Space Exploration Technologies Corp., which trades under the ticker SPCX, gained 2.25%, or $3.15, to reach $142.90 by 10:26 a.m. EST. The stock move came as the company laid out plans for a $24 billion data center near Brownsville, Texas, in the state's southern tip.

The proposal came to light as officials in the city of Starbase scheduled a public hearing on a proposed property tax break for the project, and as Texas leaders review new rules for the fast-growing data center industry. For SpaceX, the project would extend the company's South Texas presence beyond launch operations into large-scale computing infrastructure, a sector that has drawn intensifying public and regulatory scrutiny across the state.

SpaceX Plans Data Center and Gas-Fired Power Plant

The city of Starbase disclosed the proposal in a public notice issued Nov. 9. Under the plan, SpaceX would build a gas-fired power plant and a high-performance computing facility on a 444-acre site in Cameron County. According to the notice, the proposed investment would cover the initial phases of construction, and the company could expand the facility beyond the initial development in later phases. Pairing a dedicated plant with the computing campus ties the facility's electricity supply directly to the site, the resource at the center of the state's data center debate.

The proposed site sits near SpaceX's South Texas launch operations, around which the city of Starbase formed. In August, The Texas Tribune reported that SpaceX asked Brownsville to remove the property from its city limits. The company gave no public reason for the request at the time, and the November notice publicly identified the site's planned use.

Starbase Sets Dec. 9 Hearing on Proposed Tax Break

The Starbase City Commission will hold a public hearing at 7 p.m. CT on Dec. 9 to consider whether to approve a property tax abatement for the development. The proposal includes a commitment from SpaceX to fund local infrastructure. Under the proposed terms, the company would provide up to $220 million for water and wastewater projects in exchange for the proposed property tax relief. The hearing allows members of the public to comment on the agreement before commissioners act on it. Abatements are a standard economic development tool in Texas, in which local governments trade reduced property tax revenue for capital investment and infrastructure commitments.

Elsewhere in South Texas, Brownsville adopted a 90-day moratorium on data center development. The temporary measure took effect on Nov. 5 and applies to data center development within Brownsville. Local governments across the state have pursued their own restrictions while state leaders consider longer-term rules for the industry. Such temporary measures give city officials time to study impacts and weigh permanent rules while statewide policy remains unsettled.

Texas Leaders Weigh Data Center Restrictions

A poll conducted by the University of Texas and the Texas Politics Project found broad opposition to data centers among registered Texas voters. The June 24 release showed that 56% of registered voters opposed construction in their communities, a share that included 42% who strongly opposed local development. Water and power demand have fueled concerns about the effect of data centers on household utility bills. Large computing facilities draw substantial electricity to run and cool servers, and a project of this scale would concentrate that demand on a single Cameron County site.

Some municipalities have already moved to restrict the industry. On June 16, the San Marcos City Council changed its zoning rules, an ordinance that effectively bars data center development within the city.

At the state level, outgoing Gov. Greg Abbott directed regulators to address public concerns and ordered an audit of proposed projects. He also called for a statewide moratorium as Texas officials review the industry's growth. Governor-elect Gina Hinojosa told CNN on Nov. 5 that companies must show how their projects would benefit Texans. For the Cameron County project, the Dec. 9 hearing is the nearest scheduled decision point, and the outcome of the statewide review will shape the rules under which any facility built there would operate.