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McALLEN — SpaceX plans to build a $24 billion data center and power plant just outside Brownsville on property that the city had just deannexed earlier this year at the company’s request, circumventing Brownsville’s data center moratorium that went into effect last week.
On Monday, the city of Starbase, which later annexed the land where the project will be built into its municipal limits, informed the public that SpaceX was building a $24 billion “gas-fired power plant and supercomputing facility.”
The $24 billion investment is expected to cover initial phases of the project that could include future expansions, according to Monday’s notice which says Starbase city commissioners are expected to hold a public hearing in December at which they will consider tax breaks for the project.
The 444.45 acres of land on which the project will be located were the subject of local review over the summer, when SpaceX asked the City of Brownsville to deannex that land. In exchange, the company offered to finance $220 million for municipal water and wastewater projects.
A SpaceX representative did not provide details on why the company wanted the land, located near the Brownsville Port outside Brownsville city limits, but the company pressured the city to quickly approve deannexation or the $220 million would not be on the table. The city agreed, but the move drew widespread condemnation from residents and environmental activists who believed the city was allowing SpaceX to grab more land in the area.
Shortly after the city approved the deal, speculation circulated online that SpaceX planned to build a data center on the property and wanted to get around a data center moratorium that was moving forward in Brownsville.
This speculation appears to have been correct all along.
In response to this news, the South Texas Environmental Justice Network announced a protest against the project, arguing that the new facilities would pollute the air, consume water and increase residents’ energy bills.
Other residents responded positively, seeing the project as a source of additional job creation.
“A lot of people need jobs in our community and SpaceX has helped provide those jobs,” said Brownsville resident and teacher Janie Melendez.
She previously served on the executive committee of the Republican Party of Texas, but said her political views do not influence her views on data centers and SpaceX.
“Since SpaceX moved in, the value of my house has tripled,” she said. “But I’m one of those (people) who tries to find balance in everything.”
SpaceX did not respond to questions about the project.
What the future holds for data centers in Texas
However, a majority of Texans oppose the construction of data centers, which have received a wave of resistance across the state due to concerns about the amount of electricity and water they need to operate at a time when utility bills remain high and fears of water shortages are increasing. In response to public backlash, several communities have issued temporary moratoriums on data centers.
As criticism of these facilities grew, Gov. Greg Abbott in August ordered power grid operators to suspend requests for data center connections to the grid until the data centers could be audited. However, not all data centers rely on the state’s power grid and could therefore continue to make progress by providing their own electricity.
The gas-fired power plant that SpaceX plans to build could power its data center to avoid connecting to the state’s power grid.
Abbott also ordered the Texas Commission on Environmental Quality to stop issuing permits for data centers, although critics say some permits have continued to move forward in the permitting process.
Data center developers could face stronger headwinds under Gov.-elect Gina Hinojosa, who said she would ban all data center approvals until state lawmakers can pass laws “to protect Texans,” she said in a video posted on X.
Brownsville approved its own 90-day moratorium, which went into effect last week, temporarily suspending data center applications within the city and its extraterritorial jurisdiction. If the 444.45-acre tract had remained within the Brownsville city limits, the SpaceX project likely would have had to find another location.
The city of Brownsville said it stands by its decision to remove the annexation of the property, which was based on “the information and circumstances presented at the time,” the city said in a statement. This included the location of the property, municipal service considerations and potential long-term benefits to Brownsville.
The city further emphasized that the land was privately owned and its sale to SpaceX was a transaction between private parties.
The $220 million the city received for deannexation will fund critical water infrastructure that the city says will help ensure its water supply keeps pace with its future growth.
“The City recognizes the concerns raised regarding data center development and takes these concerns seriously,” the city said. “He remains committed to assessing these concerns and protecting water resources, assessing infrastructure impacts, and ensuring responsible growth that serves the long-term interests of Brownsville.” »
Additionally, the city assured that any future deannexation requests would be independently evaluated under state law and that the city commission would consider the circumstances and legal requirements before taking action.
“Residents should be assured that their concerns about data center development, water resources, energy consumption and responsible growth are being taken seriously,” the city said. “Our responsibility is to ensure that Brownsville’s growth is intentional, that residents’ interests remain a priority, and that decisions about the future of our community are made with transparency, accountability and careful consideration.
Reporting in the Rio Grande Valley is supported in part by Methodist Health Ministries of South Texas, Inc.
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