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SpaceX bets $74B on two AI data center campuses in Texas and Arizona

SpaceX plans roughly $50B for an Arizona campus and $24B-plus for a Texas campus.

SpaceX said on November 12, 2026, that it plans to invest more than $74 billion across two supercomputing campuses — roughly $50 billion in Cochise County, Arizona, and more than $24 billion near its Starbase rocket site in Texas's Rio Grande Valley3,4,5. In October, SpaceX reported that its AI business accounted for more than half its revenue1.

The projects would rank among the largest data center developments in the United States.

Texas: self-powered, already under way

The Texas campus is planned for a 444-acre tract of SpaceX-owned land near the Port of Brownsville, where grading and site preparation have already begun2. SpaceX said the facility will train frontier AI models and generate its own electricity through an on-site gas-fired power plant rather than draw from the public grid. The company said the project has already created more than 3,000 construction jobs and is expected to support more than 500 permanent positions.

The site was removed from Brownsville's jurisdiction in August under an agreement in which SpaceX committed $220 million for regional water and wastewater projects; Starbase annexed the land in September. The Starbase City Commission will consider a property tax abatement and related economic development agreement next month, and Cameron County commissioners are also weighing a tax abatement at a meeting next week.

Arizona: county approval still required

The Arizona campus in Cochise County would create 5,500 construction jobs and 1,000 permanent jobs, SpaceX said. The company said it is working with local electric cooperatives and pursuing approval for the project with a goal of lowering electricity bills for cooperative members. The Arizona project still requires county approval.

Revenue and customers

SpaceX, which went public this year in what the New York Times described as the biggest initial public offering in history, has grown a business leasing computing power to other AI companies. Anthropic has committed to paying up to $120.5 billion through 2029, and Google is paying SpaceX $920 million per month for computing power.

The announcements arrived as data centers have become a political flashpoint. Democratic Governor-elect Gina Hinojosa of Texas has been critical of data centers, though Wall Street analysts largely expect her to allow projects that have received permits or broken ground to continue, according to the Wall Street Journal via Morningstar. Elon Musk had spent more than $440 million to support Republicans in the midterms, including more than $150 million backing Republican Ken Paxton's unsuccessful Senate campaign in Texas.

SpaceX did not immediately respond to the New York Times's request for comment.

ANALYSIS The scale of the combined investment — and the decision to self-generate power in Texas — positions SpaceX to sidestep grid-capacity constraints that have slowed data center buildouts elsewhere, while the tax-abatement requests in Starbase and Cameron County test local appetite for the facilities at a moment of rising political scrutiny.

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