generate its own electricity rather than draw power from the public grid. AI Affairs reported that SpaceX sought tax relief for an estimated $24 billion Texas power-and-computing project. The company is also negotiating tax breaks with Starbase and Cameron County.
Brownsville’s $220 million water projects
SpaceX says it is putting $220 million towards drinking water and wastewater projects for Brownsville and Cameron County, including $40 million already paid. The work is intended to add about 20 million gallons of daily water capacity independently of the Rio Grande. Two reservoirs on that river supply about three-quarters of Brownsville’s water and have reached critically low levels.
The company says financing the projects through loans instead would have cost customers more than $370 million over 25 years. It says the completed facilities would remain city property, while SpaceX would receive no water rights or preferential access and would pay standard rates.
Brownsville has imposed a 90-day moratorium on new data centres, although the proposed site had already been transferred to Starbase. The South Texas Environmental Justice Network has announced a protest over concerns including air quality, water use and electricity bills.
Cochise County’s $50 billion campus
In Arizona, SpaceX plans a supercomputing campus in Cochise County expected to cost about $50 billion. The company expects about 5,500 construction jobs and about 1,000 permanent jobs from the project. It says it would work with local electric cooperatives and draw on existing renewable energy resources.
SpaceX plans to use dry cooling at the Arizona site, with no industrial groundwater consumption or new wells. It says the project could reduce electricity bills for cooperative members by up to 20%. Residents have raised concerns about groundwater, wildlife at the Willcox Playa and the effect of the campus on the surrounding area.
A petition against the Cochise County project has nearly 2,200 signatures. Cochise County’s zoning commission is set to decide on the application in December.
