Elon Musk's AI startup xAI is set to deploy more than $375 million worth of Tesla Megapack battery energy storage units at its Colossus II supercomputer cluster in Memphis, Tennessee.

In a post on the company’s X account, it said: “On site this week, we continue to welcome the arrival of Tesla Megapacks! These Megapack batteries are large-scale, containerized lithium-ion battery systems designed by Tesla for utility-scale and commercial energy storage.”

The Tesla Megapack battery is a lithium-ion-powered utility-scale battery energy storage unit. According to the company, each unit can store more than 3.9MWh of energy and is deployed in containerized units, enabling modular scalability.

The Megapacks are being deployed at xAI’s second Colossus site in Memphis. The Elon Musk-backed company acquired the 1 million sq ft (92,905 sqm) property earlier in the year for a reported $80 million. In total, the company purchased three parcels of land at 5400 Tulane Road, Whitehaven, through its affiliate CTC Properties.

The plot is close to the Southaven Combined Cycle natural gas power plant owned by Tennessee Valley Authority, which generates 780MW of power. According to company officials, the data center could host up to 350,000 GPUs.

It has been reported that, to power the facility, xAI will import an entire power station. The configuration and capacity of the power plant have yet to be disclosed. The company got in hot water earlier this year, following revelations that it had deployed large amounts of gas turbines at its Colossus I data center without permission.

Environmental groups claimed that xAI did not obtain the necessary permits to legally operate the 26 natural gas turbines that were installed on the site to power its operations. In May, it was revealed that the company had installed 168 Tesla Megapacks at the site to replace some of the turbines.

xAI launched its first Colossus supercomputer last year, at a new data center housed in a former Electrolux factory in Memphis’s Boxtown district. The facility reportedly runs around 100,000 GPUs, but Musk said it would eventually like to run one million GPUs in Memphis.