- SpaceX plans to invest about $24 billion in an AI computing complex and gas-fired power plant in Starbase, Texas.
- The proposed power plant would have about 748 MW of capacity and 35 turbines.
- SpaceX shares fell 12.52% over the two trading sessions after the November 3, 2026, midterm elections before partially recovering.
Elon Musk’s SpaceX plans to invest about $24 billion to build a supercomputer and its own power plant in Starbase, Texas. The project would combine AI computing infrastructure with about 748 MW of on-site generation, while requested tax incentives are due to be considered at a public hearing on December 9, 2026.
An official notice from municipal authorities says the project would include a gas-fired power plant with 35 turbines. SpaceX expects to receive tax incentives for the development.
Musk merged SpaceX with his AI startup xAI in February 2026. The combined business was valued at about $1.25 trillion at the time of the deal.
Political and regulatory uncertainty
The project’s rollout could become more complicated following the November 3, 2026, U.S. midterm elections, when Democrats took control of both chambers of Congress and won several gubernatorial races.
Democrat Gina Inokhosa was elected governor of Texas. During the campaign, she opposed unchecked expansion of data center networks because of their impact on power supplies and water resources.
In September, incumbent Republican Governor Greg Abbott ordered a pause in permits for new data centers pending a review of their effects on the state’s infrastructure.
It remains unclear whether potential new restrictions would affect the SpaceX project. Although the company plans to supply the computing complex with its own electricity generation, that approach does not necessarily exempt the development from environmental or other regulatory requirements.
Shares fall after midterm elections
The Democratic victories heightened investor concerns about tighter regulation of the AI sector. SpaceX and Tesla shares fell, and the combined decline in their market capitalization over the week may have exceeded $380 billion.
SpaceX shares, traded under the ticker SPCX, dropped 12.52% over the two trading sessions following the election before partially recovering by the end of the week, according to TradingView data.
Musk’s political spending was another factor. The entrepreneur directed more than $445 million toward supporting candidates in the midterm elections, but Republicans still lost control of Congress, MarketWatch reported.
Source: Incrypted
