SpaceX Tax Break: Two Commissioners Are Employees

SpaceX is pursuing a substantial property tax break for a proposed $24 billion data center and power plant project in Starbase, Texas. The plan involves constructing and operating a large-scale "gas-fired power plant and super-compute facility." This development is poised for consideration by the City Commission, which presents a unique situation: two of its three members are employed by SpaceX.

Mayor Robert "Bobby" Peden, also Vice President of Texas Test and Launch at SpaceX, and Commissioner Jordan Buss, Senior Director of Environmental, Health, and Safety for the company, sit on the commission. This raises questions regarding the impartiality of the review process for the tax abatement request. The third commissioner, Lois Wallace, does not have ties to SpaceX.

The proposed project is situated on approximately 444 acres within Starbase's city limits and is eligible for tax abatement under Texas law. The specific value and duration of the tax break are not detailed in the public notice. A public hearing is scheduled for December 9 in Starbase to discuss the proposed agreements.

This request follows a previous tax abatement agreement from 2014 between Cameron County and SpaceX. By 2024, SpaceX had reportedly invested over $3 billion in Starbase infrastructure and employed or contracted more than 3,400 people in the area.