SpaceXAI is evaluating multiple sites across Texas for a large-scale data center expansion, according to sources familiar with the plans. The proposed facility would match the 1 GW capacity of the company's Memphis hub, marking a major bet on AI compute infrastructure. The move intensifies an already heated race for power and land between AI firms and the crypto industry, both of which are hungry for massive data center capacity.
Texas site search
The company is looking at several locations in Texas, though no final decision has been made. Texas has become a prime destination for data center development due to its deregulated power grid, available land, and business-friendly policies. SpaceXAI's evaluation comes as other tech giants and crypto miners have also flocked to the state, driving up demand for electricity and construction resources.
Matching Memphis
The planned Texas data center would be built to the same scale as SpaceXAI's Memphis facility, which is already one of the largest AI data centers in the world. That 1 GW hub, announced earlier this year, is designed to train and run large language models and other AI workloads. Replicating that capacity in Texas would give SpaceXAI a second major compute cluster, providing redundancy and geographic diversity.
Infrastructure race
The expansion highlights the growing competition between AI companies and crypto miners for data center infrastructure. Both sectors require enormous amounts of electricity and specialized hardware. Crypto mining operations have long dominated the market for large-scale data centers, but AI firms have been rapidly scaling up, often outbidding miners for power purchase agreements and facility leases. SpaceXAI's Texas push is the latest sign that the AI industry is willing to invest heavily to secure the compute capacity it needs.
Neither SpaceXAI nor Texas state officials have commented on the specific sites under consideration. The company is expected to make a decision within the next few months, with construction potentially beginning in 2027.
