xAI Expands Memphis Footprint with Dozens of Tesla Megapacks

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.