Wednesday, November 11, 2026 The Patriot Focus

The Patriot Focus

Hard-hitting. Independent. Unfiltered.

Business

Musk's SpaceX Seeks Tax Breaks for $24B Data Center in Starbase, Texas

SpaceX is asking the tiny town of Starbase, Texas, for a property tax abatement on a $24 billion gas-fired data center and power plant, with a public hearing set for Dec. 9 before a three-person commission that includes two SpaceX executives. The company is also pursuing state air permits for 35 mobile gas turbines producing roughly 750 megawatts.

Musk's SpaceX Seeks Tax Breaks for $24B Data Center in Starbase, Texas
Elon Musk's SpaceX is asking local officials in Starbase, Texas, for a property tax abatement and a related economic development agreement tied to a planned $24 billion data center and gas-fired power plant, according to a public hearing notice posted Friday. The notice, published by the city of Starbase, sets a Dec. 9 hearing before the town's three-person city commission. Two of those three commissioners are also SpaceX executives, a setup that gives the company's own employees a direct vote on the subsidy request. According to the notice, SpaceX intends to "construct, own, and operate a gas-fired power plant and super-compute facility" in the area. The project carries a price tag of $24 billion. Separately, SpaceX has applied to the Texas Commission on Environmental Quality for air permits covering 35 mobile gas-fired turbines in the same area. That application, filed in September and first reported by local journalist Joshua Moroles, states the turbines would generate roughly 750 megawatts of power. The timing is notable. The subsidy review comes just weeks before Democratic Gov.-elect Gina Hinojosa takes office in January. Hinojosa has been a critic of the state's rapid data center buildout, and her administration could take a harder line on the power demands and environmental footprint of such projects. Starbase is the small South Texas community where SpaceX bases its Starship rocket operations. The town's government is closely intertwined with the company, and the Dec. 9 hearing will test how much local taxpayers are willing to forgo in property tax revenue to keep a massive private project in their backyard. For residents, the proposal raises familiar questions: how much tax revenue the town would give up, what environmental impact the gas turbines and power plant would have, and whether the promised economic development justifies the cost. The public hearing is scheduled for Dec. 9.

More