Elon Musk’s artificial intelligence company xAI has powered up its massive Colossus supercomputer with Tesla Megapack batteries, marking a significant step toward uniting advanced AI computing with sustainable energy infrastructure.
Located in Memphis, Tennessee, the world’s biggest supercomputer, whose aim is to train the company’s AI language model, Grok, and support the social media service X, officially reached full operational capacity for Phase I, less than a year after the start of its construction.
The facility is reportedly now connected to a newly constructed electric substation delivering 150 megawatts of power from Memphis Light, Gas and Water (MLGW) and the Tennessee Valley Authority (TVA).
Furthermore, 150 megawatts of Tesla Megapack batteries have been installed to serve as a stored energy backup, ensuring the facility can maintain operations during power outages, voltage fluctuations, and periods of peak demand.
Reinforcing AI infrastructure
According to the Greater Memphis Chamber, one of the city’s oldest institutions and the region’s lead economic development organization, the use of Tesla’s utility-scale batteries underlines the deepening ties between Musk’s companies.
Data indicates that xAI has invested approximately USD 230 million in Tesla Megapacks from January 2024 to February 2025, which now play a crucial role in stabilizing the energy demands of high-performance, data-intensive infrastructure like Colossus.
The rechargeable lithium-ion batteries, each capable of storing around 3,900 kWh of electricity – equal to 62 Tesla Model 3 rear-wheel drive cars – ensure uninterrupted AI processing power while offering the potential to sell energy back to the grid at higher prices.
As part of its commitment to the city, xAI is participating in MLGW’s Demand Response program and is exploring opportunities to contribute power to the community in times of need.
“xAI was connected to a newly constructed electric substation (#63) from which it is now receiving 150MW of grid power from MLGW and TVA,” said the Greater Memphis Chamber in a press release.
“Additionally, 150MW of Megapack Batteries for stored energy backup have been integrated into the operation, to help the system ride through outages, or demand response events during times of peak grid demand,” it continued.
Sustainable energy shift
Before the facility was connected to the new substation, it relied on temporary natural gas turbines to power its GPU clusters. Now that Tesla Megapacks and utility power are in place, those turbines are being removed.
Roughly half will remain in use for now to support Phase II of the project, which includes another electric substation currently under construction. Once completed in fall, the remaining turbines will serve only as backup.
The Greater Memphis Chamber pointed out that the new energy infrastructure signals a shift toward cleaner, more sustainable operations. With the Megapacks in place, xAI is significantly reducing its dependence on temporary natural gas, aligning more closely with Tesla’s mission to accelerate the world’s transition to sustainable energy.
“The company is participating in the Demand Response program as outlined by MLGW and is exploring ways to provide energy to the grid for the benefit of the community, especially in emergency situations or other times of need,” concluded the organization. “As xAI grows, so will Memphis.”