SpaceX signs tax-abatement partnership with Grimes County to power TeraFab chip factory with on-site generation and battery storage

Type: Partnership · Technology: Gas, Storage · Country: United States · Announced: 2026-08-12

SpaceX entered into a tax-abatement partnership with Grimes County, Texas, to power its upcoming TeraFab chip factory using on-site generation and battery storage. The agreement calls for the construction of natural-gas-fired power plants and a battery storage facility, with a permanent 1.2 GW plant comprising 41 gas turbines slated for installation. The project will also include an onsite wastewater-treatment plant and water-reuse measures as part of its sustainability plan. The facility will avoid grid electricity, securing a reliable power supply for semiconductor manufacturing and AI workloads. The tax-abatement deal, fully executed as of the article’s publication, reflects SpaceX’s broader strategy to internalize energy generation for its data-center and manufacturing assets.

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