$74 Billion SpaceX Data Center Projects to Transform AI Infrastructure in Arizona and Texas

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SpaceX data center projects

SpaceX data center projects worth more than $74 billion will establish two major artificial intelligence computing campuses in Arizona and Texas. The developments will expand the company’s computing infrastructure while creating substantial demand for buildings, electricity generation and supporting utilities. SpaceX plans to invest approximately $50 billion in Cochise County, Arizona, and more than $24 billion at Starbase, Texas.

Together, the investments represent one of the largest proposed private-sector commitments to AI infrastructure construction in the United States. Moreover, the developments will integrate specialized computing facilities with dedicated energy systems. Their delivery will depend on planning approvals, electricity infrastructure, environmental considerations and coordination with local authorities.

SpaceX data center projects introduce a 6GW construction program in Arizona

The larger development will occupy approximately 747 acres near Willcox Playa in Cochise County. The site lies approximately 80 miles east of Tucson. SpaceX plans to develop the Cochise Supercomputer Campus through four construction phases.

According to the development application, the campus will contain up to nine data center buildings. Each building will measure approximately 493,000 square feet. This would deliver approximately 4.44 million square feet of computing infrastructure.

The company intends to develop the facility in four phases, each targeting 1.5 gigawatts. Consequently, the completed campus could require approximately 6GW of electricity. This demand makes power infrastructure a central component of the construction program.

SpaceX also plans to invest approximately $3.6 billion in electricity infrastructure. Initial grid improvements could require approximately $500 million. The proposed upgrades will support the first construction phase and subsequent computing capacity.

Furthermore, the development application outlines a 24GWh battery energy storage system. The installation will help stabilize electricity supply during changing computing demand. The campus will also require substations, transformer equipment and connections to existing electricity infrastructure.

The proposed location sits beside Arizona Electric Power Cooperative’s Apache Generating Station. This proximity could support electricity infrastructure development. However, the project still requires substantial grid upgrades before reaching its intended capacity.

SpaceX proposes dry-cooling technology to manage heat generated by computing equipment. The company says the campus will not require industrial groundwater extraction. Nevertheless, the proposal has attracted concerns about environmental impacts and regional infrastructure demand.

The development could create approximately 5,500 construction jobs and 1,000 permanent positions. SpaceX also says the project could reduce electricity bills for cooperative members by up to 20%.

However, Cochise County must approve the development’s special-use authorization. A petition containing approximately 2,400 signatures opposes the proposal. County officials scheduled a public hearing for December 9, 2026. Construction could begin in March 2027, subject to the necessary approvals.  These plans form part of the broader expansion of the US data center market, alongside Equinix’s proposed $835 million Dallas 12 facility in West Dallas.

SpaceX data center projects integrate computing and power generation in Texas

The second development will occupy approximately 444 acres in Starbase, Cameron County, near Brownsville. SpaceX expects to invest more than $24 billion in the initial development phases.

Unlike Arizona, the Texas campus will integrate a gas-fired power plant with its supercomputing facilities. This arrangement will allow the development to generate electricity independently rather than rely on the public grid.

The Starbase project follows a controversial land-use agreement involving Brownsville. Earlier this year, Brownsville de-annexed the 444-acre property before Starbase incorporated it into its municipal boundaries.

In exchange, SpaceX committed $220 million towards water and wastewater infrastructure improvements. The investment will support Brownsville and Cameron County’s wider infrastructure requirements.

The company has also provided $40 million to the Brownsville Public Utilities Board, according to SpaceX. The wider water infrastructure commitment aims to provide approximately 20 million gallons of additional daily water capacity.

However, the development faces regulatory and environmental scrutiny. Brownsville introduced a 90-day moratorium on new data center applications. The Starbase development falls outside the affected municipal jurisdiction.

The South Texas Environmental Justice Network has raised concerns about emissions, water consumption and electricity costs. Meanwhile, other residents view the investment as an opportunity for employment and economic development.

SpaceX reports that the Texas project has generated more than 3,000 construction jobs. Once operational, the development could support more than 500 permanent positions.

The Starbase City Commission will consider a proposed property-tax abatement agreement on December 9, 2026. The decision will influence the project’s development arrangements and financial incentives.

The two developments demonstrate how AI infrastructure increasingly requires integrated construction and energy investment. Their delivery will involve specialized buildings, electrical systems, cooling installations and supporting municipal infrastructure.

Arizona presents a particularly significant grid infrastructure challenge because of its proposed 6GW electricity requirement. Texas, meanwhile, offers a different approach through dedicated natural-gas-fired generation.

Nevertheless, both developments must address regulatory requirements and local concerns before advancing fully. Their eventual completion could significantly expand SpaceX’s computing capacity and reshape large-scale data center construction.

SpaceX data center projects

Project Fact Sheet

Name: SpaceX Artificial Intelligence Supercomputing Campuses.

Total estimated investment: More than $74 billion.

Locations: Cochise County, Arizona, and Starbase, Texas, United States.

Developer and investor: SpaceX.

Arizona investment: Approximately $50 billion.

Texas investment: More than $24 billion.

Arizona project: Cochise Supercomputer Campus.

  • Site area: Approximately 747 acres.
  • Building program: Up to nine data center buildings.
  • Individual building area: Approximately 493,000 square feet.
  • Total proposed building area: Approximately 4.44 million square feet.
  • Computing capacity: Approximately 6GW at full development.
  • Construction program: Four phases targeting 1.5GW each.
  • Energy infrastructure: 24GWh battery energy storage system and electricity grid upgrades.
  • Power infrastructure investment: Approximately $3.6 billion.
  • Initial grid upgrade allocation: Approximately $500 million.
  • Cooling system: Dry-cooling technology.
  • Planning authority: Cochise County.

Texas project:

  • Location: Starbase, Cameron County.
  • Site area: Approximately 444 acres.
  • Energy infrastructure: Dedicated natural-gas-fired power plant.
  • Water infrastructure commitment: $220 million.
  • Planning authority: Starbase City Commission.

Expected Arizona construction commencement: March 2027, subject to approvals.

Project Team

Developer, investor and project sponsor: SpaceX.

Arizona project:

Texas project:

  • Location and municipal authority: City of Starbase.
  • Power generation developer: SpaceX.
  • Water infrastructure beneficiary: City of Brownsville.
  • Water utility: Brownsville Public Utilities Board.
  • Regional infrastructure beneficiary: Cameron County.

Environmental and planning oversight: Relevant county and municipal authorities.

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