🔍 Read the full analysis: SpaceX Plans AI Campuses As Texas And Arizona Vie For Investment on ThorstenMeyerAI.com
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TL;DR
SpaceX says it is advancing AI computing projects in Starbase, Texas, and Cochise County, Arizona, with more than $74 billion in planned investment combined. Both proposals face local proceedings on Dec. 9, 2026; project details and approvals remain outstanding.
SpaceX says it is advancing two AI computing campus projects—one near its Starbase, Texas, rocket site and another in Cochise County, Arizona—with more than $74 billion in planned investment. The proposals still need local action: Starbase officials are due to consider a property tax abatement, while Cochise County’s Planning and Zoning Commission is scheduled to hold a hearing on the Arizona application on Dec. 9, 2026.
SpaceX’s Nov. 12 announcement puts the Texas investment at more than $24 billion and the Arizona campus at about $50 billion. The Starbase project is planned for an approximately 444-acre site between Boca Chica Boulevard and the Port of Brownsville. A city notice describes the proposal as including a gas-fired power plant and a supercomputing facility; SpaceX says the site would generate its own electricity rather than draw from the public grid.
The Starbase notice lists an estimated $24 billion in capital investment for initial phases, with possible later expansion. It does not state the computing facility’s capacity or the power plant’s capacity. Local outlet The 956 Report, citing an air registration filed with the Texas Commission on Environmental Quality, reported plans for a temporary setup of 35 natural-gas turbines totaling about 748 megawatts, followed by eight larger turbines totaling about 708 megawatts. Those figures come from the outlet’s account of the filing, not from the city notice.
In Arizona, a county application filed by Tombstone Resources L.L.C. covers about 747 acres near Cochise and U.S. Highway 191. SpaceX’s project page identifies the proposed development as its project, though the county documents cited in the source material do not name SpaceX. The application describes as many as nine computing buildings, each about 493,000 square feet, built in four phases. It gives a full-build power requirement of approximately 6 gigawatts and a battery system of 24 gigawatt-hours. Electricity would come through local cooperatives and a utility-owned substation, rather than an on-site power plant.
SpaceX plans two AI campuses Local approvals still pending
SpaceX says it is advancing large computing campuses in Texas and Arizona. Both proposals face local proceedings, and their costs and operating details remain projections.
Two campuses, different power plans
The proposed sites would use different approaches to electricity and cooling.
- Planned gas-fired power plant and supercomputing facility.
- SpaceX says the site would generate its own electricity.
- Computing and power plant capacity are not specified in the city notice.
- Grid power through local cooperatives and a utility-owned substation.
- Application describes dry cooling, with no cooling towers.
- Up to nine computing buildings are proposed across four phases.
Local stakes
The plans raise questions about water, jobs, power supply, and public finances.
Arizona estimate
The application estimates 7 to 10 acre-feet of annual water use at full build-out, mostly for staff.
Facility demand undisclosed
SpaceX cites $220 million committed to regional water and wastewater infrastructure, but has not disclosed the computing facility’s own water demand.
Company and application estimates
Projections include more than 500 permanent jobs in Texas and about 1,000 Arizona staff at full build-out.
What happens next
Local action is scheduled for both proposals; neither has cleared the steps described in the source material.
Local Power, Water and Tax Stakes
The proposals put the costs and practical effects of large-scale AI infrastructure before two local governments. In Texas, SpaceX’s plan to generate power on site makes the proposed gas-fired plant a central part of the project, alongside questions about air emissions and the facility’s capacity. In Arizona, the project would depend on a major grid connection and electricity supplied through the Sulphur Springs Valley Electric Cooperative and the Arizona Electric Power Cooperative.
SpaceX says the Arizona campus would use dry cooling, with no cooling towers, and that estimated water use at full build-out would be 7 to 10 acre-feet a year, mostly for staff. The application compares that with 400 to 600 acre-feet a year for a center-pivot field on a 160-acre quarter section. In Texas, SpaceX says it has committed $220 million for water and wastewater infrastructure in Brownsville and Cameron County, including $40 million it says it has already provided. But it has not disclosed the computing facility’s own water demand.
