Image: Tesla
Elon Musk’s xAI is ramping up construction of its massive Colossus II supercomputer cluster in Memphis, with the company set to install more than $375 million worth of Tesla Megapacks on-site to power the project.
In a post shared by the official xAI Memphis account (@xAIMemphis) on X, the company said: “On site this week we continue to welcome the arrival of Tesla Megapacks! These Megapack batteries are large scale, containerized lithium-ion battery systems designed by Tesla for utility-scale and commercial energy storage.”
The update aligns with previous reports indicating that xAI plans to equip its new Memphis facility — a one-million-square-foot property the company purchased earlier this year — with a massive array of battery storage systems to support the rapidly expanding power requirements of its next-generation AI infrastructure.
Tesla’s Megapack is the company’s flagship utility-grade energy storage solution. Built for grid-scale deployment, each Megapack can store large amounts of energy and dispatch it dynamically to help stabilize demand, smooth out fluctuations, and integrate renewable sources like solar and wind into the grid. The technology has been adopted worldwide for major energy projects and continues to see surging demand.
Tesla secured a $2.7 billion Megapack order from Georgia Power in August, marking one of the largest grid-battery contracts ever signed. More recently, Tesla unveiled Megapack 3, a redesigned next-generation version capable of storing 5 MWh of usable AC energy per unit with a new architecture aimed at improving installation speed, efficiency, and long-term reliability.
Once online, xAI’s Colossus II cluster will rely on its Megapack array not just for energy storage, but as a stabilizing force for local supply — an increasingly vital consideration as AI supercomputers push electrical grids to their limits. With this deployment, xAI says the system will “protect and often improve power reliability, cost and cleanliness” for surrounding residents.
This marks one of the largest single-site applications of Tesla’s grid-scale storage technology to date and represents a major investment in Tennessee’s growing role in the U.S. AI and data center ecosystem.
