The proposed expansion would significantly increase SpaceX’s computing capacity beyond its current operations in the Memphis area, where the company runs two data centers with roughly 1 gigawatt of combined computing power.
The move comes as demand for advanced AI computing infrastructure continues to grow, with technology companies investing heavily in data centers capable of supporting large-scale artificial intelligence models and services.
According to the report, SpaceX has been evaluating several possible locations across Texas in recent months as it explores options for expanding its AI operations. The company is considering constructing multiple new data centers from the ground up, while also looking into converting an existing warehouse facility for computing use.
SpaceX did not immediately respond to a Reuters request for comment regarding the reported expansion plans.
The company is reportedly targeting a Texas development that would match or exceed the scale of its existing Memphis-area facilities. As part of preparations, SpaceX has already relocated some data center employees to Texas, according to The Information.
The planned expansion reflects SpaceX’s broader push to grow its artificial intelligence capabilities and generate additional value from its computing infrastructure. Beyond supporting its own operations, the company has been seeking partnerships with major AI firms to commercialize its data center capacity.
In recent months, SpaceX signed AI computing agreements with Anthropic in May and Google in June, expanding its role in the rapidly growing AI infrastructure market.
The Texas expansion would position SpaceX among a growing group of technology companies investing in large-scale computing facilities as competition intensifies for the resources needed to power next-generation artificial intelligence applications.