SpaceX files $24B Starbase plan with 748 MW gas plant to power xAI compute

SpaceX has filed plans for a $24B development at Starbase, Texas, that pairs a supercomputer complex with a dedicated 748 MW natural-gas power plant running 35 turbines. xAI, now owned by SpaceX and rebranded SpaceX AI in some reporting, would be the main consumer of that compute.

On-site generation is how AI builders route around grid interconnection queues that can take years. Local turbines, including aeroderivative jet-engine-style units, can be installed far faster, at the cost of emissions and local permitting fights. The Arkansas coverage notes several AI firms are now eyeing jet engines for quicker power.

The plan echoes the industry's compute scramble. Meta warned regulators that opposition to data centers threatens its expansion, and Microsoft says Azure demand still exceeds supply with a $677B backlog. xAI's approach of owning its power is the most aggressive version of vertical integration in the field.

On the product side, Grok subscribers reported weekly token allocations running out in about 14 hours, and fixes were rolled out overnight, while xAI touts token-efficiency upgrades for Grok Bot. Musk denied a reported $10B raise at a $200B valuation. Watch for permitting decisions and environmental challenges to the gas plant.