Largest AI Supercomputer in the World, Created by Elon Musk’s xAI, Begins Operating with Tesla Megapack Batteries and Clean Energy in Memphis.
The company xAI, the company developing Elon Musk’s AI, has achieved a technological and energy milestone in the United States. The Colossus supercomputer, developed to train artificial intelligence, now operates with electricity supported by Tesla Megapack batteries.
The facility reached full capacity of Phase I less than a year after construction began.
Infrastructure in Memphis
Located in Memphis, Tennessee, the Colossus is touted as the largest AI supercomputer in the world.
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Its main purpose is to train the Grok language model, used in the social media service X.
To operate stably, the facility was connected to a new electrical substation and received additional support from Tesla batteries.
The electricity supply comes from Memphis Light, Gas and Water (MLGW) and the Tennessee Valley Authority (TVA), totaling 150 megawatts.
This same capacity has been replicated in the Tesla Megapack batteries, used as an energy reserve.
High-Capacity Batteries to Train Elon Musk’s AI
Each unit of the Megapack has a capacity to store 3,900 kWh, equivalent to the charge of 62 Tesla Model 3 vehicles with rear-wheel drive.
With this system, xAI can maintain uninterrupted operations, even in cases of power outages, network instability, or consumption spikes.
The system also allows selling electricity back to the grid during peak demand hours.
According to the Greater Memphis Chamber, Musk’s company has already invested around US$ 230 million in Megapacks between January 2024 and February 2025.
Commitment to Memphis
The city’s Chamber of Commerce stated that the partnership between xAI and Tesla represents an advance in the region’s energy infrastructure.
The facility participates in MLGW’s Demand Response program and is exploring ways to supply energy to the local community during emergencies or supply crises.
According to an official statement, the Megapack system was installed precisely to ensure that the supercomputer continues operating even during critical periods for the power grid. This includes events such as consumption spikes or technical failures.
Transition to Sustainable Energy
Before connecting to the new substation, the facility relied on temporary natural gas turbines. With the arrival of electricity and Megapacks, these turbines began to be removed.
Only half will remain active during Phase II, which will feature a second substation under construction. After completion, the turbines will be kept only as a backup.
The Greater Memphis Chamber highlighted that this change represents a significant advancement in the quest for energy sustainability. The substitution of natural gas with Megapacks greatly reduces the use of fossil fuels.
Impact on the Future of Elon Musk’s AI
The change consolidates xAI and Tesla’s vision of operating large technological structures with a lower environmental impact.
With clean energy stored in batteries, Colossus gains more stability and the ability to operate continuously, which is essential for training AI systems like Grok.
The union of advanced computing and renewable energy can pave a new path for the development of artificial intelligence on a large scale. At the same time, it strengthens the local economy with cutting-edge infrastructure.
The expectation is that with xAI’s expansion in Memphis, the city will also advance in the technological and energy innovation landscape.

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