Key Highlights
- SpaceX seeks to establish at least one massive data center facility in Texas with 1 gigawatt computing power
- The proposed Texas site would rival or surpass the company’s Memphis operations, which houses two active data centers
- Multiple Texas locations are under evaluation, with options ranging from ground-up construction to warehouse conversions
- Data center personnel have already been transferred to Texas as preparations advance
- SPCX shares declined 0.39% to $123.06 during Wednesday trading
SpaceX is advancing with strategies to establish at least one significant data center in Texas, based on a Wednesday report from The Information.
Space Exploration Technologies Corp., SPCX
The proposed installation would aim for approximately 1 gigawatt of computing power. This capacity would equal or surpass SpaceX’s current Memphis-region operations, where two data centers are already functioning.
The aerospace company has been evaluating several prospective locations throughout Texas over recent months. Under consideration are both constructing new purpose-built facilities and converting an existing warehouse structure.
SpaceX has already initiated the relocation of certain data center personnel to Texas, indicating the project has progressed beyond preliminary planning phases.
SPCX shares were down 0.39% at $123.06 when markets closed Wednesday. The Nasdaq composite index also declined, dropping 0.31% during the session.
Texas Initiative Follows Strategic AI Partnerships
The Texas expansion follows SpaceX securing AI computing agreements with Anthropic in May and Google in June. These partnerships represented a strategic shift to generate revenue from its AI capabilities beyond traditional launch services and satellite operations.
The company is simultaneously developing an expansive 11 million-square-foot “Gigasat” complex in Bastrop, Texas. This ambitious project aims to produce orbital AI data centers utilizing solar power, minimizing reliance on terrestrial electrical infrastructure.
Market observers are also monitoring potential negotiations with the Pentagon regarding compute capacity provision, which could establish a government-backed revenue channel for its expanding AI operations.
Upcoming Earnings and Lock-Up Expiration
SpaceX rallied 3% on Tuesday, ending a seven-session decline, following confirmation that its inaugural earnings announcement is scheduled for August 4. This date carries significance beyond standard financial reporting.
The earnings disclosure will activate the initial phase of SpaceX’s post-IPO lock-up release structure. As many as 911.5 million shares, constituting 20% of restricted stock, could become tradable starting August 6.
An additional provision exists: should the stock close at minimum 30% above its IPO price during five of the ten trading sessions preceding the earnings release, an extra 10% of restricted shares could also unlock, according to CNBC.
Regarding launch operations, SpaceX is preparing a Falcon 9 mission transporting 24 Starlink satellites following a previous scrubbed attempt. A Starship launch is also on the calendar for Thursday after an engine ignition problem triggered an earlier cancellation.
SpaceX has not provided a response to Reuters’ request for comment regarding the Texas data center initiative.
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