SpaceX intends to use on-site power generation and battery storage for its Terafab semiconductor and advanced-computing center in Grimes County, Texas, rather than electricity from the grid. This is confirmed in a tax-abatement agreement that has been finalised with the county. The agreement specifies that once operational, the facilities will be powered by electricity generated from on-site power plants and will not rely on electricity from the grid.
SpaceX and Tesla declared a preliminary investment of $16.8 billion in Terafab on August 6th. The firms revealed their intentions to build a 100 million square foot campus in Grimes County. The project in Texas, outlined in the incentive filings, consists of four stages and could involve an investment of approximately $119 billion.
On June 3, the county issued an order that designated the site as a reinvestment zone, outlining plans for the development which consist of a semiconductor manufacturing plant, an artificial intelligence facility, and a power plant. This is related to the recent SpaceX IPO filing that portrays the company as a major player in AI infrastructure.
The county agreement mentions “the battery storage project,” indicating that onsite power generation and storage are components of the proposed infrastructure. SpaceX would be responsible for the infrastructure generally supplied by the electric grid, such as generation, reserves, voltage and frequency regulation, storage, and recovery.
Power is an integral aspect of their plan. The tax-abatement agreement outlines the operations of the facilities as expected by SpaceX: onsite power plants will provide electricity, and the facilities should not rely on grid electricity. This does not imply that Terafab will be completely disconnected from the grid.
Neil Osnato, founder of Persistence Analytics Group, emphasizes the importance of this distinction, as a facility can maintain a physical connection to the grid while relying on onsite generation under regular circumstances. Osnato informed Data Center Knowledge that it is common for industrial facilities to use onsite generation, cogeneration, or dedicated power.
