SpaceX's $74 Billion Data Center Plan Faces Backlash

Nov 13, 2026

SpaceX is pushing ahead with massive data center projects in Texas and Arizona even as voters just signaled they don't want this kind of development, and it's a mixed bag for the communities involved.

  • SpaceX plans to spend over $70 billion on two huge data centers, one tied to its company town in Texas and one in rural Arizona, and is promising cheaper electricity and water upgrades to win over skeptical locals.
  • Past projects tied to Musk's companies have relied on gas turbines for power instead of clean energy, raising fears of pollution and smog even if electric bills stay flat.
  • Polling shows most Republicans and Democrats alike don't want new data centers near them, and dozens of local votes across the country have already rejected them.
  • Texas just elected a Democratic attorney general who says he'll scrutinize a possible SpaceX-Tesla merger and Musk's cozy ties to the outgoing governor, a sign the regulatory environment there may get tougher.
  • Lawmakers on both the left and right, including some Republicans, are now pushing for a pause on new data center construction and tighter AI rules.

Outlook: Expect a fight between local and political pushback and the economic pressure to keep building AI infrastructure, with Texas regulators now positioned to dig into Musk's business dealings for the first time in years.

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