SpaceX to Build Natural Gas Power Plants for Texas Chip Factory

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessSpaceX to Build Natural Gas Power Plants for Texas Chip FactorySpaceX plans to build its own power plants to support the massive semiconductor manufacturing facility it’s developing in Texas with Tesla Inc.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — SpaceX plans to build its own power plants to support the massive semiconductor manufacturing facility it’s developing in Texas with Tesla Inc.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an Account“We’re bringing our own power,” Riley Trettel, who oversees energy and data center development for SpaceX, said Wednesday during a public meeting in Grimes County, Texas. “We’re going to be building natural gas fired power plants, and we’re going to be building very large battery arrays in order to store energy.”The comments offer fresh insight into the plans by Elon Musk’s two biggest companies for the new plant, known as Terafab. SpaceX and Tesla on Thursday confirmed that the chip facory will be built in Grimes County, with an initial phase expected to cost $16.8 billion.The project, which is expected to create 3,000 new jobs, will receive a Texas Enterprise Fund grant of $30 million. The 100 million-square-foot facility will be constructed in phases on a footprint of roughly 3,000 acres, but SpaceX has over 13,000 acres currently under its control.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againMusk, the chief executive officer of both SpaceX and Tesla, has said the semiconductor industry is moving too slowly to keep up with the amount of chips needed for his initiatives and that of the broader tech industry, and he has warned of geopolitical risks. Intel Corp. joined the project in April and is expected to lend its expertise in designing, fabricating and packaging. Musk expects the facility to make two kinds of chips: one for use in Tesla’s Optimus humanoid robots and electric cars, and another designed for use in space. Surging power demand from data centers and new factories has driven demand for new gas plants, and Musk has long been a fan of vertical integration. Musk and his companies are not strangers to the Texas energy market. Tesla makes utility-scale battery energy storage devices known as Megapacks, and has a Megapack factory west of Houston.“We are going to be moving nearly immediately to get going on the project,” Trettel said. “We need to get our civil work started. We need to start to get foundations in place, and we’re going to get cracking.”This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.