Tesla is expanding its energy storage operations with a third Megapack factory set to open near Houston in late 2026. The facility will produce the new Megapack 3/Megablock product at an annual capacity of 50 GWh, underscoring the company's focus on AI-driven grid solutions amid surging renewable energy demands.
Industry commentator Sawyer Merritt highlighted Tesla's remarkable energy storage growth in a January 2, 2026 post, announcing that a third Megapack factory will come online later that year near Houston, Texas. The facility is designed to manufacture the latest Megapack 3/Megablock product at an annual capacity of 50 GWh.
This builds on recent advancements, including the $500 million Megapack system unveiled in California in December 2025, which provides clean energy for about 467,000 homes. Tesla's deployments have grown from 1.65 GWh in 2019 to a projected 64 GWh in 2026.
The Houston plant emphasizes AI integration for grid optimization, load balancing, real-time analytics, and renewable energy support. It will enhance smart infrastructure for utilities and large-scale users, positioning Tesla as a leader in scalable storage amid global sustainability trends.