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Elon Musk to build world’s largest building in Texas

Tuesday, August 11, 2026Niall Patrick WalshView original

SpaceX and Tesla have announced plans to build Terafab, a semiconductor manufacturing complex spanning more than 100 million square feet, in Grimes County, Texas. If completed, the scheme would become the world’s largest building.

The facility is planned to combine the manufacturing, packaging, and testing of advanced logic and memory devices. The chips will support applications including Tesla’s Optimus robots and autonomous vehicles, as well as SpaceX’s proposed space-based data centers.

The initial phase of the project is expected to cost approximately $16.8 billion. “Terafab will be epic in both its mission and in its sheer size, designed to build new compute at an unprecedented scale and speed,” SpaceX said.

Both companies are led by Elon Musk, who previously built an EV-charging drive-in restaurant in Los Angeles. Last year, a group of senators voiced concerns over efforts by DOGE, at the time led by Musk, to downsize the U.S. Department of Housing and Urban Development.

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