SpaceX Plans Major AI Data Center Expansion in Texas, Report Says

SpaceX is planning a significant expansion of its data center operations in Texas, a move aimed at substantially increasing its artificial intelligence computing capacity, according to a report from The Information citing people familiar with the matter.

The expansion signals the company's growing ambitions in the competitive AI infrastructure market, building on its existing facilities to support large-scale computing needs.

Expansion Scope and Plans

The planned Texas expansion is expected to be on a similar or larger scale than the company's current hub near Memphis, which operates two data centers with approximately 1 gigawatt of compute capacity, The Information reported. SpaceX has reportedly already sent some of its data center staff to Texas in preparation for the project.

According to the report, the company is actively exploring several options for the new facilities:

• Scrutinizing multiple potential sites across Texas in recent months.
• Considering building several new data centers from the ground up.
• Evaluating the retrofitting of an existing warehouse for data center use.

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Monetizing AI Infrastructure

This move aligns with SpaceX's broader strategy to monetize its significant AI infrastructure. The company has recently secured high-profile clients for its computing resources, demonstrating a clear effort to diversify its revenue streams beyond its core launch and satellite businesses.

In recent months, SpaceX has signed key AI computing deals with major players in the artificial intelligence industry. These include an agreement with Anthropic in May and another with Google in June, underscoring the demand for the company's powerful computing capabilities.

SpaceX did not immediately respond to a request for comment on the matter, according to Reuters.