Grimes County is where Elon Musk's proposed Terafab chipmaking site may be located on Wednesday, June 3, 2026.Elizabeth Conley/Houston Chronicle
Posted on 07/15/2026 3:55:52 PM PDT by SunkenCiv
Two rural school districts have advanced plans for $1.66 billion in tax breaks for SpaceX's proposed chipmaking facility outside of College Station.
Anderson-Shiro CISD and Iola ISD approved the SpaceX incentives during their separate meetings Tuesday night. The school boards will vote again after the agreements are finalized and approved by SpaceX and the state. Last month, Grimes County also agreed to waive its portion of the company's property taxes.
The chipmaking facility, dubbed Terafab, is expected to employ more than 3,000 people. It would build chips for broadband internet satellites and the data centers that SpaceX founder Elon Musk wants to launch into space, according to SpaceX employees who've spoken during the Iola ISD and Grimes County public meetings.
The initial buildout of the facility could cost $55 billion, growing to $119 billion if all four phases are built...
The value of the tax breaks would be adjusted if the scale of the project changes or if the school districts change their tax rates.
The agreements do not waive all of the company's school district taxes.
SpaceX would continue to pay 50% of the districts' taxes for day-to-day operations and 100% of the taxes for bond debt used to support new buildings, buses and other big expenses. The districts aren't losing money -- or leaving any on the table locally, due to how public schools are funded -- by approving the incentives, district officials said.
(Excerpt) Read more at houstonchronicle.com ...
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Grimes County is where Elon Musk's proposed Terafab chipmaking site may be located on Wednesday, June 3, 2026.Elizabeth Conley/Houston Chronicle
Andrea Leinfelder is the space reporter for the Houston Chronicle... Originally from Florida, Andrea graduated from the University of Florida in 2012 and has worked for the Houston Chronicle since 2014. She previously wrote for The News-Press in Fort Myers, Fla. She enjoys traveling, eating her way across Texas and chasing her two kids.
Consider the property tax they are gathering form barren Texas land right now. This is opportunity cost.
Now think of the sales tax and other fees that come in.
This is a no-brainer.
But, but, but,...data centers! Think of the water! Congestion. Crime. And don’t forget “Data centers”.
(yeah, they are only building chips that go into data centers...and they will be in space. But DATA CENTERS!)
“eating her way across Texas”
Bing didn’t highlight any articles about her culinary finds.
https://dallasdossier.org/best-indian-restaurants-in-dallas-tx
They have links for reviews for various suburbs.
Out of curiosity, have you read up on the new SoC (systems on a chip) tech that will reduce the AI data center footprint and energy load by 10X?
Amazing stuff from Nvidia.
Not only that- 99% Elon writes a big donation check for the two districts...
“The initial buildout of the facility could cost $55 billion”
My parents had the great advantage of having clear reasons to make investments in the stock market.
In the 1950s, my mother would read Barron’s and tend her children, pick some possibilities, talk them over with my father, and then they would lay out their money.
School districts in Texas have taxation rights?
“that will reduce the AI data center footprint and energy load by 10X”
Ah, we overpaid on massive investments by a factor of 10.
And the one of the lady C levels donated a bunch of stock to Trump account kids.
“School districts in Texas have taxation rights?”
In every part of all 50 states, plus DC, I believe.
Yup. The next-gen SoC tech is an extinction-level event for hyperscale data centers, as currently built. But, they can be converted to warehouses, or ICE facilities, LOL.
In the future, an AI data center, especially an inference layer one, can fit in a couple ISO containers. They could easily be located on customer prem.
“other big expenses”
Hopefully, the football stadiums.
Texas school districts know what matters.
“...space reporter...”
Put her on the first ship to Mars.
Yes.! Let’s go! Beat the Chicoms!
I agree with that
sounds like a win win!
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