Grimes County takes no action on SpaceX tax abatement for proposed $119 billion project

May 6, 2026

ANDERSON, Texas — Grimes County commissioners took no action Wednesday on a proposed SpaceX development at Gibbons Creek Reservoir, about 20 miles east of Bryan-College Station.

County Judge Joe Fauth said SpaceX is the only company that has submitted anything for the county to consider. He said the project is far from a done deal.

“Well, there’s a right place for everything in trying to determine what is the right place for what’s being considered. That’s our job,” Fauth said. “At the end of the day, we will only consider what’s going to be a benefit to the county.”

Clarifying the project

Fauth said he wants to clear up what kind of project this is, pushing back on the data center label that has been circulating online.

“We keep saying data center, but if you look at the announcement that SpaceX made, it’s certainly far more manufacturing than it is data center, okay? So I think that’s one clarification that people need to understand,” Fauth said.

A public notice filed by Grimes County describes the proposed development as a semiconductor manufacturing and computing facility with an initial investment of about $55 billion. Total estimates show that number could climb as high as $119 billion.

The project is described as a vertically integrated semiconductor manufacturing and advanced computing fabrication facility. Fauth said it could use up to 5,000 acres of land at the reservoir and around 3,000 acres of surface water, with the potential to expand into surrounding areas.

Fauth said the Gibbons Creek site makes sense for a project of this scale.

“With the Gibbons Creek facility being a brown site, it’s already been industrialized once upon a time. With the reclamation, it’s not suitable for urban development or suburban development of any of that sort,” Fauth said. “So if we were going to have an industrial complex, let’s put it there.”

Resident concerns

Sheryl Gilbert lives near the reservoir and has concerns about who this decision is really for.

“I don’t feel like the people in charge care anything about the people of Texas. All they care about is money,” Gilbert said.

Gilbert said the proposed development is an unwelcome neighbor.

“[I’m] just irate over this situation,” Gilbert said. “I feel like they’re trying to turn Texas into something it was never meant to be. We moved out here for the wide open spaces and the stars at night, and they’re trying to turn it into some other state that doesn’t even look like Texas anymore.”

Fauth acknowledged not everyone will be satisfied, whatever the outcome.

“At the end of the day, we hope the decisions are made for the most of the citizens of the county that are the best decisions,” Fauth said.

What’s next

Fauth said the county will negotiate with SpaceX before making a decision.

“All’s I can say is we will have conversations with them and negotiating as to what we want, what they’re willing to give, and then we’ll make a determination on all that June 3rd,” Fauth said. “Some action will be taken. We’ll make a decision to go forward or we’ll make the decision to say all bets are off. You guys can go somewhere else.”

Elon Musk responded to a post about the proposed development on social media Wednesday, calling it “one of several locations under consideration for what will be the largest and most advanced chip fabrication facility in the world.”

This comes after Grimes County filed a public notice that SpaceX was looking to build a...
This comes after Grimes County filed a public notice that SpaceX was looking to build a semiconductor manufacturing and computing facility at the Gibbons Creek Reservoir.(Gray Media)

A formal public hearing is set for June 3 at 9 a.m. at the Grimes County Justice and Business Center in Anderson. Fauth said action will be taken at that meeting.

  

Search

RECENT PRESS RELEASES

Go to Top