{"id":1004797831,"date":"2026-05-07T02:42:26","date_gmt":"2026-05-07T10:42:26","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004797831"},"modified":"2026-05-11T07:07:21","modified_gmt":"2026-05-11T15:07:21","slug":"spacex-eyes-new-texas-site-for-55b-manufacturing-project","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/spacex-eyes-new-texas-site-for-55b-manufacturing-project\/","title":{"rendered":"SpaceX JV Eyes New Texas Site for $55B Manufacturing Project"},"content":{"rendered":"\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure data-wp-context=\"{&quot;imageId&quot;:&quot;6a397f2a52a63&quot;}\" data-wp-interactive=\"core\/image\" class=\"alignright size-full is-resized wp-lightbox-container\"><img loading=\"lazy\" decoding=\"async\" width=\"800\" height=\"600\" data-attachment-id=\"1004797833\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/spacex-eyes-new-texas-site-for-55b-manufacturing-project\/5_gigafactorytexas_01_featured\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/05\/5_GigafactoryTexas_01_Featured.jpg\" data-orig-size=\"800,600\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"5_GigafactoryTexas_01_Featured\" data-image-description=\"&lt;p&gt;Image obtained from Tesla&#8217;s media kit here: https:\/\/www.tesla.com\/tesla-gallery&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;Tesla\u2019s existing Gigafactory in Austin may include a research &#038; development facility, while Terrafab\u2019s manufacturing will take place elsewhere. Image courtesy of Tesla&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/05\/5_GigafactoryTexas_01_Featured.jpg?w=800\" data-wp-class--hide=\"state.isContentHidden\" data-wp-class--show=\"state.isContentVisible\" data-wp-init=\"callbacks.setButtonStyles\" data-wp-on-async--click=\"actions.showLightbox\" data-wp-on-async--load=\"callbacks.setButtonStyles\" data-wp-on-async-window--resize=\"callbacks.setButtonStyles\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/05\/5_GigafactoryTexas_01_Featured.jpg\" alt=\"Drone shot depicting Tesla's Gigafactory in Austin, Texas.\" class=\"wp-image-1004797833\" style=\"width:400px\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/05\/5_GigafactoryTexas_01_Featured.jpg 800w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/05\/5_GigafactoryTexas_01_Featured.jpg?resize=300,225 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/05\/5_GigafactoryTexas_01_Featured.jpg?resize=768,576 768w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><button\n\t\t\tclass=\"lightbox-trigger\"\n\t\t\ttype=\"button\"\n\t\t\taria-haspopup=\"dialog\"\n\t\t\taria-label=\"Enlarge\"\n\t\t\tdata-wp-init=\"callbacks.initTriggerButton\"\n\t\t\tdata-wp-on-async--click=\"actions.showLightbox\"\n\t\t\tdata-wp-style--right=\"state.imageButtonRight\"\n\t\t\tdata-wp-style--top=\"state.imageButtonTop\"\n\t\t>\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"12\" height=\"12\" fill=\"none\" viewBox=\"0 0 12 12\">\n\t\t\t\t<path fill=\"#fff\" d=\"M2 0a2 2 0 0 0-2 2v2h1.5V2a.5.5 0 0 1 .5-.5h2V0H2Zm2 10.5H2a.5.5 0 0 1-.5-.5V8H0v2a2 2 0 0 0 2 2h2v-1.5ZM8 12v-1.5h2a.5.5 0 0 0 .5-.5V8H12v2a2 2 0 0 1-2 2H8Zm2-12a2 2 0 0 1 2 2v2h-1.5V2a.5.5 0 0 0-.5-.5H8V0h2Z\" \/>\n\t\t\t<\/svg>\n\t\t<\/button><figcaption class=\"wp-element-caption\">Tesla\u2019s existing Gigafactory in Austin may include a research &amp; development facility for Terafab. <em>Image courtesy of Tesla<\/em><\/figcaption><\/figure><\/div>\n\n\n<p>The joint venture of SpaceX, Tesla and xAI has proposed a location for its massive, $55 billion chip manufacturing campus dubbed Terafab. Total costs may amount to $119 billion if the facility is expanded. Production is expected to begin in 2027.<\/p>\n\n\n\n<p>The project could take shape near College Station, Texas, with officials set to hold a meeting in June to consider a tax abatement, as <a href=\"https:\/\/www.houstonchronicle.com\/news\/houston-texas\/space\/article\/elon-musk-terafab-grimes-county-texas-22243545.php\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">reported by the <em>Houston Chronicle<\/em><\/a>. The site is in Grimes County\u2019s Gibbons Creek Reservoir, about 84 miles northwest of downtown Houston and 125 miles east of downtown Austin, Texas.<\/p>\n\n\n\n<p>Elon Musk announced plans for Terafab in March. The need for this project rose as Musk estimated the chip demand for his companies may not be met by existing suppliers, although <a href=\"https:\/\/www.commercialsearch.com\/news\/is-industrial-cre-benefiting-from-tariffs-and-reshoring\/\">reshoring manufacturing<\/a> also played a role. Terafab could produce enough chips for 1 terawatt of computing power each year. By comparison, the U.S. annual consumption is half that.