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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Artist's rendering of Tesla's new 50 GWh Megapack factory near Houston, highlighting battery production amid renewable energy infrastructure.
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Tesla Announces Third Megapack Factory Near Houston for Late 2026

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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.

Elon Musk met with SpaceX's Brent at midnight to oversee xAI's new Colossus 2 supercomputer, set to become the world's largest and most powerful data center. The facility is incorporating over $375 million worth of Tesla Megapacks for sustainable energy to support advanced AI workloads.

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xAI has acquired a third building to expand its AI infrastructure, boosting total training compute to nearly 2 gigawatts. This setup includes a $400 million Tesla Megapack energy storage system and will pair with over $30 billion in GPUs once fully built. The project positions it as the most powerful AI compute facility globally, though future developments may dwarf it.

Tesla has secured a $170 million order to supply 168 Megapack units for a 150 MW/600 MWh battery energy storage system at TagEnergy's Golden Plains Wind Farm in Victoria, Australia. The project will pair the southern hemisphere's largest wind farm with onsite storage to enhance grid reliability. Construction is set to begin early next year, with completion expected in mid-2027.

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Elon Musk announced on February 2, 2026, that his SpaceX company has acquired his AI startup xAI, aiming to build orbital data centers to meet surging electricity demands for artificial intelligence. The merger integrates AI, rockets, and satellite technology to create a vertically integrated innovation engine. Musk envisions this enabling advancements like Moon bases and Mars colonization.

Elon Musk addressed xAI employees at a companywide meeting in San Francisco last week, expressing optimism about the firm's future in the race for artificial general intelligence. He emphasized the importance of scaling data centers and securing funding to outpace competitors. Musk also speculated on innovative ideas like space-based data centers.

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France-based engineering firm SPIE has signed a three-year framework agreement with Tesla to standardize deployment of Megapack battery energy storage systems (BESS) in Europe, building on projects in the Netherlands, France, and Belgium, and expanding into Poland and Germany. Highlights include the $366 million, 1.4 GWh Mufasa facility in the Netherlands.

 

 

 

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