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ToggleSpaceX is extending the energy of the space race to the ground-based solar industry. According to Barstow County permitting documents obtained by Bloomberg, SpaceX plans to build a 10-gigawatt solar manufacturing plant in Barstow, near Austin, Texas, with two production lines, each producing 5 gigawatts of solar cells.
This factory, spanning over one million square feet, is part of SpaceX's plan to double its existing Barstow facility this year. In addition to solar cells, it will also produce next-generation Starlink products. The company's IPO prospectus on Wednesday detailed this expansion plan.
Energy layout of the space AI data center
At the World Economic Forum in January, Musk stated that solar energy is a key solution to the energy bottleneck in artificial intelligence infrastructure. He announced an ambitious goal: Tesla and SpaceX will each establish 100 gigawatts of annual solar manufacturing capacity in the United States within the next three years, a figure far exceeding current domestic production. Musk had previously warned that the United States may face a power shortage crisis next year , believing that the biggest concern for AI development is not computing power, but energy supply.
The establishment of SpaceX's solar factory provides the energy foundation for its space-based AI data center plan. In a Bloomberg feature on space data centers , Musk pointed out that moving AI computing to orbit requires massive amounts of renewable energy support.
Current Status of the US Solar Energy Industry and the Background of the Trade War
Currently, the largest solar panel manufacturer in the United States is First Solar , with an annual production capacity of approximately 14 gigawatts using thin-film technology. According to a report released Thursday by the Clean Energy Association, the U.S. currently has an annual solar panel manufacturing capacity exceeding 60 gigawatts, but most of this is assembled from silicon-based cells manufactured overseas; there are only three silicon cell plants actually operating domestically.
The United States has imposed high tariffs on solar energy imports from China and Southeast Asian countries, stemming from complaints of unfair trade practices by domestic manufacturers. This also explains why SpaceX and Tesla chose to establish solar cell manufacturing lines in the United States.
Tesla simultaneously enters the solar energy manufacturing industry
Tesla is also laying the groundwork for solar manufacturing in Texas. According to an Electrek report on May 19, Tesla posted several solar manufacturing-related job openings in Brookshire, near Houston, where the factory is also planned to build Megapack batteries.
Tesla CFO Vaibhav Taneja revealed in an April conference call with investors that the company had begun placing orders for solar panel manufacturing equipment. However, Chinese government intervention has led to a ban on the export of high-end solar panel manufacturing equipment to Tesla by supplier Suzhou Maxwell Technology . Musk hoped to ease the situation by accompanying the Trump administration on its recent visit to China, but the effectiveness remains unclear.
The ecosystem of Barstow Space City
The Barstow area, where SpaceX's solar factory is located, is gradually becoming a hub for Musk's empire in Texas. This month, SpaceX also applied for Business District certification for the Barstow site, which, once approved, will qualify it for certain tax benefits. The area is already home to Musk's tunneling company, The Boring Company, and xAI facilities, and also provides amenities such as employee supermarkets, schools, and company-owned housing.
Noah Cowles, SpaceX’s Director of Solar Production, said on LinkedIn that the company is building “ one of the world’s most advanced solar cell factories ” and is recruiting engineers for the factory.
