SpaceXAI seeks Arizona permit for 6GW data center

DatacenterDynamics reported that SpaceXAI has filed, through affiliate Tombstone Resources LLC, for a special development permit in Cochise County, Arizona. The company says the campus could require 6GW of power at full build-out across 747 acres near Willcox Playa. The land is currently owned by Arizona Electric Power Cooperative and Southline Transmission LLC.

The application describes up to nine data center buildings, each 493,000 sq ft. SpaceXAI wants to bring the site online in four 1.5GW stages, starting construction in March 2027 if zoning approval is granted. The company told DatacenterDynamics that compute timing depends on grid upgrades, which it would fund at about $3.6 billion, including $500 million for phase one. The site sits next to AEPCO's 626MW Apache Generating Station, and SpaceXAI plans a 24GWh battery storage system so the facility does not disturb Arizona's grid. Cochise County will decide the zoning request on December 9.

Newsweek reported Friday that Texas governor-elect Gina Hinojosa has promised an immediate moratorium on data centers until the Texas Legislature passes protections. She said data centers are "guzzling up all our water" and "guzzling up all our electricity." Her proposals would also require union labor, ban non-disclosure agreements, make data companies prove households will not pay more for electricity or water, remove subsidies and let communities help decide whether data centers come in.

Governor Greg Abbott had already told the Texas Commission on Environmental Quality in September to stop issuing new data center permits while ERCOT and TWDB audits were completed. Hinojosa's planned moratorium would go further, applying to any new permits until new laws pass.

Texas is a major data center market. Newsweek reported, citing Pew Research Center, that Texas has more operational data centers than any state except Virginia. CNN has said a quarter of America's planned AI infrastructure buildout is set for the state. A University of Texas/Texas Politics Project poll of 1,200 registered Texas voters in August found 41 percent would strongly oppose a data center in their community.

The Information reported, according to Newsweek, that SpaceXAI had investigated Texas sites by July that could match or surpass its Memphis-area campus, which has an estimated one gigawatt of combined compute capacity. DatacenterDynamics separately reported that Musk's hoped-for $20 billion TeraFab chip factory in Texas could face a more hostile environment after Hinojosa's victory in Tuesday's midterm elections. Hinojosa told CNN on Thursday: "We can have a strong working relationship with Elon Musk and his companies, but it has to be on our terms."