SpaceX has announced plans to construct natural gas power plants to provide electricity for its Terafab semiconductor factory in Texas. The facility, which will also include "very large battery arrays," will be built in Grimes County, approximately 45 miles northwest of downtown Houston.
Riley Trettel, who leads energy and data centre development for SpaceX, stated on Wednesday that the company will be "bringing our own power" for the project. Notably, there has been no mention of terrestrial solar power for the facility, despite Tesla, a partner in the project, also being a solar developer.
The initial phase of the Terafab unit is projected to cost $16.8 billion. The factory is intended to produce chips for data centres run by SpaceX and its xAI subsidiary. SpaceX received a 100% tax abatement from Grimes County, contingent on spending at least $5 billion by 2030 and creating a minimum of 1,800 full-time jobs by 2035. Texas is also providing $30 million in incentives.
The AI data centre boom has led to a rise in proposals for new natural gas power plants across the industry, contributing to a 66% increase in their costs. Concerns have been raised regarding the pollution that natural gas turbines can release, with SpaceX subsidiary xAI facing a lawsuit over its use of unpermitted natural gas turbines in another location.