Elon Musk Quietly Ramps xAI’s Power Backbone With New Tesla Megapacks At Massive Tennessee Site

• xAI added more Tesla Megapacks to its Tennessee data center, expanding on recent large-scale installations.
• The move supports xAI’s growing Colossus data center footprint.
• The buildout comes ahead of broader Grok deployments planned for 2026.

Elon Musk is expanding the power backbone of xAI’s flagship data center complex in Tennessee, with new installations of Tesla-manufactured energy storage systems at the site.

Tesla investor and influencer Sawyer Merritt said in a post on X that xAI is installing at least dozens more Tesla Megapacks at the company’s massive Tennessee facility. The additions come on top of about $400 million worth of Megapacks that were installed at the site over the past couple of months, he added.

xAI Scales Up Its Memphis Footprint

The added Megapacks are part of xAI’s broader Colossus infrastructure build-out, centered around a rapidly expanding data center footprint in the Memphis region. xAI already operates one large facility in the city, known as Colossus, and is constructing a second nearby site dubbed Colossus 2.

xAI also purchased a large warehouse in Southaven, Mississippi, intended to support its Memphis operations. Musk previously said that Colossus 2 could eventually house around 550,000 Nvidia chips, a scale that would require tens of billions of dollars in investment and large on-site power capacity.

xAI Adds A Third Power Hub

Last week, Musk confirmed that xAI has acquired a third facility, referred to as “Macrohardrr,” which would take the company’s total training compute capacity to nearly 2 gigawatts once fully operational. 

The power build-out comes as xAI prepares for broader Grok deployments in 2026, which will require significant energy resources to support large-scale AI training and inference workloads.

Tesla Energy Steps Into The Spotlight

The xAI expansion also highlights the growing role of Tesla’s energy storage business in large infrastructure projects. Tesla deployed a record 14.2 GWh of energy storage products in the fourth quarter, up from 11 GWh a year earlier, even as its vehicle deliveries declined.

Tesla has been expanding its energy portfolio with products such as the Megapack, Powerwall, and the recently unveiled Megablock, a utility-scale, plug-and-play system designed for large installations. The company said that demand for its energy storage products remains strong and that it plans to open a third megafactory in Houston in 2026, in addition to existing facilities in California and Shanghai.

How Did Stocktwits Users React?

On Stocktwits, Tesla’s retail sentiment was ‘extremely bullish’ amid ‘extremely high’ message volume, while xAI sentiment was ‘bearish’ with ‘low’ message volume.

Tesla’s stock has risen 8.5% over the past 12 months.

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