TLDR
- SpaceX seeks local tax incentives for its proposed $24 billion Texas computing and power project.
- Starbase officials will consider the proposed agreements on December 9, 2026.
- The project covers approximately 444 acres near Brownsville and the Port of Brownsville.
- The city will consider agreements under Chapters 312 and 380 of Texas law.
- SpaceX recruitment material describes dedicated gas-powered generation for the planned AI supercomputer.
SpaceX seeks local tax relief for a proposed $24 billion supercomputer and gas plant in Texas. Starbase commissioners will consider the request on December 9, according to a city hearing notice.
Starbase to Consider Two Incentive Agreements
City officials will examine a property tax abatement under Chapter 312 of the Texas Tax Code. They will also consider a separate development agreement under Chapter 380 of Texas law. The notice identifies Space Exploration Technologies Corp. as both the property owner and applicant.
A 444-acre site lies between Boca Chica Boulevard and the Port of Brownsville. The land sits within the Cameron County Enterprise Zone. State law recognizes designated enterprise zones as reinvestment zones for tax-abatement purposes.
The city describes $24 billion as estimated investment for initial phases, with potential expansions later. However, the notice gives no abatement percentage, duration, expected jobs, or final construction timetable. The hearing begins December 9 at 7 p.m. at Starbase City Hall.
Texas law requires at least 30 days’ notice before officials consider an abatement agreement. Approval requires a majority vote during a regularly scheduled meeting. Chapter 312 also limits municipal abatements to 10 years, subject to legal conditions.
A SpaceX millwright job posting describes on-site power generation for the Starbase AI supercomputer. The role involves gas turbines, generators, and emissions-control equipment. That employment description supports the planned power plant, beyond the city’s tax notice.
The Rio Grande Valley Business Journal cited plans for 35 turbines and 748 megawatts. Those figures have not been independently checked against the original filing.
The notice does not explain how SpaceX would use the computing capacity. It also omits power demand, water usage, and whether outside customers could access the facility. Furthermore, it provides no equipment details for each construction phase.
AI Investment Extends Beyond SpaceX
SpaceX acquired xAI in February, according to an official company announcement. The combination brought rocket, satellite, and artificial intelligence operations under one company. CoinCentral previously covered the merger and the group’s exposure to Bitcoin.
The expansion also follows other large Texas computing deals involving cryptocurrency miners. In August, CoinCentral reported an Anthropic-linked data-center deal involving Riot Platforms. Riot’s SEC filing confirms a 20-year lease for 191 megawatts, without naming the tenant.
By contrast, SpaceX proposes owning both the power plant and the computing facility. That structure makes the pending incentive agreements central to its local development plans. No tax relief has been approved, and the commission’s decision remains outstanding.
