Tesla Megapack Batteries to Power xAI Colossus Supercomputer in Memphis
The partnership between Tesla and xAI takes center stage as Tesla Megapack batteries are set to power the xAI Colossus supercomputer in Memphis, ensuring power stability and reliability for the facility. This collaboration not only showcases the synergy among Elon Musk’s ventures but also highlights the commitment to sustainable energy solutions.
xAI, an artificial intelligence startup, has integrated Tesla Megapacks into the infrastructure of Colossus to manage outages and demand surges, bolstering the facility’s overall reliability. The recent connection of Colossus to a new 150-megawatt electric substation, as announced by the Greater Memphis Chamber, marks the completion of the first construction phase of the project. This transition addresses concerns raised by environmental justice groups over the initial use of natural gas turbines.
According to the Chamber, the temporary natural gas turbines that were previously powering the Phase I GPUs are now being demobilized and removed from the site. A portion of the turbines will remain operational to power Phase II GPUs until a second substation (#22) currently under construction is completed and connected to the electric grid in the Fall of 2025, at which point the remaining turbines will serve as backup power sources.
The rapid development of Colossus by xAI underscores the company’s ambition to advance AI capabilities. However, the project has faced scrutiny for its environmental impacts. The shift to using Tesla Megapacks and grid power is a step towards mitigating these concerns while ensuring operational continuity.
The deployment of Megapacks also highlights the collaborative efforts among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla’s significant year-over-year growth in Q1 2025, with a 156% increase in deployments of storage products, further solidifies its commitment to scaling energy solutions. The upcoming Megapack factory in Waller County, Texas, is expected to create 1,500 jobs in the area, showcasing Tesla’s dedication to expanding its energy solutions.
By leveraging Tesla’s Megapacks to power Colossus, xAI not only enhances the stability of the supercomputer but also demonstrates the interconnectedness of Musk’s business ecosystem. This collaboration positions xAI to drive AI innovation while propelling Tesla’s energy solutions to the forefront, paving the way for broader technological and economic impacts.