SpaceX is seeking property-tax incentives for a proposed $24 billion data center and natural-gas power plant near Brownsville, Texas. The development would occupy approximately 444 acres within Starbase and include dedicated electricity generation. The proposal follows a separate agreement providing up to $220 million for regional water infrastructure, while environmental permits and local incentive decisions remain under consideration.
Key Takeaways
- SpaceX proposes an estimated $24 billion investment in the initial phases of a data center and power-generation facility near Brownsville
- The development would occupy approximately 444 acres within Starbase, close to the Port of Brownsville
- An air-permit filing identifies 35 natural-gas turbines with approximately 748 megawatts of generation capacity
- A separate agreement provides for up to $220 million in funding for regional water and wastewater projects
- Starbase officials are scheduled to consider a property-tax abatement and economic development agreement on December 9, 2026
SpaceX Plans $24 Billion Data Center Near Brownsville
The proposed SpaceX Texas data center would combine large-scale computing infrastructure with a natural-gas power plant near the Port of Brownsville in Cameron County.
The estimated $24 billion investment covers the project’s initial phases, with potential expansion depending on future development plans. The figure represents planned capital spending rather than completed construction.
The facility would support computing operations through dedicated power generation. However, detailed specifications for the computing equipment and a confirmed construction timeline have not been publicly established.
SpaceX is seeking local economic development agreements that could reduce its property-tax obligations. Starbase and Cameron County are among the authorities considering incentive arrangements for the proposed facility.
Proposed Development Covers 444 Acres Near Starbase
The project would occupy approximately 444.45 acres east of Brownsville, between Boca Chica Boulevard and the Port of Brownsville.
In August 2026, Brownsville approved removing the property from its municipal boundaries and extraterritorial jurisdiction. Starbase subsequently annexed the land in September, placing the proposed development within its city limits.
The jurisdictional changes affect which local authorities oversee the property and consider development agreements.
Brownsville later adopted a temporary moratorium on data center applications within its jurisdiction. Because the SpaceX property had already been removed from Brownsville’s boundaries, the restriction does not apply to the proposed site.
The location places the development near SpaceX’s existing South Texas aerospace operations, although the data center and power plant would constitute a separate industrial project.
Natural Gas Power Plant Could Generate About 750 Megawatts
Electricity generation is a major component of the proposal.
A September 2026 air-permit registration submitted to the Texas Commission on Environmental Quality describes an initial configuration involving 35 natural-gas turbines with approximately 748 megawatts of combined generation capacity.
The filing also identifies a possible later configuration using eight larger turbines with approximately 708 megawatts of capacity. Neither arrangement represents an operating facility or a finalized construction plan.
The proposed power plant would supply electricity to the computing operation, potentially reducing its reliance on the existing grid.
Other Texas developments are exploring similar arrangements. The Project Star energy development in Encinal proposes a data center campus supported by dedicated natural-gas generation.
SpaceX’s proposed turbines remain subject to applicable environmental requirements. The air-permit filing provides technical details but does not establish that all necessary approvals have been granted.
Brownsville Water Agreement Provides Up to $220 Million
Regional water and wastewater infrastructure forms another part of the arrangements associated with the proposed facility.
In August 2026, Brownsville approved a water infrastructure funding agreement under which SpaceX could contribute up to $220 million toward qualifying regional projects.
The agreement includes an initial $40 million escrow contribution, followed by six quarterly payments of $30 million each, subject to its terms.
The funding supports two proposed infrastructure improvements:
- Wastewater reclamation: A system expected to add approximately 8 million gallons of daily water capacity
- Southmost Regional Water Authority expansion: Improvements expected to add approximately 10 million gallons of daily water capacity
Together, the projects could increase regional capacity by approximately 18 million gallons per day.
The agreement does not give SpaceX ownership of the public infrastructure or reserve the additional capacity exclusively for the company. It also does not establish the proposed data center’s eventual water consumption.
Tax Incentives and Environmental Permits Remain Under Review
SpaceX’s proposed development remains subject to local government decisions and environmental permitting.
The Starbase City Commission is scheduled to hold a public hearing on December 9, 2026, to consider a property-tax abatement under Chapter 312 of the Texas Tax Code and an economic development agreement under Chapter 380 of the Texas Local Government Code.
Cameron County is also considering an incentive request connected to the development.
The proposed tax arrangements are separate from the environmental authorizations required for the natural-gas power plant. Approval of an incentive agreement would not automatically authorize construction or operation of the generating equipment.
As of November 14, 2026, the available information does not establish final tax-abatement terms, approval of all required environmental permits or a confirmed construction completion date.
The project’s progress will depend on the applicable regulatory decisions, infrastructure arrangements and SpaceX’s construction plans.
Frequently Asked Questions
Where Will the SpaceX Texas Data Center Be Located?
The proposed data center would occupy approximately 444.45 acres within Starbase, near the Port of Brownsville in Cameron County, South Texas.
How Much Will the SpaceX Texas Data Center Cost?
SpaceX estimates approximately $24 billion in spending for the project’s initial phases. This is a proposed investment figure, not a confirmed final construction cost.
How Much Electricity Would the Proposed Power Plant Generate?
The initial configuration includes 35 natural-gas turbines with approximately 748 megawatts of combined generation capacity. A different turbine configuration is also described in the project’s permit filing.
How Much Is SpaceX Contributing to Brownsville’s Water Infrastructure?
A development-related agreement provides for up to $220 million in SpaceX funding for regional water and wastewater improvements, subject to the agreement’s terms.
Has the SpaceX Texas Data Center Been Approved?
The project has not received all necessary approvals. Local tax incentives remain under consideration, and environmental authorization is still required for the proposed power-generation facilities.
When Will Construction Begin?
A confirmed construction start date and completion schedule have not been publicly established. The project remains subject to applicable approvals and further development decisions.
