Everything You Need to Know About Musk’s ‘Self-Growing’ Moon City as He Races to ‘Secure the Future of Civilization’

Elon Musk is revising his vision for SpaceX by shifting the company’s primary focus from colonizing Mars to building a city on the lunar surface. While Mars remains the long-term goal, Musk now argues that a “self-growing” city on the moon is a vital, faster stepping stone to “secure the future of civilization.” This strategic pivot is not just about exploration,it is a calculated move to establish a sustainable off-world testing ground while addressing the critical bottlenecks of energy and cost that currently restrict both space travel and artificial intelligence.

The timeline for this lunar expansion seems optimistic. SpaceX aims for “Starship cargo flights to the lunar surface for research, development, and exploratory missions” to start in 2028, which would be the first time a vessel has reached the moon’s surface in over 50 years. However, in order to achieve this plan, Musk first must solidify the success of Starship achieving full reusability.

The economics of full reusability are transformative. Musk estimates it could drop the cost of access to space by a factor of 100, effectively making spaceflight as affordable as air freight. Musk noted during recent discussions at Davos that full reusability would effectively make fuel the primary cost of space exploration, emphasizing that this is the fundamental requirement for making a lunar city cost-effective. Without this drop in price, the massive logistics required to build a self-sustaining colony would be financially overwhelming.

The Energy Issue

A primary restraint for the lunar city is the escalating global demand for energy, which Musk identifies as a critical bottleneck for modern industrial and technological growth. During recent discussions, he noted that the relatively stagnant growth of global electricity generation is not keeping up with the expansion of high-tech infrastructure. With traditional power grids struggling to keep pace with data center requirements, Musk argues we are rapidly approaching a ceiling where ground-based power can no longer support the next generation of innovation.

His solution is to move heavy-infrastructure projects to the Earth’s orbit. By moving energy-intensive operations into space, Musk aims to tap into an environment that is ideal for efficiency. Solar energy in orbit is roughly five times more effective than on Earth, providing a virtually infinite and uninterrupted power source. This energy shift would greatly expand our capacity for energy usage, and according to Musk’s projections, will make space the most cost-efficient location for large-scale power consumption if the reusability problem can be solved.

Funding the Venture

Building a lunar city requires substantial capital. In order to secure these funds, Musk is preparing for a massive financial restructuring. SpaceX is reportedly set to IPO this year after a merger with Musk’s artificial intelligence company, xAI. This combined entity is already valued at over $1 trillion, helping provide the finances needed to achieve his goals for space infrastructure. This capital accumulation is further supported by government contracts and strategic partnerships, such as the recent deal with T-Mobile (TMUS), which continues to solidify SpaceX’s revenue streams.

The Bottom Line

The ultimate goal of the lunar city is self-sustainability. 

Musk believes this can be achieved in less than 10 years, but critical restraints to the plan remain. By establishing a permanent presence on the moon, Musk could change the future of the human species and how we interact with the solar system. If the cost of space truly falls and allows space travel to become more efficient, the lunar city stands as the first physical manifestation of a new, off-world economy. 

By leveraging the unique environment of space, this lunar expansion aims to solve Earth’s most pressing resource constraints, turning the moon into a vital industrial asset.