SpaceX is seeking local tax relief for a proposed $24 billion computing and power project in Texas, pairing a planned AI supercomputer with an on-site gas plant. Starbase commissioners will consider the request on December 9, 2026, according to a city hearing notice.

Two Incentive Agreements on the Table

City officials will review a property tax abatement under Chapter 312 of the Texas Tax Code, alongside a separate development agreement under Chapter 380 of Texas law. Both statutes are established Texas economic-development tools: Chapter 312 governs property tax abatements within designated reinvestment zones, while Chapter 380 allows cities to negotiate development agreements directly with private companies. The notice identifies Space Exploration Technologies Corp. as both the property owner and the applicant.

The proposed site spans approximately 444 acres between Boca Chica Boulevard and the Port of Brownsville, near the city of Brownsville. The land sits within the Cameron County Enterprise Zone, which state law recognizes as a reinvestment zone eligible for tax abatements.

City documents describe the $24 billion figure as the estimated investment for the project's initial phases, with potential expansions to follow. The notice, however, does not specify an abatement percentage, duration, expected job creation, or a final construction timetable, and those missing terms are what would determine the actual value of any relief.

The hearing is scheduled to begin at 7 p.m. on December 9 at Starbase City Hall. As a public hearing, the session gives residents a formal opportunity to comment before commissioners vote. Texas law requires at least 30 days' notice before officials may consider an abatement agreement, and approval requires a majority vote at a regularly scheduled meeting. Chapter 312 also caps municipal abatements at 10 years, subject to legal conditions.

Job Posting Points to Dedicated Gas-Fired Power

A SpaceX millwright job posting describes on-site power generation for the Starbase AI supercomputer, covering gas turbines, generators, and emissions-control equipment. That recruitment material independently supports the planned power plant beyond what the city's tax notice discloses.

The Rio Grande Valley Business Journal reported plans for 35 turbines and 748 megawatts, though those figures have not been independently verified against the original filing.

The city notice does not explain how SpaceX would use the computing capacity. It also omits power demand, water usage, and whether outside customers could access the facility, and it provides no equipment details for each construction phase. Those omissions leave the project's power footprint and fiscal terms undefined pending further disclosure.

AI Investment Extends Beyond SpaceX

SpaceX acquired xAI in February, according to an official company announcement, bringing rocket, satellite, and artificial intelligence operations under one company. CoinCentral previously covered the merger and the combined group's Bitcoin exposure.

The expansion also follows other large Texas computing deals involving cryptocurrency miners. In August, CoinCentral reported a data-center deal involving Riot Platforms linked to Anthropic. Riot's SEC filing confirms a 20-year lease for 191 megawatts, without naming the tenant. Taken together, the projects reflect a broader build-out of large-scale computing infrastructure across Texas, with dedicated power arrangements, whether owned or leased, sitting at the center of each deal.

By contrast, SpaceX proposes to own both the power plant and the computing facility, a structure that makes the pending incentive agreements central to its local development plans. No tax relief has been approved, and the commission's decision remains outstanding. The December 9 hearing is the next scheduled step, and any agreement commissioners approve would need to state the percentage, duration, and job terms currently missing from the public record.

Source: CoinCentral