SpaceX plans to build a gas-fired power plant and supercomputing facility in the southernmost tip of Texas, with an initial investment of approximately $24 billion. Announced by the city government of Starbase, Texas, where SpaceX is locatedPublic hearing announcementIt states that the City Council will meet on the evening of December 9 to review the real estate tax relief agreement and related economic development agreement for SpaceX.

The plan contained only one sentence in the announcement: SpaceX will "build, own and operate a gas-fired power plant and supercomputing facility." The $24 billion is an estimated investment in the initial phase, with possible subsequent construction and expansion in phases. The announcement did not mention the size of the power plant, the amount of tax breaks, or the investment or employment conditions promised by SpaceX.

Reservation 444 acres, just seceded from the City of Brownsville for the summer

According to the announcement, the reserved land is approximately 444 acres, located on the east side of Brownsville, between Boca Chica Boulevard and the Port of Brownsville, and is currently zoned within the city limits of Starbase and is part of the Cameron County Enterprise Zone.

Texas Tribunereport, this land was originally within the city limits of Brownsville. SpaceX asked Brownsville this summer to draw it outside the city limits and provide $220 million to fund local water and sewer projects in exchange; after Brownsville agreed, Starbase then incorporated the land.

Brownsville implemented a 90-day data center moratorium last week, suspending data center applications within the city and surrounding jurisdictions. The Texas Tribune pointed out that if the land is still within Brownsville city limits, the plan may have to find another location. The Brownsville City Council stated that it maintains that the original decision to draw city boundaries was based on the information and circumstances at the time.

Build your own gas-fired power plant without having to connect to the Texas power grid

In August, Texas Governor Greg Abbott asked power grid operators to suspend accepting applications for data center connection to the grid until an audit is completed; however, data centers that provide their own power and are not connected to the grid are not affected. The Texas Tribune pointed out that the gas-fired power plant planned by SpaceX can directly supply power to computing facilities without being connected to the state power grid.

Governor-elect Gina Hinojosa, who will take office next year, said during her campaign that she would suspend all data center approvals pending legislation in the state Legislature (Related reports). The South Texas Environmental Justice Network, a local environmental group, also launched a protest, arguing that the plan would pollute the air, consume water resources and drive up electricity bills.

SpaceX acquired xAI in February this year and listed on Nasdaq in June. The Starbase City Council's Dec. 9 public hearing is open to the public to express their opinions before a vote on the tax abatement agreement.

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