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TL;DR
SpaceX says it is advancing two AI computing campuses: a more than $24 billion project in Starbase, Texas, and a roughly $50 billion project in Cochise County, Arizona. Both face local decisions scheduled for December 9, 2026; important questions remain about Texas water use and tax relief, and Arizona’s power arrangements.
SpaceX said on November 12 that it is advancing two AI computing campuses in Starbase, Texas, and Cochise County, Arizona, describing the combined planned investment as more than $74 billion. Both proposals now face local proceedings scheduled for December 9, while details including the Texas facility’s water use and Arizona’s electricity arrangements remain unresolved.
In Texas, SpaceX says it plans to invest more than $24 billion in computing infrastructure near the Port of Brownsville. A Starbase City Commission notice describes an approximately 444-acre site and an initial capital investment of about $24 billion, with possible later expansions. The notice describes a gas-fired power plant and supercomputer facility; SpaceX says the project will generate its own electricity rather than draw from the public grid.
SpaceX says the Texas project is intended to train advanced AI systems and support work in areas including medical research, emergency response, manufacturing and national security. The company reports more than 3,000 construction jobs so far and expects more than 500 permanent jobs once the facility is operating. It also says it has committed $220 million to Brownsville and Cameron County water and wastewater infrastructure, including $40 million already provided. The company says those infrastructure projects could add about 20 million gallons of water per day from sources independent of the Rio Grande.
In Arizona, SpaceX describes a roughly $50 billion campus on about 747 acres near Cochise. The county application was filed by Tombstone Resources L.L.C.; the documents described in the source material do not name SpaceX, though the company’s project page and Tombstone’s town-hall statement link the proposal to SpaceX. The plan calls for up to nine computing buildings, with a reported full build-out of about 6 gigawatts of grid power and a 24-gigawatt-hour battery system. The application estimates 7 to 10 acre-feet of annual water use at full build-out, mostly for staff, and proposes dry cooling without cooling towers.
SpaceX plans two AI campuses in Texas and Arizona
SpaceX says the proposed campuses represent more than $74 billion in planned investment. Local proceedings are scheduled for December 9, 2026, while key power, water and tax details remain unresolved.
Two sites, different power plans
The proposals depend on major energy infrastructure, with a different approach at each campus.
- City notice describes a gas-fired power plant.
- SpaceX says the facility will generate its own electricity.
- Its computing operation’s water use is not stated.
- Application describes power delivered through two cooperatives to a utility-owned substation.
- Standby natural-gas generators are planned for outages and testing.
- Estimated water use is 7 to 10 acre-feet per year at full build-out.
What the communities are weighing
Projected benefits come with infrastructure needs and unanswered local questions.
Jobs and water investment
SpaceX reports more than 3,000 construction jobs so far and expects more than 500 permanent jobs. It says it has committed $220 million to local water and wastewater infrastructure.
Large-scale build-out
The application describes up to nine computing buildings and estimates about 5,500 construction workers at peak, with about 1,000 staff at full build-out.
Local decisions ahead
Both listed proceedings are scheduled for December 9, 2026.
The Planning and Zoning Commission is set to hear the Arizona application.
The City Commission is scheduled to consider a property-tax abatement connected to the Texas project.
Two Campuses, Two Power Models
The proposals show SpaceX seeking large-scale computing capacity on the ground while also presenting the Texas site as a way to develop technologies for future space-based computing. The projects would require substantial energy infrastructure: on-site gas generation in Texas and a planned connection to the grid in Arizona. Their scale makes local land-use, utility and environmental decisions central to whether the plans proceed as described.
The economic figures are also consequential for the communities involved, but they remain company projections and project estimates, not a guarantee of completed investment or jobs. In Starbase, the company has tied the project to water and wastewater infrastructure spending. In Cochise County, the application’s stated employment estimates are about 5,500 construction workers at peak, roughly 250 staff when the first buildings open and about 1,000 at full build-out. Local officials and residents will weigh those projected benefits against the facilities’ infrastructure requirements and other effects.
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From Orbital Computing to Texas and Arizona
SpaceX previously argued that growing electricity demand for AI could not be met by terrestrial infrastructure without burdening communities and the environment, and pointed to data centers in orbit. The company’s November announcement instead puts two major computing projects forward in existing communities. SpaceX says the Texas facility would also help develop and test technologies for future space-based computing, framing the ground project as connected to, rather than a replacement for, its earlier idea.
The two sites have different proposed energy and cooling approaches. Starbase’s city notice identifies a gas-fired power plant, while the Arizona application describes power delivered through Sulphur Springs Valley Electric Cooperative and Arizona Electric Power Cooperative to a utility-owned substation. It also describes standby natural-gas generators for outages and testing, not a dedicated on-site power plant. SpaceX’s combined investment figure is based on its own announced plans.
“Together, they represent more than $74 billion in planned American investment.”
— SpaceX, in its November 12 announcement
Power, Water and Tax Questions
Several key details are not established in the available project information. For Texas, the computing facility’s own water use is not stated, and the size of any property-tax abatement is not specified. SpaceX says it will not acquire water rights or receive preferential access to local water, but that does not answer how much water the computing operation itself would require.
The Arizona application sets out a grid-power plan and estimated water use, but the status of the electricity arrangements and whether the utility regulator will approve the deal behind promised lower bills for cooperative members remain unclear. SpaceX’s statements about investment, jobs, water benefits and bill reductions are plans or company claims, not confirmation that the projects or their projected outcomes have received all required approvals. The county application’s use of Tombstone Resources L.L.C. also means its documents, as described in the source material, do not themselves name SpaceX.
December 9 Local Decisions
The next listed local milestones are both scheduled for December 9, 2026. The Cochise County Planning and Zoning Commission is set to hold a hearing on the Arizona application. On the same day, the Starbase City Commission is scheduled to consider a property-tax abatement connected to the Texas project. Those proceedings could clarify local approval requirements and some of the terms under consideration, but the information available does not establish what either body will decide.
Further project detail will be needed to assess the plans fully, including the Texas facility’s computing capacity and water demand, the proposed tax relief, and the final status of Arizona’s power arrangements. Until approvals and those details are established, the announced investment totals and operating estimates should be treated as proposals rather than completed projects.
Key Questions
What did SpaceX announce?
SpaceX said it is advancing two AI computing projects: a more than $24 billion campus in Starbase, Texas, and a roughly $50 billion campus in Cochise County, Arizona. The company puts the combined planned investment above $74 billion.
When will local officials consider the projects?
The Cochise County Planning and Zoning Commission has a hearing scheduled for December 9, 2026. The Starbase City Commission is also scheduled that day to consider a property-tax abatement related to the Texas project.
How would the Arizona campus get power?
The county application describes grid electricity delivered through Sulphur Springs Valley Electric Cooperative and Arizona Electric Power Cooperative to a utility-owned substation. It also lists standby natural-gas generators for outages and testing.
How much water would the Arizona project use?
The application estimates 7 to 10 acre-feet per year at full build-out, mostly for staff, and describes dry cooling without cooling towers. That is an estimate in the application, not a reported operating measurement.
What is still unknown about the Texas campus?
The available information does not specify the computing facility’s water use or the size of the property-tax abatement being considered. The city notice identifies a gas-fired power plant but does not give its capacity.
Source: ThorstenMeyerAI.com
