SpaceX plans $24 billion data center on land Brownsville removed from city limits
A Tesla Cybertruck vehicle drives past the SpaceX Starbase industrial complex and rocket launch facility in Starbase, Texas, US, on Thursday April 30, 2026. SpaceX's spaceport put Brownsville on the map, but locals fear being priced out by newly rich
SpaceX plans to build a $24 billion data center outside of Brownsville, on property the city de-annexed earlier this year at the request of the company.
The city of Starbase published a public notice that states the city commission will consider tax breaks for SpaceX to construct a $24 billion "gas-fired power plant and super-compute facility." The notice states the data center will be built on the 444-acre piece of land that was de-annexed by Brownsville and later annexed by Starbase.
The city of Brownsville put a 90-day data center moratorium in place on Nov. 4.
In response to the notice, South Texas Environmental Justice Network organized a protest outside the Cameron County courthouse asking the county to oppose not only the SpaceX data center, but all data centers in the Rio Grande Valley "because they would pollute our air, use up water and increase our energy bills."
SpaceX asks Brownsville to de-annex 444 acres in exchange for $220M in water and wastewater funding
The backstory:
Earlier this year, SpaceX offered $220 million to the city of Brownsville to fund water and wastewater projects.
SpaceX made the proposal under the condition the city's decision was made quickly, or else the company would go elsewhere. At the time, SpaceX did not say why they wanted the land removed from the city limits.
SpaceX pledges up to $220M for Brownsville water projects after land de-annexation
SpaceX plans to invest up to $220 million in water and wastewater projects for the growing city.
During the Nov. 4 meeting that implemented the Brownsville data center moratorium, citizens did not let the commission forget about their deal with SpaceX.
What they're saying:
"The moratorium will not make us forget that you de-annexed 444 acres of land to SpaceX, which is now building a data center," Jacqueline Morales, an attorney in Brownsville, said. "This community has been sounding the alarm for months, only for this commission to ignore us and pretend like it knows better."
Becca Hinojosa from STEJN called on the commissioners to ask questions about the project and said Cameron County should also ask questions about the data center project.
"Do not allow Starbase to become Elon Musk's secret city," she said. "SpaceX is actively using land grabs to take a chunk of land on Boca Chica, and they're actively building what looks like a polluting hellscape on our pristine ecosystem."
Elections bring uncertainty to data centers in Texas
After the major governmental shake-up in Texas following the midterm election, the future of data centers in the state remains unclear.
State Sen. Joan Huffman introduced legislation that would repeal sales tax exemptions for data centers.
Governor-elect Gina Hinajosa has also signaled that she would support stronger regulations on data centers and more protections for residents.
Other state lawmakers have proposed removing other state and local tax breaks and requiring all agreements between data centers and municipalities to be made publicly available.
What's next:
Brownsville's data center moratorium runs for 90 days and can be extended for another 90 days.
The city of Starbase will hold its public meeting about the proposed tax breaks for SpaceX on Dec. 9.
The Source: Information in the Brownsville data center moratorium comes from a Nov. 4, 2026, commissioners meeting. Information on the proposed data center from SpaceX comes from a public notice filed by the city of Starbase. Information on data centers in the state comes from previous Fox Local reporting.