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Leaving California Is Just the First Step: SpaceX Initiates Plans to Create an Independent City in Texas

  • The city of Starbase will serve as SpaceX’s official headquarters. It’ll be established as a municipality with several facilities.

  • With the creation of its own city, SpaceX is following in the footsteps of companies like Toyota in Japan and Huawei in China.

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SpaceX wants to colonize Mars but needs its own city to achieve this goal. The company has communicated its plans to move its headquarters to Southeast Texas to local authorities. In fact, it’s already received the approval of Texas Governor Greg Abbott.

Context. In July, SpaceX CEO Elon Musk announced that SpaceX headquarters would be relocating from California to Texas. This decision was prompted by a series of California laws. However, the final straw was a particular law that prevents school districts from requiring parental notification regarding changes in students’ sexual orientation and gender identity.

Musk had previously moved the headquarters of Tesla, as well as his own residence, from California to Texas, which doesn’t have a state personal income tax. Moreover, Musk’s companies benefit from incentives and strong government support, particularly from Abbott.

Welcome to Starbase. SpaceX’s headquarters won’t be located in Austin, where Tesla is based. Instead, they’ll be located in Starbase, a newly established city created by the company around the Starship factory. For years, SpaceX has been expanding its presence in the small village of Boca Chica, near the mouth of the Rio Grande.

This is where the company is developing its new Starship rocket, a project that has revitalized the economy of Cameron County and the nearby city of Brownsville. SpaceX has initiated proceedings to incorporate Starbase as an official municipality, complete with its own zip code and city council.

Why does SpaceX need its own city? In a recent letter to County Judge Eddie Treviño, Kathryn Lueders, former director of NASA’s human spaceflight program and current Starbase general manager at SpaceX, explained that the main reason is to reduce bureaucratic obstacles in transforming the site and to attract talent to the area.

“Incorporating Starbase will streamline the processes required to build the amenities necessary to make the area a world class place to live–for the hundreds already calling it home, as well as for prospective workers eager to help build humanity’s future in space,” she said in the letter.

City management. Although Starbase isn’t officially designated as a municipality yet, SpaceX has been dealing with certain responsibilities, including road management, which is often disrupted by Starship testing.

Additionally, SpaceX provides some public services, such as education and healthcare, for families employed directly or indirectly by the company. Establishing Starbase as an official city would transfer these management responsibilities to a new public entity. However, the local economy would remain closely tied to SpaceX. Currently, the space company is facing significant federal scrutiny regarding the potential environmental effects of Starship testing.

Musk is confident. On Dec. 13, the SpaceX CEO announced that the company’s headquarters would officially be located in Starbase. Abbott said in response, “This is excellent. Starbase, Texas. The official HQ for SpaceX. Proud to have you in Texas!”

Interestingly, SpaceX isn’t the first company to pursue this model. For instance, Japan’s Aichi Prefecture is home to the city of Toyota, which hosts factories and research and development centers for the automaker. In China, Huawei has developed a large campus with facilities intended to accommodate 30,000 people. Similarly, Google collaborated on the construction of a neighborhood called Sidewalk Toronto in the Canadian city, although the project was finally canceled in 2020.

Image | Kelly Michals

Related | What Used to Cost $1.5 Billion Now Costs SpaceX Only $15 Million: This Is How It’s Dominating the Space Launch Industry

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