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TL;DR
SpaceX says it is advancing AI computing projects near Starbase, Texas, and in Cochise County, Arizona, with more than $74 billion in planned investment. The Texas site would generate its own electricity; Arizona’s proposed campus would draw up to about 6 gigawatts from the grid and use dry cooling. Local approvals are pending, and key details—including Texas facility water use and Arizona’s electricity arrangements—remain unresolved.
SpaceX said on November 12 that it is advancing two AI computing campuses in Starbase, Texas, and Cochise County, Arizona, describing them as more than $74 billion in planned U.S. investment. The projects would require major energy infrastructure: Texas would have an on-site gas-fired power plant, while Arizona’s campus is proposed to draw up to about six gigawatts from the electric grid. Both projects still need local approvals.
In Texas, SpaceX says it plans to invest more than $24 billion in computing infrastructure on an approximately 444-acre site near the Port of Brownsville. A Starbase city notice describes the proposal as a gas-fired power plant and supercomputing facility, with an estimated $24 billion in capital investment for initial phases and possible later expansion. SpaceX says the facility will generate its own electricity rather than draw from the public grid.
Local outlet The 956 Report, citing an air registration SpaceX filed with the Texas Commission on Environmental Quality, reported plans for a temporary setup of 35 natural-gas turbines totaling about 748 megawatts, followed by eight larger turbines totaling about 708 megawatts. Those figures come from the outlet’s account of the filing; the city notice itself does not state the plant’s capacity. SpaceX says the project has supported more than 3,000 construction jobs so far and could employ over 500 people permanently when operating.
The Arizona proposal is filed with Cochise County by Tombstone Resources L.L.C. and covers about 747 acres near Cochise and U.S. Highway 191. SpaceX’s project page identifies the plan as its own. The application describes up to nine computing buildings, each about 493,000 square feet, built in four phases. It estimates about 1,500 megawatts for the first phase and approximately six gigawatts at full build-out, alongside a 24-gigawatt-hour battery system. The campus would receive electricity through Sulphur Springs Valley Electric Cooperative and Arizona Electric Power Cooperative, with a utility-owned substation on site.
The Power And Water Needs Behind SpaceX’s AI Campus Plans
SpaceX proposes two AI campuses in Texas and Arizona, with major power needs and local approvals still ahead.
Two sites, different power plans
The proposals put large energy infrastructure at the center of local review.
- Would generate electricity on site with a gas-fired plant.
- Facility water use has not been disclosed.
- Would draw power from the grid, up to about 6 gigawatts.
- Proposed dry cooling without cooling towers.
What the plans specify
Arizona’s application lays out a phased campus and estimates its resource needs.
Up to nine computing buildings, with construction planned across four phases.
Estimated demand rises from about 1,500 megawatts in phase one to about 6 gigawatts at full build-out.
The application estimates 7 to 10 acre-feet of annual water use, mostly for staff.
Local details remain open
Plans and estimates have not yet become operating results.
Water demand unclear
SpaceX has not disclosed how much water the computing operation itself would use.
Grid arrangements pending
Utility and regulatory approvals for the proposed electricity supply remain unsettled.
Approvals still needed
Local hearings are scheduled for December 9, 2026.
Power Demand Shapes Both Campus Plans
The proposals show how the expansion of AI computing can bring large energy projects into communities far from major urban data-center hubs. Their power arrangements differ sharply: the Texas facility would generate electricity on site, while the Arizona campus would rely on a grid connection sized for a potential six-gigawatt load. That makes local infrastructure, utility planning and environmental review central to whether the projects can proceed as described.
Water is another local concern, but the available details are uneven. SpaceX says it has committed $220 million for Brownsville and Cameron County water and wastewater infrastructure, including $40 million it says it has already provided. The projects are intended to add around 20 million gallons per day from sources independent of the Rio Grande. The company has not disclosed how much water the Texas computing operation itself would use.
