The Starbase city commission will take up the request, along with a related economic development agreement, at a hearing scheduled for Dec. 9. The three-member commission includes two members who are also SpaceX executives, a arrangement that has drawn scrutiny as the company seeks public subsidies from the municipality it largely built.

According to the notice, SpaceX intends to "construct, own, and operate a gas-fired power plant and super-compute facility." The project would pair on-site fossil fuel generation with the massive computing infrastructure needed to train and run artificial intelligence models.

Separately, SpaceX has applied to the Texas Commission on Environmental Quality for air permits covering 35 mobile gas-fired turbines in the same area. The application, filed in September and first reported by local journalist Joshua Moroles, states the turbines would generate roughly 750 megawatts of electricity.

The timing of the subsidy request is notable: it comes just weeks before Democratic Gov.-elect Gina Hinojosa, who has been critical of the state's rapid data center expansion, is set to take office in January. Hinojosa's incoming administration could shift the political landscape for large energy-intensive projects seeking state and local incentives.

The proposal also raises questions about local governance and environmental impact. Starbase, a company town in all but name, has a city government closely intertwined with SpaceX. The tax abatement would reduce property tax revenue that would otherwise flow to local services, while the gas-fired turbines would add significant emissions in a region already grappling with industrial development along the Gulf Coast.

SpaceX did not immediately respond to a request for comment on the specifics of the abatement or the environmental permitting. The Dec. 9 hearing will be open to the public, according to the notice.