Elon Musk's SpaceX is planning to build a $24 billion data center in South Texas as state leaders and lawmakers consider how to regulate the industry.
On Nov. 9, the city of Starbase — the incorporated company town built around SpaceX's South Texas launch site — notified the public that the company intends to build a $24 billion "gas-fired power plant and super-compute facility" next to Brownsville, Texas.
The multibillion-dollar investment, according to the notice, is set to cover the initial phases of the project, which could include future expansions.
The project would be constructed on 444 acres in Cameron County, Texas. In August, the Texas Tribune reported that SpaceX asked the city of Brownsville to deannex the land for reasons it did not
make public at the time.
In exchange, the company would fund up to $220 million in water and wastewater projects.
The public hearing is set for 7 p.m. CT on Dec. 9, when the Starbase City Commission will consider approving a property tax abatement.
This development comes as Texas local leaders try to temporarily regulate the industry while state lawmakers and leaders eye more permanent solutions.
The current state, future of data centers in Texas
A poll from the University of Texas/Texas Politics Project, released June 24, found that 56% of Texas registered voters oppose building data centers in their communities, with 42% strongly opposed. The opposition stems from Texans' worries about how much power and water the centers need to operate and how they will affect their utility bills.
This has led several cities and counties to try to take matters into their own hands by issuing moratoriums. On June 16, the San Marcos City Council adopted a new ordinance amending its zoning rules to effectively ban data center development in the city, citing concerns about the strain these projects would place on local water and energy resources.
Recently, the city of Brownsville adopted a 90-day moratorium that went into effect on Nov. 5.
Outgoing Texas Gov. Greg Abbott faced public backlash over the rapid spread of data centers in the state during the election, which led him to direct state regulators to address some of those concerns, impose a statewide moratorium and order an audit of proposed projects.
However, Abbott lost his reelection bid, and data centers face tougher headwinds under Governor-elect Gina Hinojosa, who told CNN on Nov. 5 that the state is done with data centers unless the companies behind them prove they will benefit Texans.
"It is not that I hate data centers. I hate the way they are taking advantage of Texas, and that stops when I'm governor," Hinojosa said, adding she wants Texans to "have a seat at the table to decide if and how these data centers come into their communities."
Several state lawmakers have also filed bills ahead of the 90th legislative session, set to start Jan. 12, that would regulate data centers in the state.
Mateo Rosiles is the Texas Connect reporter for USA TODAY and its regional papers in Texas, based in Austin. Got a news tip for him? Email him at mrosiles@usatodayco.com.
This article originally appeared on USA TODAY: SpaceX eyes $24B data center near in South Texas as state weighs rules
