xAI is enhancing its Colossus 2 data center in Memphis with 168 Tesla Megapacks to support its AI supercomputer expansion.
The Megapacks will provide battery storage backup to Colossus 2, which aims to be the first Gigawatt AI training supercluster.
xAI plans to scale Colossus up to 1 million GPUs and reduce its carbon footprint through cleaner backup power sources like Megapacks.
Tesla Energy's Q1 2025 performance supports xAI's expansion, and the strategic use of Megapacks positions xAI to compete with AI leaders while focusing on efficiency and sustainability.