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.
Key facts
- 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
SpaceX's Terafab will rely on natural gas power plants, not Tesla solar panels
How the story unfolded
- 3 sources
- interestingengineering.com SpaceX to build on-site natural gas plant for $55b Texas semiconductor site Driven by Musk’s vision of a ... AI data centers, the Terafab project aims to fill a massive computing shortfall that current global chip production cannot support. It will mass-produce custom artificial intelligence chips engineered to power ...
- mezha.net SpaceX Plans Gas Power Plants to Supply Its Terafab Chip Factory in Texas | Ukraine news - #Mezha ... SpaceX proposes Terafab, a $55–119 billion vertically integrated semiconductor plant in Grimes County, Texas, to supply chips for xAI, Tesla, satellites and a planned space data center.
- techcrunch.com SpaceX's Terafab will rely on natural gas power plants, not Tesla solar panels | TechCrunch The initial phase of the fab unit is expected to cost $16.8 billion, though SpaceX had previously estimated it would cost $55 billion. The fab is intended to build chips for data centers that will be run by SpaceX and its xAI subsidiary.
- 2 sources
- electrek.co Musk's Terafab chip plant will run on gas, not Tesla solar | Electrek SpaceX confirmed it will power Terafab, its $16.8 billion chip megafactory in Texas, with its own natural gas power plants and “very large battery arrays.” Tesla solar isn’t in the plan.
- clubic.com SpaceX : la méga usine « Terafab » tournera au gaz naturel, exit le solaire de Tesla Le gaz naturel n’a pourtant rien d’anodin. À Memphis, les turbines de xAI ont fonctionné pendant des mois sans les permis nécessaires, avant de faire l’objet d’une plainte pour violation du Clean Air Act, la loi fédérale sur la qualité de l’air.
- 2 sources
- techtimes.com Terafab Confirmed: SpaceX Chooses Musk's Gas Firm Over Tesla's Solar Panels The other will produce the D3 chip, a radiation-hardened design for SpaceX's satellite constellations and orbital data centers. Terafab's planned chip architectures organize production around one chip per fab — a design that minimizes scheduling ...
- datacenterdynamics.com SpaceX to power TeraFab chip factory in Texas via on-site generation and battery storage - DCD SpaceX looks set to power its TeraFab semiconductor campus in Texas via on-site generation and battery storage, rather than seek a connection to the grid.
- 2 sources
- datacenterknowledge.com SpaceX Plans to Power $16.8B Terafab Without the Grid SpaceX plans to power its massive Terafab semiconductor and advanced-computing campus in Grimes County, Texas, with onsite generation and battery storage rather than electricity from the grid, according to a fully executed tax-abatement agreement ...
- @JoeTegtmeyer Post
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- aol.com Elon Musk To Invest $2.8 Billion In What He Once Called “The Dumbest Experiment In History” - AOL Operators are turning to on-site natural gas, sometimes called "behind-the-meter" or "dark energy" power. Electrek reported on August 10, 2026 that Musk's Terafab chip plant will run on gas rather than Tesla solar. xAI has operated dozens of turbines near Memphis.
- livemint.com Elon Musk’s Tesla gives up on its Solar Roof tiles as EV maker 'leans into fossil fuels': Report | Company Business News “We’re bringing our own power,” said Riley Trettel, a company lead for the development of Terafab, at the Grimes County Commissioners Court last week. “We are going to be building very large battery arrays in order to store energy.” · Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint.
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- 4 sources
- @JoeTegtmeyer Post
- @cb_doge Post
- @elonmusk Post
- startupfortune.com SpaceX Is Building a Turbine Blade Factory to Escape the AI Power Crunch - Startup Fortune Texas adds another piece. Electrek reported this month that Tesla and SpaceX's Terafab chip project in Grimes County, Texas, is planned around newly built natural gas plants and large battery arrays rather than Tesla solar. The first phase was put at about $16.8 billion, with the companies saying the site is meant to produce more than a terawatt of compute per year.