For Arizona, the application estimates 7 to 10 acre-feet of water a year at full build-out, mostly for staff, and says the campus would use dry cooling without cooling towers. The same filing compares that amount with 400 to 600 acre-feet annually for a center-pivot field on a 160-acre quarter section. These are estimates in the project application, not an independent assessment of actual operating use.
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From Orbital Computing to Ground Sites
SpaceX’s campus plans follow its acquisition of xAI, announced on February 2, 2026. At the time, the company argued that terrestrial electricity demand for AI could burden communities and the environment, and presented computing in orbit as part of its response. The new proposals place large computing sites on the ground, though SpaceX says the Texas facility will also help develop and test technologies for future space-based computing.
The projects’ stated purposes include training advanced AI systems. SpaceX says that work could support areas including medical research, emergency response, manufacturing and national security. Those are the company’s descriptions of intended uses, not documented outcomes. Reuters reported that SpaceX’s AI segment generated more than half of the company’s revenue in the third quarter of 2026, underscoring the business importance of computing capacity to the company.
The proposals also differ in how they appear in local records. Starbase’s notice identifies the Texas project as a gas-fired power plant and supercomputing facility. The Arizona county application names Tombstone Resources rather than SpaceX; the connection is established by SpaceX’s own project page and Tombstone Resources’ statement about a community town hall hosted by SpaceX.
“Together, they represent more than $74 billion in planned American investment.”
— SpaceX
Approvals and Operating Details Remain Open
Neither campus has received all the local approvals needed to proceed. The Texas computing facility’s own water use has not been disclosed, and the Starbase notice does not give the power plant’s capacity. The reported turbine configuration comes from The 956 Report’s account of an air registration, not from the city notice or SpaceX’s announcement.
In Arizona, the application sets out a proposed grid connection, but it remains unclear whether the relevant utility and regulatory arrangements will be approved as needed. SpaceX has also said local cooperative members could see lower power bills, but the proposal’s ability to deliver those reductions—and the role of Arizona’s utility regulator—remains unsettled. The projected six-gigawatt demand, water use and employment figures are plans or estimates, not measured operating results.
Costs, construction schedules, final project designs and the conditions attached to local decisions are also not settled in the material reviewed. The stated investment totals describe planned spending, not money already spent.
December 9 Hearings Will Test Plans
On December 9, 2026, the Cochise County Planning and Zoning Commission is scheduled to hold a hearing on the Arizona proposal. The Starbase City Commission is also scheduled to consider a property-tax abatement related to the Texas project. Those proceedings will provide an opportunity for local officials and residents to examine the proposals, although the supplied materials do not establish that the meetings will resolve every required approval.
Further details to watch include the outcome of the county review, the terms of any Starbase tax decision, and whether the Arizona electricity arrangements receive the necessary approvals. Additional filings or company disclosures may also clarify Texas power-plant plans and water demand at both sites.
Key Questions
What did SpaceX announce?
SpaceX said it is advancing two AI computing campuses: one near Starbase and the Port of Brownsville in Texas, and another in Cochise County, Arizona. It describes their combined planned investment as more than $74 billion.
How will the two campuses get electricity?
SpaceX says the Texas site would generate its own electricity with a gas-fired plant. The Arizona plan calls for grid power delivered through local electric cooperatives, with demand estimated at about six gigawatts at full build-out.
How much water would the campuses use?
The Arizona application estimates 7 to 10 acre-feet per year at full build-out, mostly for staff, and proposes dry cooling. SpaceX has not disclosed the Texas computing facility’s own water use.
Have local officials approved the projects?
Not fully, based on the available material. Hearings and decisions are scheduled for December 9, 2026, including a Cochise County planning hearing and consideration of a Starbase property-tax abatement.
What remains uncertain about the Arizona power plan?
The proposal describes a grid connection and promises potential lower bills for cooperative members, but the electricity arrangements and bill impacts have not been confirmed as approved. The project’s final schedule and operating details are also not settled.
Source: ThorstenMeyerAI.com
