SpaceX Plans $74 Billion AI Campus Investment

According to SpaceX, the company plans to invest more than $74 billion in building two large-scale supercomputing campuses in Texas and Arizona to expand its artificial intelligence (AI) computing capabilities. Announced on Thursday, November 12, the projects will be located at Starbase in Texas and Cochise County in Arizona, marking another major step in the company's efforts to develop its AI business alongside its rocket and satellite operations.

The Elon Musk-led company, which went public in June, reported that its AI business accounted for more than half of its revenue in the third quarter. This highlights the growing importance of AI computing within SpaceX's overall business operations, extending beyond its traditional focus on rocket launches and Starlink satellite internet services.

SpaceX expects to invest more than $24 billion in the Starbase project in Texas and approximately $50 billion in the Arizona supercomputing campus.

The Arizona project is still awaiting approval from Cochise County authorities. SpaceX estimates that construction will create approximately 5,500 jobs, while the fully operational facility is expected to support around 1,000 permanent positions.

The company also said it is working with a local electric cooperative to support the project's power requirements. According to SpaceX, the development could reduce electricity costs for cooperative members by up to 20%. The facility is expected to use dry-cooling technology and will not rely on industrial groundwater consumption under the current plan.

However, the Arizona development has encountered local opposition. A petition opposing the project has reportedly collected approximately 2,400 signatures, calling on local officials to reject the necessary permits. Cochise County is scheduled to hold a public hearing in December to review the proposal.

Meanwhile, the Starbase facility in Texas is designed to generate its own electricity rather than depend on the public power grid. A notice issued by local authorities this week indicates that the approximately 444-acre development will include a natural gas-fired power plant and supercomputing infrastructure.

The Starbase City Commission is scheduled to review the project's property tax abatement application on December 9.

SpaceX said the Texas project has already generated more than 3,000 construction jobs. Once fully operational, the facility is expected to support more than 500 permanent positions.

Together, the two projects represent a significant expansion of SpaceX's AI infrastructure, with large-scale computing facilities and dedicated power generation expected to play an important role in supporting its future artificial intelligence operations.