SpaceX plans to power its biggest Terafab chip factory in Texas with natural gas plants and large battery systems rather than Tesla’s solar technology.
The $16.8 billion semiconductor facility, being developed by SpaceX and Tesla in Grimes County, Texas, is likely to produce the cutting-edge chips for SpaceX, xAI and future Tesla products, including Optimus and Cybercab.
Gas power for massive energy demand
Terafab is being built on the site of a former coal-fired power plant. The Elon-Musk owned space enterprise plans to construct new natural gas power plants at the location and use large battery arrays to support the facility.
The decision is notable because Tesla already sells solar panels, Powerwall home batteries and Megapack systems are particularly designed for large-scale energy storage.
Notably, Musk’s other AI projects have heavily depended on natural gas. xAI’s data center near Memphis has used gas turbines to meet its growing electricity needs.
Also, Musk recently acquired gas turbine company APR Energy in a deal reportedly worth about $1 billion.
Tesla’s solar technology not included
Tesla has promoted solar power and battery storage as solutions for rapidly increasing electricity demand from data centers. The company has also supplied Megapack batteries to xAI.
Despite this, Tesla solar technology is not currently included in Terafab’s announced power plans.
The facility will need a bigger and reliable electricity supply to support chip manufacturing and computing operations. Gas plants can provide continuous power, while batteries can help manage demand and provide additional backup.
Terafab’s dependence on natural gas may also significantly impact the environment.
