SpaceX is preparing a new energy model for its planned Terafab semiconductor facility in Texas. According to company remarks, the project will be powered by natural gas plants supported by large battery arrays, with no mention of on-site solar generation.
Riley Trettel, who oversees energy and data center development at SpaceX, said the company intends to "bring our own power" to the site. The approach is designed to give the factory a dedicated electricity supply as construction moves forward in Grimes County, northwest of Houston.
The facility is expected to produce chips for SpaceX and its xAI data centers, reflecting the growing link between advanced manufacturing and AI infrastructure. The first phase of the project is estimated at $16.8 billion, while earlier projections placed the total much higher.
Local agreements include a full tax abatement tied to investment and job creation targets, alongside support from Texas incentives. SpaceX says the project could bring at least 1,800 full-time jobs by 2035, while also strengthening the region's industrial base.
Across the tech sector, more companies are turning to self-built power systems to accelerate data center and manufacturing plans. As AI demand rises, natural gas generation and battery storage are becoming central tools in the race to build faster, larger, and more resilient digital infrastructure. This shift could help shape the next generation of industrial energy strategy.
