TLDR SpaceX plans a $24 billion data center and gas-fired power plant in South Texas Starbase will hold a Dec. 9 hearing on a proposed property tax break for SpaceX SpaceX would put up to $22
SpaceX (SPCX) gained 2.25%, or $3.15, to reach $142.90 by 10:26 a.m. EST. The company plans a $24 billion data center near Brownsville, Texas. Starbase officials will consider a property tax break as Texas leaders review rules for the growing data center industry.
Space Exploration Technologies Corp., SPCX
The city of Starbase disclosed the proposal in a Nov. 9 public notice. SpaceX plans to build a gas-fired power plant and a high-performance computing facility at the site. The development would cover 444 acres in Cameron County.
The proposed investment would cover the initial phases of construction, according to the notice. SpaceX could expand the facility beyond the initial development in later phases. The proposed site sits near the company’s South Texas launch operations, around which the city of Starbase formed.
In August, The Texas Tribune reported that SpaceX asked Brownsville to remove the property from its city limits. SpaceX gave no public reason for the request at the time. The November notice publicly identified the company’s planned use for the site.
The Starbase City Commission will hold a public hearing at 7 p.m. CT on Dec. 9. Commissioners will consider whether to approve a property tax abatement for the development. The proposal includes a commitment from SpaceX to fund local infrastructure.
Under the proposed terms, SpaceX would provide up to $220 million for water and wastewater projects. The company would fund both types of projects in exchange for the proposed property tax relief. The hearing allows the public to comment on the proposed agreement.
Elsewhere in South Texas, Brownsville adopted a 90-day moratorium on data center development. The temporary measure took effect on Nov. 5 and applies within Brownsville. Local governments have pursued their own restrictions while state leaders consider longer-term rules for the industry.
A University of Texas and Texas Politics Project poll found broad opposition to data centers among registered Texas voters. The June 24 release showed that 56% opposed construction in their communities. That share included 42% who strongly opposed local development.
Water and power demand have fueled concerns about the effect of data centers on household utility bills. On June 16, the San Marcos City Council changed its zoning rules. The ordinance effectively bars data center development within the city.
Outgoing Gov. Greg Abbott directed regulators to address public concerns and ordered an audit of proposed projects. He also called for a statewide moratorium as Texas officials review the industry’s growth. Governor-elect Gina Hinojosa told CNN on Nov. 5 that companies must show how their projects would benefit Texans.
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