# Grimes County Approves SpaceX Terafab Agreement

Grimes County, Texas, has formalized a tax abatement and economic development agreement with SpaceX for its proposed Terafab semiconductor manufacturing facility near Gibbons Creek Reservoir. The agreement mandates a minimum investment of **$5 billion by 2030** and the creation of **1,800 jobs by 2035**, alongside a 10-year property tax abatement starting in 2027. SpaceX is also responsible for infrastructure development obligations tied to the facility, with tax collections resuming after 2036. This deal presents significant procurement opportunities for contractors specializing in infrastructure, utilities, and construction services supporting large-scale semiconductor manufacturing operations.

- **Why this matters:** The scale and timeline of SpaceX's investment indicate substantial demand for construction, utility installation, and infrastructure development contracts in Grimes County over the next decade.
- Procurement professionals should prepare for long-term engagement opportunities related to site development, facility construction, and utility upgrades tied to the Terafab project.
- Local and regional contractors may benefit from early involvement in infrastructure projects to support SpaceX's facility requirements and compliance with tax abatement conditions.
- This agreement underscores the growing importance of semiconductor manufacturing infrastructure in Texas, signaling potential future procurement activity in related sectors.

**Jurisdictions:** sled
**Industries:** Construction & Infrastructure, Energy & Utilities
**Topics:** Physical Infrastructure
**Published:** June 07, 2026

### Government Entities
- Grimes County
- Navasota Independent School District (Navasota ISD)
- Iola Independent School District (Iola ISD)
- Anderson-Shiro Consolidated Independent School District (Anderson-Shiro CISD)
- Pasco County

### Vendors
- SpaceX (prime contractor)

### Sources
- [Grimes County releases documents detailing SpaceX Terafab agreement](https://www.msn.com/en-us/news/us/grimes-county-releases-documents-detailing-spacex-terafab-agreement/ar-AA250jrk) - MSN