SpaceX plans Texas data center expansion to boost AI

Elon Musk's space company SpaceX is planning to expand its operations in the United States by preparing for at least one new large-scale data center in Texas.

The Information reported on Wednesday that the planned expansion would significantly increase the company's artificial intelligence computing capacity. SpaceX currently operates two data centers at its existing Memphis, Tennessee hub, known as the "Colossus" data center campus, which holds about one gigawatt of compute capacity. The proposed Texas operations could match or exceed the gigawatt-scale capacity of the Memphis sites, which are equipped with hundreds of thousands of Nvidia GPUs.

SpaceX has explored several potential data center locations across Texas in recent months to support its expansion goals. Company leaders are considering multiple options, including building several brand-new data centers from scratch as well as retrofitting an existing warehouse facility. Preparation for the project is already underway, as the space technology firm has sent some of its existing data center staff to Texas.

The planned facilities follow recent commercial agreements signed by SpaceX to expand its computing services. The company signed AI computing deals with Anthropic in May and Google in June as part of broader efforts to monetise its AI infrastructure. Official confirmation regarding the Texas expansion plans from chief executive Elon Musk remains pending.