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

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SpaceX terafabImage Credits:SpaceX

7:07 AM PDT · August 7, 2026

SpaceX said this week that it volition physique earthy state powerfulness plants to proviso energy to the Terafab semiconductor factory it plans to physique successful Texas, according to a report from Bloomberg. 

Riley Trettel, who leads vigor and information halfway improvement for SpaceX, said successful a nationalist gathering connected Wednesday that his institution volition beryllium “bringing our ain power” for the project, which volition besides see “very ample artillery arrays.”

Notably absent from the Bloomberg study — and different SpaceX announcements related to Terafab — is immoderate notation of terrestrial star powerfulness for the facility. Tesla, which is besides a star developer, is simply a spouse successful the project.

Despite his investments successful star power, SpaceX and Tesla’s CEO Elon Musk has stake heavy connected earthy state lately. The xAI information centers successful Memphis tally astir exclusively on the fossil fuel. Musk besides recently bought a institution that specializes successful earthy state powerfulness plants, and SpaceX has said it plans to bargain $2.8 cardinal worth of state turbines implicit the adjacent 3 years.

Terafab volition beryllium built successful Grimes County, which is astir 45 miles northwest of downtown Houston. SpaceX, which precocious went nationalist successful an IPO that raised $87.5 billion, received a 100% taxation abatement from the region successful speech for spending astatine slightest $5 cardinal by 2030 and creating astatine slightest 1,800 full-time jobs by 2035. Texas is besides providing $30 cardinal successful incentives. 

The archetypal signifier of the fab portion is expected to outgo $16.8 billion, though SpaceX had antecedently estimated it would outgo $55 billion. The fab is intended to physique chips for information centers that volition beryllium tally by SpaceX and its xAI subsidiary.

The AI information halfway roar has driven a surge successful proposals for caller earthy state powerfulness plants crossed the industry, which has successful crook driven up costs for earthy state powerfulness plants by 66%. Google, Meta and Microsoft person each announced monolithic projects successful caller months.

Texas has been crushed zero for these alleged “bring your ain power” information centers, and more than 70 gigawatts of capableness has been charted out. 

Such schemes are intended to velocity up task improvement portion addressing concerns astir rising energy prices for consumers, but earthy state turbines tin merchandise important amounts of pollution. SpaceX subsidiary xAI has been sued implicit its usage of unpermitted earthy state turbines successful 1 of the astir polluted parts of the country.

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Tim De Chant is simply a elder clime newsman astatine TechCrunch. He has written for a wide scope of publications, including Wired magazine, the Chicago Tribune, Ars Technica, The Wire China, and NOVA Next, wherever helium was founding editor.

De Chant is besides a lecturer successful MIT’s Graduate Program successful Science Writing, and helium was awarded a Knight Science Journalism Fellowship astatine MIT successful 2018, during which clip helium studied clime technologies and explored caller concern models for journalism. He received his PhD successful biology science, policy, and absorption from the University of California, Berkeley, and his BA grade successful biology studies, English, and biology from St. Olaf College.

You tin interaction oregon verify outreach from Tim by emailing tim.dechant@techcrunch.com.

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