# Elon Musk to Build the World's Largest Building Terafab will be a massive chip manufacturing facility for Tesla and SpaceX. - **Source:** [Architecture news and projects | Dezeen](https://brifing.si/source/50c21201-9cc6-48e0-8a7c-6ea605af10c3) - **Published:** 2026-08-10 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/8fa170da-cc12-4d4b-83a5-7149b35b9c84 ## A Massive Project Elon Musk’s SpaceX and Tesla are collaborating to build Terafab in Texas, which will become the world’s largest building. The facility, spanning over 100 million square feet, will surpass Russia’s AvtoVAZ main assembly building. Terafab will produce chips for Tesla’s Optimus robots and autonomous Cybercabs, as well as SpaceX’s space-based data centers. ## Rising Chip Demand SpaceX stated that its chip demand, along with Tesla’s, exceeds the current global supply. Terafab aims to bridge this gap. While the company supports existing suppliers in increasing production, it emphasized the necessity of building their own facility. ## Cost and Employment The first phase of Terafab will cost $16.8 billion. The facility will use water from the Gibbons Creek Reservoir for its industrial operations. Upon completion, it is expected to provide 3,000 jobs, primarily sourced from the local area. ## Technology and Leadership SpaceX highlighted that leadership in space, AI, and advanced manufacturing depends on the ability to produce critical technologies domestically. Terafab will pave the way for humans to build massive facilities in the solar system and eventually the galaxy. ## Design and Features Terafab’s design includes two symmetrical wings and a curved roof. A long road runs through the center of the facility. This massive structure will encompass manufacturing, packaging, and testing processes. ## Environmental Impact The construction of Terafab will impact the region’s water resources. Water drawn from the Gibbons Creek Reservoir will be used for industrial operations, necessitating careful consideration of environmental balances. ## Vision for the Future Elon Musk stated that Terafab is just the beginning. He envisions humans building even larger facilities in the solar system and galaxy in the future. This project is seen as the first step toward that vision. ## Economic and Technological Impact The completion of Terafab will have a significant impact on both the local economy and the global technology sector. It will not only meet Tesla and SpaceX’s chip needs but also create new job opportunities and drive technological advancements. ## Sources covering this story - https://www.dezeen.com/2026/08/10/terafab-elon-musk-spacex-tesla-largest-building/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._