xAI Reveals Photo of 420 Tesla Megapacks at Memphis Colossus 2 Datacenter

Following the initial announcement of its Colossus 2 supercomputer, xAI has shared a photo of approximately 420 Tesla Megapacks—valued at $400 million—installed at the Memphis facility, marking the world's largest energy storage system.

Building on the December 10 reveal of xAI's Colossus 2 supercomputer—the world's largest and most powerful data center—xAI has now disclosed a photograph of its extensive Tesla Megapack deployment at the Memphis site.

This installation includes around 420 Megapacks, an investment of about $400 million, surpassing previous estimates of $375 million. The system ensures reliable power for the datacenter's AI workloads, highlighting xAI's and Tesla's collaboration on scalable infrastructure.

As the largest battery energy storage facility globally, it supports Colossus 2's high computational demands and positions the project as a leader in sustainable AI computing.

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Illustration of Tesla's Terafab, the largest chip factory, with Optimus robots, solar satellites, and Elon Musk announcing the project.
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Tesla announces massive Terafab chip factory

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Tesla has announced Terafab, described as the largest chip manufacturing facility ever, in collaboration with SpaceX and xAI. The facility aims to produce 1TW of chips per year to support ambitious projects like solar-powered satellites and millions of Optimus robots. Elon Musk stated it requires thousands of acres and over 10GW of power.

Tesla is constructing a $250 million battery energy storage system using Megapack units in Reno, Nevada. The facility will include 256 units arranged in 16 clusters. Sawyer Merritt first reported the project on April 3, 2026.

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Tesla is constructing a new $100 million Megapack battery energy storage facility in Australia. The project aims to balance solar generation variability and provide power for 145,000 homes.

Hut 8 announced a 15-year lease valued at $9.8 billion for a large-scale AI data center in Texas, sending its shares up nearly 30 percent on Wednesday. The deal covers 352 megawatts of capacity at the company's Beacon Point campus and includes options that could raise the total value to $25.1 billion.

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Permits for 11 natural gas-powered data centers across the United States project annual greenhouse gas emissions exceeding 129 million tons—more than Morocco released in 2024. Linked to AI companies OpenAI, Meta, Microsoft, and xAI, these facilities underscore the fossil fuel reliance in the data center boom fueling AI expansion, according to a WIRED review of air permit documents.

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