SpaceX's Terafab chip plant in Texas has announced its plans to be powered by natural gas plants and large battery arrays, a decision that has raised eyebrows given Tesla's involvement in the project. The plant, which is expected to produce over a terawatt of compute per year for SpaceX and xAI data centers, will not utilize Tesla solar power, instead relying on fossil fuels to meet its energy needs.
Key Insights
The Terafab chip plant will be powered by natural gas plants and large battery arrays, with Tesla solar power not being used despite the company's partnership on the project. This decision highlights the complexity of balancing energy needs with environmental considerations, even for companies like Tesla that are at the forefront of the renewable energy revolution.










