SpaceX is planning a $24 billion gas-fired power plant and AI data centre in Starbase, Texas, as Elon Musk’s company expands its computing infrastructure ahead of another major Starship test flight.
The proposed investment comes as Texas prepares for a change in leadership, with incoming Governor Gina Hinojosa having advocated a moratorium on new hyperscale data centres.
Meanwhile, SpaceX is preparing to attempt the recovery of both stages of its Starship rocket during its next test flight, potentially marking an important milestone in its reusability programme.
The developments come as Morgan Stanley reiterated its overweight rating on SpaceX, pointing to opportunities in robotics, mesh networks and space-based infrastructure as the company moves beyond its current AI computing expansion.
SpaceX stock SPCX was up 0.32% at the time of writing. The stock is not trading above its price levels from November 3rd since the election results.
SpaceX’s $24 billion Texas data centre faces policy hurdles
SpaceX plans to invest approximately $24 billion in the initial phases of a gas-fired power plant and AI data centre in Starbase, according to a Bloomberg report citing a local public hearing notice.
The project could be developed across multiple phases, with the possibility of future expansions.
Starbase is SpaceX’s home base in Texas, where the company manufactures and launches its Starship rocket system.
The investment could face regulatory and political challenges following the election of Gina Hinojosa as Texas governor.
Hinojosa has advocated a moratorium on new hyperscale data centres and proposed measures to protect residential electricity rates.
Although SpaceX intends to generate its own electricity through the planned gas-fired facility, the project would still require environmental and power-related approvals from state agencies.
These include the Texas Commission on Environmental Quality, the Public Utility Commission of Texas and the Electric Reliability Council of Texas.
SpaceX currently operates two data centres near the Tennessee-Mississippi state line.
The company ended the third quarter with 1.7 gigawatts of AI computing capacity and plans to increase this to approximately 3 gigawatts by the end of 2026 and as much as 10 gigawatts by the end of 2027.
Starship’s next test flight targets full rocket recovery
SpaceX is preparing for its 15th Starship test flight, potentially as early as November 13.
The mission is scheduled to launch from Starbase during a 75-minute window beginning at 5:45 p.m. Eastern Time.
The flight will attempt to return both the Super Heavy booster and the Starship upper stage to the launch site, where mechanical arms on launch towers would catch the vehicles.
It would be the first planned recovery attempt involving a Super Heavy V3 booster.
SpaceX has previously caught three earlier-generation boosters during flight tests, with two subsequently flying again.
The mission is expected to last more than 22 hours, with Starship reaching an altitude of approximately 275 kilometres and completing around 14 orbits before attempting its return.
The spacecraft is also scheduled to deploy 26 next-generation Starlink V3 satellites.
Each satellite is designed to provide one terabit of network capacity, with the combined capacity expected to match approximately 10 launches of smaller Starlink V2 Mini satellites aboard Falcon 9 rockets.
A successful recovery could help SpaceX reduce launch costs and turnaround times.
It also has implications for NASA’s lunar ambitions, which depend partly on a modified version of Starship, and the company’s longer-term plans for Mars missions.
Morgan Stanley maintains overweight rating on SpaceX
Morgan Stanley reiterated its overweight stance on SpaceX, highlighting the company’s potential to expand into several technology and infrastructure markets.
The investment bank said SpaceX was moving beyond the peak of the neocloud investment cycle, arguing that efficiency in intelligence per watt, dollar, and second would distinguish the eventual winners in AI infrastructure.
Looking towards 2027, Morgan Stanley expects SpaceX to undergo a significant shift towards robotics, mesh networks and space-based infrastructure.
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