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Tesla deployed a grid-connected battery system at xAI's Colossus 2 data center in Memphis that provides storage capacity between 2.8 and 3.3 GWh. The installation utilizes 720 Megapacks to deliver 720 MW to 1.4 GW of power output to backstop the facility's GPU-heavy operations, marking the largest such system in the US. The site charges during off-peak hours to discharge during demand spikes, reducing reliance on temporary natural gas turbines.
xAI and SpaceX invested roughly $1 billion in the Megapacks and related equipment from 2024 to mid-2026. The Tennessee Valley Authority board granted approval for a direct grid connection to the Memphis facility in August 2026 to support the energy storage project.
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Key sources
- SOURCE@kalshi“Tesla built the largest grid battery in the US at xAI's Memphis site with 720 Megapacks”x.com
- SUPPORT@0xzxcom“between 2024 and mid-2026, xAI and parent company SpaceX directed roughly $1 billion toward Tesla Megapacks and related equipment”x.com
- SUPPORT@bert_gilfoyle“A July satellite image shows 720 Tesla Megapacks at the site”x.com