SpaceX invests in a 10-gigawatt solar power plant, expanding a double-layer production line in Bastrop, Texas, for AI space power generation

SpaceX Approved to Build 10 GW Solar Manufacturing Plant in Bastrop, Texas, with Two Production Lines Each Producing 5 GW of Solar Cells, as a Key Step in Musk's Space AI Data Center Project.
Tesla Simultaneously Building Solar Factory Near Houston, Both Companies Aiming for 100 GW Annual Capacity Each Within Three Years.
(Background Recap: Musk Warns of Power Shortage in the US Next Year: The Biggest Challenge for AI Development Is Not Computing Power, but These 3 Major Challenges)
(Additional Background: "Moving the Three Gorges Dam to Space" — China Plans to Build Solar Space Power Stations, Human Energy Freedom on the Horizon?)

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• Current State of the U.S. Solar Industry and Trade War Background
• Tesla's Simultaneous Entry into Solar Manufacturing
• Ecosystem of Bastrop Space City

SpaceX is extending the energy of the space race into the terrestrial solar industry. According to permit files obtained by Bloomberg, SpaceX plans to build a 10 GW solar manufacturing plant near Bastrop, Texas, with two production lines each producing 5 GW of solar cells.

This over one million square foot facility is part of SpaceX’s plan to double its existing Bastrop operations this year, which will also produce next-generation Starlink products in addition to solar cells. The company's IPO prospectus on Wednesday also detailed this expansion plan.
Energy Layout for Space AI Data Center

Elon Musk stated at the World Economic Forum in January that solar energy is the key solution to the energy bottleneck for artificial intelligence infrastructure. He announced an ambitious goal: Tesla and SpaceX each aim to establish 100 GW of annual solar manufacturing capacity in the U.S. within the next three years, a figure far exceeding current domestic output. Musk previously warned that the U.S. might face a power shortage next year, believing that the biggest concern for AI development is not computing power but energy supply.

The establishment of SpaceX’s solar factories is precisely to provide energy for its space AI data center project. Musk pointed out in Bloomberg’s space data center feature that moving AI computation to space orbit requires massive renewable energy support.

Current State of the U.S. Solar Industry and Trade War Background

Currently, the largest solar manufacturer in the U.S. is First Solar, with an annual capacity of about 14 GW using thin-film technology. According to a report released Thursday by the U.S. Clean Energy Association, the U.S. currently has over 60 GW of annual solar cell manufacturing capacity, but most are assembled overseas from silicon-based cells, with only three domestic silicon cell factories in operation.

The U.S. has imposed high tariffs on imports of solar products from China and Southeast Asian countries due to complaints from domestic manufacturers about unfair trade practices. This also explains why SpaceX and Tesla are choosing to establish solar cell manufacturing lines within the U.S.

Tesla's Simultaneous Entry into Solar Manufacturing

Tesla is also laying out its solar manufacturing strategy in Texas. According to Electrek’s report on May 19, Tesla posted multiple job openings related to solar manufacturing at its facility in Brookshire near Houston, which also plans to build Megapack batteries.

Tesla CFO Vaibhav Taneja revealed during a April investor call that the company has already started placing orders for solar manufacturing equipment. However, Chinese government intervention has led to the suspension of exports of advanced solar manufacturing equipment from Suzhou Maxwell Technologies to Tesla. Musk hopes that recent visits to China by the Trump administration can ease these issues, but the results remain uncertain.

Ecosystem of Bastrop Space City

The Bastrop area where SpaceX’s solar plant is located is gradually becoming Musk’s empire’s hub in Texas. This month, SpaceX also applied for enterprise zone certification for the Bastrop facility, which, if approved, will enjoy certain tax incentives. The area is already home to Musk’s Boring Company tunnel projects, xAI facilities, and provides amenities such as employee supermarkets, schools, and company-owned housing.

SpaceX Solar Production Director Noah Cowles stated on LinkedIn that the company is building “one of the most advanced solar cell factories in the world,” and is recruiting engineers for the plant.