SpaceX and Tesla plan $16.8B investment in Terafab semiconductor and AI campus with onsite power generation and battery storage

Type: Investment · Technology: Industrial · Country: United States · Value: $16.8B · Announced: 2026-08-06

SpaceX and Tesla announced a $16.8 billion initial investment to develop Terafab, a 100-million-square-foot semiconductor and advanced-computing campus in Grimes County, Texas. The project includes a semiconductor manufacturing plant, an artificial intelligence facility, and a power plant, with a potential total investment of up to $119 billion across four phases. SpaceX plans to power the campus entirely with onsite generation and battery storage, including natural gas-fired power plants and large battery arrays, rather than relying on the electric grid. The tax-abatement agreement with Grimes County specifies that the facilities will not use grid electricity, marking a material departure from conventional industrial power supply models. The project aims to produce chips for Tesla vehicles, Optimus robots, and SpaceX computing systems, targeting 1 terawatt of annual computing capacity. The agreement also outlines plans for onsite water and wastewater infrastructure, including a wastewater treatment facility and efforts to minimize groundwater use.

Counterparties

Source article

📈 The Sherpa Signal — one notable infrastructure deal a day.