Amid opposition to data centers, Musk doubles down: SpaceX (SPCX.US) plans to build a $24 billion computing center and gas power plant in Texas.

According to Golden Ten Data APP, a public hearing notice published on the Starbase website states that SpaceX (SPCX.US) plans to construct, own, and operate a gas-fired power plant and a supercomputing facility in its company town of Starbase, Texas.

The documents show that the initial investment for this project is expected to be $24 billion. The notice indicates that the engineering work may be implemented in multiple phases and could include future expansions. SpaceX has applied for property tax exemptions related to the project. City commissioners will review the approval of tax exemptions and the development agreement at the meeting on December 9.

This development sends the latest signal that CEO Elon Musk is driving SpaceX toward full vertical integration across the natural gas supply chain. Natural gas is currently the primary source of power for data center operators to ensure project operation and production; additionally, SpaceX plans to use deeply purified, ultra-cold processed natural gas as fuel for some rocket launch missions.

As early as September this year, SpaceX proposed to build its own gas pipeline in Florida to deliver fuel to Starship rockets at Cape Canaveral. The company is also recruiting natural gas traders in both Starbase and Cape Canaveral, no longer solely relying on external logistics providers, in order to match the continuously growing demand for fuel and electricity.

Starbase City will officially be incorporated in 2025, and currently, hundreds of SpaceX employees and their families reside there. According to the announcement, the proposed site for the project is within the city limits of Starbase, covering 444 acres, located to the east of Brownsville.

Power demand from data centers and new factories is surging, driving up the need for new gas-fired power plants, while Musk has always advocated for the vertical integration model. SpaceX also plans to build a supporting gas-fired power plant to supply electricity for this project and for the large-scale semiconductor manufacturing base jointly developed with Tesla (TSLA.US) in Grimes County, outside Houston. Constructing its own power plant allows SpaceX to avoid waiting years to connect the project to Texas’s main power grid.

The notice does not specify the scope or duration of any tax exemption, nor does it provide details regarding the power plant's installed capacity or the scale of computing operations.

However, Musk's plan for this supercomputing center and associated gas infrastructure may encounter obstacles.

Currently, there is rising opposition to data centers across the United States: Following the midterm elections, Democrats now control the U.S. Congress and the Texas Governor's office. Some Democratic candidates campaigned on halting new projects; incoming Texas Democratic Governor Gina Hinojosa included regulation of new data center construction as part of her platform. Across the country, electricity price increases and environmental controversies over data centers have sparked protests, including those aimed at SpaceX’s data center cluster in Memphis. It is reported that voters rejected 40 out of 41 local ballot measures related to data centers.