# Elon Musk proposes $24 billion gas‑powered AI supercomputer in Starbase, Texas

> SpaceX plans a new data center and power plant in Starbase, but Texas’ incoming governor may block it.

Oossa · 2026-11-11 · https://oossa.com/en/elon-musk-proposes-24-billion-gas-powered-ai-supercomputer-in-starbase-texas

SpaceX has filed a notice for a public hearing on a combined gas‑fired power plant and AI supercomputing facility in Starbase, Texas. The project is slated to cost about $24 billion and would be owned by SpaceX, the aerospace firm founded by Elon Musk. The facility would sit inside the corporate limits of the city that already hosts SpaceX’s Starship launch operations.

If built, the center would rely on natural‑gas turbines to generate the electricity needed for large AI workloads. That design follows SpaceX’s earlier Colossus I and Colossus II data centers, which sit near the Mississippi‑Tennessee border and have already drawn legal challenges over emissions.

State officials are expected to consider the project for approval in December, but the incoming governor, Gina Hinojosa, has said she will not sign off on new data centers until the Texas legislature adopts stricter environmental safeguards. Bloomberg notes that her stance could create a political headwind for the Starbase plan.

Musk’s push for a Texas hub reflects a broader trend of AI companies seeking locations with cheaper power and more flexible regulation. However, the reliance on gas power runs counter to a growing push for renewable‑energy‑based data centers, and the legal battles around the Mississippi‑Tennessee sites suggest community opposition could reappear in Starbase.

## What the plan means for the region

A $24 billion investment would be one of the largest single‑project spends in Texas history. It could bring construction jobs and long‑term technical positions to a remote area that currently revolves around rocket launches. At the same time, the gas‑fuel choice raises concerns about air quality and climate impact, especially in a state that is already grappling with emissions from its energy sector.

Local residents have previously sued over pollutants from the gas turbines at the Colossus sites. If a similar lawsuit is filed in Starbase, it could delay construction or force the company to adopt cleaner technologies. The governor’s promised legislative review adds another layer of uncertainty, as any new rules could increase compliance costs or even halt the project.

For businesses that rely on AI compute, the new center could offer a nearby source of high‑performance hardware, potentially lowering latency for SpaceX’s own AI‑driven services. However, until the plant is built and its power source confirmed, companies cannot count on the promised capacity.

## The facts

- SpaceX filed a public‑hearing notice for a gas‑fired power plant and AI supercomputer in Starbase, Texas.
- The project’s estimated cost is $24 billion.
- Approval is expected to be considered by Texas officials in December, according to Bloomberg.
- Incoming governor Gina Hinojosa has said she will block new data centers until stronger environmental protections are enacted.
- SpaceX’s earlier Colossus I and Colossus II data centers near the Mississippi‑Tennessee border faced lawsuits over gas‑turbine emissions.

## Why it matters

If approved, the Starbase supercomputer could create many jobs and give local firms faster AI compute access. At the same time, the reliance on natural gas may raise air‑quality concerns and could be delayed by legal or regulatory challenges, leaving the promised economic boost uncertain.

## Sources & references

1. [Elon Musk wants to build a s $24 billion gas-powered AI supercomputer in Texas company town](https://www.tomshardware.com/tech-industry/data-centers/elon-musk-wants-to-build-a-new-gas-powered-data-center-in-starbase-texas-usd24-billion-site-goes-up-for-approval-in-december-but-could-face-headwinds-from-new-governor) – Tom's Hardware, 2026-11-11

Last updated: 2026-11-11