SpaceX ramping up Tesla Megapack battery purchases in Q2 to power xAI Colossus AI data center facility

SpaceX ramped up spending on energy products from CEO Elon Musk's other company, Tesla, during the period ending June 30, 2026, according to financial filings. Musk's aerospace and defense conglomerate purchased $295 million worth of Tesla Megapacks—battery energy storage systems—that SpaceXAI has been installing to help power its Colossus data centers in the Greater Memphis area. The second-quarter purchases bring SpaceX's half-year total spending on Tesla Megapacks to $329 million.

Megapacks are used for business and utility-scale developments, and Tesla's newer Megablocks combine four Megapacks around one transformer. The systems use lithium-ion or other battery cells and help data centers and utilities avoid blackouts by storing energy from all sources, including fossil fuels and renewable and intermittent sources like solar and wind. Top competitors in the market, according to research by Wood Mackenzie, include China's Sungrow, BYD, and CATL, Korea's LG, and U.S.-based Fluence, among others.

At the SpaceXAI Colossus and Colossus 2 facilities in Greater Memphis, the company has also installed and used dozens of natural gas-burning turbines for power generation. Emissions and noise from the turbines have sparked community uproar and fueled a national backlash against data center developers, with Greater Memphis residents complaining of smell, health problems, noise, and air pollution. The NAACP sued SpaceXAI—formerly known as xAI—in federal court in Mississippi to try to stop the company from continued use of the turbines without pollution controls or federal permits.

On SpaceX's second-quarter earnings call, Musk outlined expansion plans. "Our tentative target is to actually have 20 gigawatts of power and cooling live online by the end of next year," he said. Some projects "won't pan out exactly on time," he added, "but I would expect that we'd still probably have at the power plant level, something close to 15 gigawatts."

Last year, before SpaceX became publicly traded, the company bought $506 million of Megapack products from Tesla and spent another $131 million on Tesla Cybertruck vehicles, which it said were purchased at manufacturer's suggested retail prices without discounts. SpaceX did not disclose any further Cybertruck purchases in the first half of 2026.