SpaceX is preparing a major expansion of its artificial intelligence infrastructure, with plans to build at least one large-scale data center in Texas that could match or surpass the computing capacity of its existing facilities in the Memphis area, according to a report from The Information.
The report says the company has explored multiple locations across Texas in recent months and is weighing different approaches, including constructing new facilities from the ground up or converting an existing warehouse into a data center.
The planned Texas project would significantly expand SpaceX's AI computing footprint beyond its current Memphis-area campus, where it operates two data centers with roughly 1 gigawatt of compute capacity, according to Reuters.
The Information also reported that SpaceX has already transferred some data center employees to Texas as preparations move forward, signaling that planning has advanced beyond the early stages.
While the company has not confirmed the project publicly, reports indicate it is targeting infrastructure on a scale similar to — or larger than — its existing Tennessee operations.
AI infrastructure becomes a growing business
The expansion follows a series of AI computing agreements that position SpaceX as more than a space company. The company signed AI infrastructure deals with Anthropic in May and Google in June as it expands efforts to monetize its computing capacity.
Industry publication Data Center Dynamics also reported that SpaceX has been recruiting for data center development and construction roles in Texas, including positions in Austin, Bastrop, and Conroe, where Elon Musk has broader manufacturing ambitions.
The company has reportedly evolved from building AI infrastructure primarily for internal workloads into supplying computing resources to outside customers.
Power and construction remain the biggest hurdles
The reported Texas expansion highlights how demand for AI computing is reshaping investment priorities across the technology industry. Building gigawatt-scale data centers requires enormous spending on power, networking, cooling, and specialized AI hardware, making infrastructure a competitive advantage alongside AI models themselves.
For businesses, more AI compute capacity could improve access to cloud-based AI services as demand continues to rise. At the same time, these projects face practical challenges, including securing sufficient electricity, construction timelines, and the high cost of deploying advanced AI systems.
SpaceX has not confirmed the Texas project. If it moves forward, the campus could give SpaceX more capacity to serve outside customers while reducing its dependence on the two Memphis facilities.
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