Riley Trettel, who manages energy and data center development for SpaceX, stated at a public meeting that the company will bring its own power to the project, supplemented by large battery arrays. The decision marks a shift for Musk, who has recently pivoted toward natural gas to support his AI ambitions. This includes the xAI data center in Memphis, which relies heavily on gas, and a $2.8 billion procurement plan for gas turbines over the next three years.
SpaceX Opts for Natural Gas Over Solar for Texas Terafab Facility
SpaceX confirmed plans to power its upcoming Terafab semiconductor factory in Texas using dedicated natural gas plants rather than solar energy. Despite Elon Musk’s extensive investments in solar technology through Tesla, the company is prioritizing fossil fuel-based electricity to support the massive energy demands of its new chip manufacturing site.
Located in Grimes County, 45 miles northwest of Houston, the Terafab project secured a 100% tax abatement in exchange for a $5 billion investment and the creation of 1,800 jobs by 2035. While the initial phase carries a $16.8 billion price tag, the facility aims to produce chips specifically for SpaceX and xAI data centers. The move reflects a broader industry trend where major tech players like Google, Meta, and Microsoft are bypassing grid limitations by building private power solutions. However, the reliance on natural gas has drawn scrutiny, particularly as xAI faces legal challenges regarding the use of unpermitted turbines in heavily polluted regions.
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