The scale also matters for employment and public finances. SpaceX says the Texas project has generated more than 3,000 construction jobs so far and could support more than 500 permanent jobs. Arizona’s application estimates about 5,500 construction workers at peak, roughly 250 staff when the first buildings open, and about 1,000 at full build-out. Those are company or application estimates, not confirmed job totals. Local decisions on land use, tax treatment, and power arrangements will shape whether and how the projects proceed.
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From Orbital AI to Ground Campuses
SpaceX’s announcement follows its Feb. 2 announcement that it had acquired xAI. At the time, the company argued that rising electricity demand for AI could not be met by terrestrial infrastructure without hardship for communities and the environment, and pointed to data centers in orbit as a possible answer. The new Texas and Arizona proposals are ground-based facilities. SpaceX presents the Texas site, at least, as also helping develop and test technology for future space-based computing.
The two proposals take different approaches to electricity and cooling. Starbase would have an on-site gas-fired power plant, according to the city notice. Cochise County’s application instead describes grid-supplied power, dry cooling, and standby natural-gas generators for outages and testing. The Arizona application estimates about 10 megawatts of standby generation per building. The company’s Nov. 12 statement describes the combined planned investment as more than $74 billion; that is a proposed investment figure, not money already spent.
““Together, they represent more than $74 billion in planned American investment.””
— SpaceX
Project Costs and Approvals Pending
Neither proposal has cleared the local steps identified in the source material. The Texas project’s computing capacity, its own water use, and the size of any proposed property tax abatement are not specified. The city notice identifies a gas-fired plant but does not provide its capacity; the turbine details reported by The 956 Report rely on an air registration and should be understood as reported plans.
In Arizona, the county application names Tombstone Resources rather than SpaceX. SpaceX’s project page and Tombstone Resources’ town hall statement link the company to the proposal, but the precise legal and operating arrangements are not detailed in the materials provided. It is also unclear whether the relevant utility regulator will approve the electricity arrangements behind SpaceX’s promise of lower bills for local cooperative members. The company’s project estimates—including investment, employment, power demand and water use—remain projections.
Dec. 9 Hearings Set Key Tests
The next scheduled local proceedings are both on Dec. 9, 2026. Cochise County’s Planning and Zoning Commission is set to hear the Arizona application, while the Starbase City Commission is due to consider a property tax abatement for the Texas project. The source material does not specify the outcome of either proceeding or whether additional approvals will be needed afterward.
Those proceedings may clarify project conditions, tax treatment, and the path for the Arizona power supply. Further disclosures from SpaceX, the project applicant, local utilities, and regulators would help establish the facilities’ final designs and costs. Until then, the announced investment totals and operating figures should be treated as plans or estimates, not completed construction or approved commitments.
Key Questions
What has SpaceX announced?
SpaceX says it is advancing two AI computing campuses, one in Starbase, Texas, and one in Cochise County, Arizona, with more than $74 billion in planned investment combined.
How will the two campuses get electricity?
The Starbase proposal includes a gas-fired power plant and SpaceX says it would generate its own electricity. The Arizona application describes grid power delivered through local cooperatives, with standby natural-gas generators for outages and testing.
How much water would the facilities use?
The Arizona application estimates 7 to 10 acre-feet a year at full build-out, mostly for staff. SpaceX has not disclosed the Texas computing facility’s water use, although it says it is funding regional water and wastewater infrastructure.
What approvals are scheduled next?
On Dec. 9, 2026, Cochise County’s Planning and Zoning Commission is scheduled to hear the Arizona application, and the Starbase City Commission is scheduled to consider a property tax abatement for the Texas project.
Are the investment and job figures final?
No. The investment amounts, employment estimates, power requirements, and other operating figures are plans or estimates. Both projects still face local proceedings, and further details and approvals remain pending.
Source: ThorstenMeyerAI.com
