- xAI is installing additional Tesla Megapacks at its Tennessee data center to expand on recent large-scale energy storage deployments.
- The new Megapacks support xAI’s growing Colossus data center footprint, including an under-construction Colossus 2 and nearby support facilities.
- Construction and power upgrades aim to enable broader Grok deployments planned for 2026.
- Tesla’s energy division reported a record 14.2 GWh deployed in the fourth quarter, and the company is rolling out larger products such as the Megablock and a planned Houston megafactory in 2026.
- Social sentiment shows strong retail enthusiasm for Tesla and weaker sentiment for xAI; Tesla stock is up about 8.5% over the past year.
Elon Musk is expanding the power backbone of xAI’s Tennessee data center by adding more Tesla Megapacks at the Memphis-area site to scale AI training and inference operations ahead of broader Grok deployments planned for 2026. The installations bolster on-site energy capacity needed for larger compute builds.
Sawyer Merritt said in a post on X that xAI is installing at least dozens more Megapacks, on top of roughly $400 million worth of Megapacks deployed at the facility in recent months. The added storage follows earlier large-scale Tesla installations at the same complex.
The Megapacks are part of a broader infrastructure push around the Colossus campus. xAI operates one major data center in Memphis, is building Colossus 2 nearby, and purchased a warehouse in Southaven, Mississippi, to support regional operations. Musk has said Colossus 2 could eventually house about 550,000 NVIDIA chips, a scale that would require tens of billions of dollars and significant local power.
Musk also confirmed acquisition of a third facility referred to as “Macrohardrr”, which would raise the company’s total training compute capacity to nearly 2 gigawatts once fully operational. Those power upgrades are intended to back the larger AI workloads planned for 2026.
The expansion highlights Tesla’s role in utility-scale energy storage. Tesla deployed a record 14.2 GWh of energy storage products in the fourth quarter, up from 11 GWh a year earlier, and has added offerings like the Megablock while planning a third megafactory in Houston for 2026. On Stocktwits, retail sentiment for Tesla was described as “extremely bullish” amid “extremely high” message volume, while xAI sentiment was labeled “bearish” with “low” message volume. Tesla stock has risen about 8.5% over the past 12 months.
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