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August 2026

Terafab to Rely on On-Site Natural Gas Power Plants Instead of Solar

Multiple reports confirm SpaceX and Tesla plan dedicated natural gas power plants to supply the massive Terafab facility in Grimes County, diverging from earlier solar-focused assumptions.

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"SpaceX's Terafab will rely on natural gas power plants, not Tesla solar panels"

— TechCrunch

Key Points

  • Initial phase cost cited as $16.8B with potential to reach $55-119B
  • Power infrastructure required due to enormous energy demands of 1TW compute target
  • Site selection in Grimes County tied to power availability

Coverage (18 sources)

📰 electrek.co Musk's Terafab chip plant will run on gas, not Tesla solar | Electrek Aug 10 📰 aol.com Elon Musk To Invest $2.8 Billion In What He Once Called “The Dumbest Experiment In History” - AOL Aug 22 𝕏 @JoeTegtmeyer (post) Aug 30 📰 datacenterknowledge.com SpaceX Plans to Power $16.8B Terafab Without the Grid Aug 12 📰 facilitiesdive.com Power ‘quality’ is why SpaceX’s Terafab is going with on-site gas, analysts say | Facilities Dive Aug 18 📰 livemint.com Elon Musk’s Tesla gives up on its Solar Roof tiles as EV maker 'leans into fossil fuels': Report | Company Business News Aug 22 📰 interestingengineering.com SpaceX to build on-site natural gas plant for $55b Texas semiconductor site Aug 7 𝕏 @cb_doge (post) Aug 30 📰 energiesmedia.com SpaceX announces plans to build natural gas power plants and battery storage for its $16.8 billion Texas chip factory Aug 19 📰 techtimes.com Terafab Confirmed: SpaceX Chooses Musk's Gas Firm Over Tesla's Solar Panels Aug 11 📰 mezha.net SpaceX Plans Gas Power Plants to Supply Its Terafab Chip Factory in Texas | Ukraine news - #Mezha Aug 7 📰 moorinsightsstrategy.com MI&S Weekly Analyst Insights — Week Ending August 21, 2026 Aug 24 📰 techcrunch.com SpaceX's Terafab will rely on natural gas power plants, not Tesla solar panels | TechCrunch Aug 7 𝕏 @elonmusk (post) Aug 30 𝕏 @JoeTegtmeyer (post) Aug 12 📰 startupfortune.com SpaceX Is Building a Turbine Blade Factory to Escape the AI Power Crunch - Startup Fortune Aug 30 📰 clubic.com SpaceX : la méga usine « Terafab » tournera au gaz naturel, exit le solaire de Tesla Aug 10 📰 datacenterdynamics.com SpaceX to power TeraFab chip factory in Texas via on-site generation and battery storage - DCD Aug 11