SpaceX Seeks Tax Breaks for $24 Billion Gas Plant and Data Center Project in Starbase, Texas
A property tax abatement agreement and an accompanying economic development agreement will go before the Starbase City Commission at a 7 p.m. CT meeting on Dec. 9, according to a public hearing notice issued by the City of Starbase.
The December 9 Vote Could Unlock Abatements for the Venture
The measures concern a project in which SpaceX proposes to build, own, and operate a natural gas power station together with a supercomputing site, with the initial phases carrying an estimated USD 24 billion in capital investment.
Interested members of the public are invited to attend the meeting and be heard, the notice stated. The commission's decision will determine whether the project advances with the agreements under consideration.
Inside the 444-Acre Site Near Brownsville
The development would occupy an approximately 444-acre tract inside Starbase's city limits, a location east of Brownsville bounded by Boca Chica Boulevard and the Port of Brownsville.
Under the hearing notice, the project would fall within the Cameron County Enterprise Zone, a designation that counts as a reinvestment zone under Texas tax law.
The capital investment may be delivered across multiple phases, and future expansions could be included in the plans.
Starbase itself is a recent addition to the map of Texas municipalities, having been incorporated in 2025. The city is home to several hundred SpaceX employees along with members of their families.
Elon Musk's wider energy ambitions take shape
The Starbase proposal is the latest indication, according to Bloomberg, that SpaceX CEO Elon Musk aims to bring the company's natural gas supply chain under its own control.
In September, SpaceX advanced a plan for a company-owned gas line in Florida that would supply Starship rockets at Cape Canaveral. The company has also recruited gas traders at both Starbase and Cape Canaveral.
In a separate effort, SpaceX intends to build a natural gas power station serving a chip-making plant it is developing with Tesla in Grimes County, outside Houston, per Bloomberg.
A shifting political landscape in Texas
The plans surface as Texas politics move around data center development.
Gov.-elect Gina Hinojosa, who made a statewide moratorium on data centers a campaign promise, is the first Democrat to win the Texas governorship since 1990.
Cloud computing firm CoreWeave has written to Hinojosa proposing collaboration on data center projects that are underway or still in the planning stage. Because Republicans hold the majority in the Texas Legislature, her ability to change state policy is limited.
Bloomberg reported that Hinojosa's election could create headwinds for Musk's plans. Rising electricity costs and concerns about environmental damage have fueled demonstrations against data centers across the country, including one targeting a Memphis complex connected to Musk's companies.