<\/p>\n\n\n\n<div class=\"wp-block-group cmw-cpe-newsletter\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group cmw-cpe-newsletter-content\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group cmw-cpe-newsletter-content-img\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"1200\" data-attachment-id=\"1004794779\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/cpe-sneak-peek-square\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/CPE-Sneak-Peek-square.jpg\" data-orig-size=\"1200,1200\" data-comments-opened=\"0\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"CPE Sneak Peek square\" data-image-description=\"&lt;p&gt;CPE Sneak Peek Newsletter Preview&lt;\/p&gt;\n\" data-image-caption=\"&lt;p&gt;CPE Sneak Peek Newsletter Preview&lt;\/p&gt;\n\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/CPE-Sneak-Peek-square.jpg?w=1024\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/CPE-Sneak-Peek-square.jpg\" alt=\"CPE Sneak Peek Newsletter Preview\" class=\"wp-image-1004794779\" style=\"width:88px;height:auto\" srcset=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/CPE-Sneak-Peek-square.jpg 1200w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/CPE-Sneak-Peek-square.jpg?resize=150,150 150w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/CPE-Sneak-Peek-square.jpg?resize=300,300 300w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/CPE-Sneak-Peek-square.jpg?resize=768,768 768w, https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/04\/CPE-Sneak-Peek-square.jpg?resize=1024,1024 1024w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-group cmw-cpe-newsletter-content-text\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading\" id=\"h-cpe-sneak-peek-newsletter\">CPE Sneak Peek Newsletter<\/h2>\n\n\n\n<p>Be the first to receive exclusive insights, data-backed analysis and expert commentary. Early access, every week.<\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<form class=\"cmw-inline-newsletter\" action=\"https:\/\/whatcounts.com\/bin\/listctrl\" method=\"POST\">\n  <input type=\"hidden\" name=\"slid\" value=\"5C84B893BD6D939E33A6A73C89655EA8\" \/>\n  <input type=\"hidden\" name=\"cmd\" value=\"subscribe\" \/>\n  <input type=\"hidden\" name=\"wxuiversionfirst\" value=\"\" \/>\n \n  <input type=\"hidden\" name=\"errors_to\" value=\"\" \/>\n\n  <label class=\"sr-only\" for=\"email\">Email<\/label>\n  <input type=\"email\" id=\"email\" name=\"email\" required maxlength=\"65\"\n         placeholder=\"Your email address\"\n         oninvalid=\"this.setCustomValidity('Please enter a valid email address')\"\n         oninput=\"this.setCustomValidity('')\"\/>\n\n  <button type=\"submit\">Sign up now<\/button>\n<\/form>\n<\/div><\/div>\n\n\n\n<p><\/p>\n\n\n\n<p>To aid this endeavor, Tesla filed plans for a 2 million-square-foot R&amp;D facility next to its existing Gigafactory in Austin. This property may support research for Terafab, while the manufacturing itself would take place elsewhere on account of land constraints.<\/p>\n\n\n\n<p>That\u2019s where the large site in Grimes County comes into play, as it may include two separate plants, each creating chips with different use-case scenarios, including space-based data centers. Intel will also be part of the fabrication process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-need-for-chips-and-tesla-s-other-deals\">The need for chips and Tesla&#8217;s other deals<\/h2>\n\n\n\n<p>Tesla also has ongoing deals with Samsung. Last year, the duo inked a $16.5 billion deal to produce AI5 and AI6 chips, bumping Samsung\u2019s project in Taylor, Texas. This agreement expedited Samsung\u2019s development process, as it had faced several delays up to that point due to difficulties attracting clients.<\/p>\n\n\n\n<p>In fact, the plant is set to begin operations in 2026, after approximately two years of delays. Samsung first chose the Taylor site in 2021, then broke ground one year later. Notably, this marked the largest economic development in Texas at the time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The facility aims to produce chips for 1 terawatt of computing power annually. <\/p>\n","protected":false},"author":3471,"featured_media":1004797833,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1578,21782,1589,21748,21783,21742,51973],"tags":[52234,51936],"class_list":["post-1004797831","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-austin","category-development","category-houston","category-industrial","category-investment","category-latest","category-southwest","tag-intel","tag-tesla"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SpaceX JV Eyes New Texas Site for $55B Manufacturing Project - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Elon Musk&#039;s SpaceX may develop the $55 billion first phase of Terafab, a chip manufacturing plant, in College Station, Texas.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/spacex-eyes-new-texas-site-for-55b-manufacturing-project\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SpaceX JV Eyes New Texas Site for $55B Manufacturing Project\" \/>\n<meta property=\"og:description\" content=\"Elon Musk&#039;s SpaceX may develop the $55 billion first phase of Terafab, a chip manufacturing plant, in College Station, Texas.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/spacex-eyes-new-texas-site-for-55b-manufacturing-project\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2026-05-07T10:42:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-05-11T15:07:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2026\/05\/5_GigafactoryTexas_01_Featured.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Claudiu Tiganescu\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/spacex-eyes-new-texas-site-for-55b-manufacturing-project\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/spacex-eyes-new-texas-site-for-55b-manufacturing-project\/\",\"name\":\"SpaceX JV Eyes New Texas Site for $55B Manufacturing Project - 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