Products for Data Centers Lead to Billions in U.S. Spending

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

According to Industrial Info Resources data, there are billions worth of capital projects for making products used by data centers, including Elon Musk's $55 billion Terafab semiconductor project. Other high-dollar projects include a major semiconductor investment from Intel and Ford's new BESS manufacturing, while lower investment is for a variety of products.

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U.S. Data Center Demand

Data centers are in high demand across the U.S. According to Industrial Info Resources data, developers plan to start construction on 2,966 data centers valued at approximately $2.59 trillion over the 2026-2030 period. Subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Industrial Manufacturing Project Database can view a list of detailed project reports.

For more information, see May 6, 2026, article - Actual, Planned Capital Investments in U.S. Data Centers Soar.

However, IIR does not believe all planned data centers will be constructed on schedule amid some major headwinds such as local opposition to planned construction.

Terafab

Elon Musk is planning to build a massive semiconductor chip-manufacturing plant ("Terafab") about 120 miles east of Austin, Texas, that would handle each step of chip production; a recent public hearing notice filed with Grimes County states the first phase would cost at least $55 billion--with an estimated total capital investment of $119 billion for any additional phases.

SpaceX is seeking a property tax abatement agreement from the county. The public hearing is scheduled for June 3.

The filing says SpaceX "proposes construction of a multi-phase, next-generation, vertically integrated semiconductor manufacturing and advanced computing fabrication facility."

IIR is tracking the first phase with a potential kickoff date next year, although plenty of factors could delay or otherwise alter the project's timeline and/or investment.

The GMI database offers key details--including necessary equipment--for the proposed first phase of Terafab as well as the subsequent projects.

Terafab would manufacture chips for SpaceX, Tesla and xAI. Musk said in a recent post on X that xAI "will be dissolved as a separate company" and will be called SpaceXAI.

About 80% of the chip production would be allocated for powering orbital artificial intelligence satellites for space-based data centers, and the remaining for traditional data centers. Space-based data centers are viewed as a potential alternative due to their ability to bypass power bottlenecks and public backlash around data center construction.

In April, Intel announced it would be joining the project to help "design, fabricate, and package ultra-high-performance chips at scale."

Intel is building a $14 billion semiconductor-fabrication plant in New Albany, Ohio (Project Cardinal), where production of chips for data centers and other applications is expected to begin in 2030. It is unclear if this will support Terafab. Readers can view the project report.

Ford's BESS Manufacturing

Through its newly formed Ford Energy division, Ford is planning to manufacture battery-energy storage systems for data centers as well as utility-scale power grids and residential power supplies.

Efforts to do so include a $2.3 billion plant conversion in Glendale, Kentucky, to enable production of commercial BESS units for data center backup and power generation. Ford is aiming for first production in 2027.

In a note on May 12, Morgan Stanley analyst Andrew Percoco said there is a "fairly high likelihood" Ford will announce supply agreements with large commercial customers, and potentially hyperscalers, over the next few months.

Other Capital Projects

IIR is tracking Corning's planned grassroot fiber-optic cable manufacturing plant in Newton, North Carolina, which will support a previously announced agreement to supply Meta with $6 billion of fiber-optic cabling through 2030. IIR's project report suggests construction could begin later this year.

For more information, see January 28, 2026, article - Corning Signs $6 Billion Deal to Supply Meta with Fiber-Optic Cable.

As part of a $165 million investment plan to support U.S. data center growth, Siemens looks to renovate its Spartanburg Industrial Electrical Equipment Plant in South Carolina to manufacture lighting panels. Construction could begin later this year.

Projects under construction include ABB Incorporated's $35 million expansion of its plant in Pinetops, North Carolina, which will boost production of sensors, disconnect switches and grid protection equipment for data centers and other applications.

Readers can view the two project reports.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Key Takeaways

• Industrial Info Resources is tracking billions worth of projects to make products used by data centers.
• High-dollar projects include Elon Musk's $55 billion Terafab semiconductor project and a major Intel investment in Ohio.
• Ford's BESS manufacturing unit could announce supply agreements, potentially with hyperscalers, in the near future.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).