Tesla Megapack batteries are powering the xAI Colossus supercomputer in Memphis, ensuring power stability for the AI startup. xAI is using Tesla Megapacks to manage outages and demand surges, enhancing the reliability of the facility.
Colossus, connected to a 150-megawatt substation, is completing its first phase, addressing environmental concerns by phasing out natural gas turbines. About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation is completed, which is planned for the Fall of 2025.
From January 2024 to February 2025, xAI invested $230 million in Megapacks. Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products. Tesla is also planning a new Megapack factory in Waller County, Texas, expected to create 1,500 jobs.