Toyota Plans $2B San Antonio Expansion

Toyota has filed an application at the Texas Comptroller’s office to expand its San Antonio manufacturing plant with a $2 billion development dubbed Project Orca, as first reported by Bloomberg.

If approved, the construction process could begin this year, with estimated completion set in 2029 and commercial operations beginning in 2030.

The manufacturer’s filings come less than a year after the company had pledged to invest $10 billion across the nation by 2030, bringing its total commitment to almost $60 billion since it began its U.S. operations nearly 70 years ago.

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Toyota’s planned investment consists of $1.1 billion in building expenditures and $950 million in machinery costs. The company applied for several tax incentives, including the Texas Jobs, Energy, Technology and Innovation Act, and Chapter 312 abatements from the City of San Antonio and the County of Bexar. These benefits could run for a 10-year period. Additionally, Project Orca is within a Qualified Opportunity Zone.

Toyota’s San Antonio base of operations includes a 2.2 million-square-foot plant sitting on 2,000 acres. Unrelated to Project Orca, the firm is on schedule to deliver a $531 million, 500,000-square-foot, rear-axle facility at the site this year. Dubbed Project Iceberg, it broke ground in 2024.

Located at 1 Lone Star Pass, Toyota’s manufacturing site is within San Antonio’s South submarket, about 14 miles from the central business district and 6 miles from Connally Loop.

San Antonio’s southern submarket leads industrial activity

San Antonio’s industrial pipeline encompassed more than 2.7 million square feet of product underway as of March, according to a Cushman & Wakefield report. Industrial deliveries clocked in at just under 500,000 square feet during the first quarter, marking an 81.6 percent year-over-year decline.

Most of the deliveries were across the South submarket, which also led in terms of quarterly net absorption during the first three months of 2026. Likewise, heightened demand resulted in the area’s industrial vacancy falling to 9.5 percent in March, 180 basis points under the San Antonio average.

Another major development within the South submarket includes JCB’s $500 million project. The construction equipment manufacturer broke ground on the 720,000-square-foot plant in 2024. Completion is set for this fall.