Elon Musk’s Tesla and SpaceX Plan Massive Texas Facility That Could Become World’s Largest Building

TEXAS, United States – Elon Musk’s Tesla and SpaceX are planning an enormous semiconductor manufacturing complex in Texas that, if completed as proposed, could become the largest building in the world.

The project, known as Terafab, is planned for Grimes County, near Houston. Tesla and SpaceX say the first phase will require an estimated $16.8 billion investment, while the entire project could eventually involve significantly more funding.

A Facility Designed on an Extraordinary Scale

The planned Terafab complex is expected to cover more than 100 million square feet.

For comparison, the New Century Global Center in Chengdu, China, currently holds the record for the world’s largest building by floor area at roughly 18.9 million square feet. The proposed Terafab would therefore be more than five times larger.

The facility would also be dramatically larger than well-known American structures such as the Pentagon and the Mall of America.

Musk has described the project as an ambitious “sci-fi city” concept, with the companies envisioning a highly integrated manufacturing operation under one roof.

What Will Be Produced There?

Terafab is intended to manufacture advanced semiconductor technology for Tesla and SpaceX.

According to the companies, the facility is expected to bring multiple stages of chip production together, including manufacturing, memory production, packaging and testing.

The chips are intended for technologies including Tesla’s autonomous vehicles and Optimus robots, as well as SpaceX’s expanding computing infrastructure.

Tesla and SpaceX say their combined future demand for computing power is expected to be enormous, creating a need for additional in-house chip production.

Thousands of Jobs Expected

The project is expected to create at least 3,000 jobs, with Tesla and SpaceX saying they intend to recruit workers from surrounding communities.

The companies have also said the project could expand substantially beyond its initial phase. If all proposed phases move forward, total investment could eventually reach approximately $119 billion.

Texas Project Draws Local Attention

The scale of the development has also generated concerns among some local residents.

Community members have questioned the project’s tax incentives and the transparency surrounding agreements connected to the development. Water use has also been an issue surrounding large industrial and technology projects in Texas.

SpaceX and Tesla have said the Terafab site will use water from Gibbons Creek Reservoir rather than relying on local groundwater supplies.

Texas officials have backed the development, including a reported $30 million Texas Enterprise Fund grant for SpaceX.

A Major Bet on Domestic Chip Production

Terafab represents a major expansion of Musk’s industrial ambitions beyond electric vehicles, rockets and artificial intelligence.

If construction proceeds according to the current plans, the project could become one of the largest industrial developments ever attempted and potentially set a new record for the world’s largest building.

However, the proposed scale means the project will still face significant construction, financing, infrastructure and regulatory challenges before it can reach its planned final size.

For now, Terafab remains a planned development rather than a completed structure, meaning its eventual size and status as the world’s largest building will depend on how much of the project is ultimately built.