SpaceX has bought $329M worth of Tesla Megapacks so far this year

SpaceX has ramped up purchases of Tesla Megapack, spending $295 million on the battery storage devices in the second quarter and $329 million so far this year, according to the company’s earnings report released on Tuesday. The purchase illustrates just how interconnected Elon Musk’s universe of companies are.

Why is SpaceX buying Tesla Megapacks?

The industrial-scale batteries are likely being deployed at the company’s xAI data centers. Before xAI merged with SpaceX, the AI company bought $430 million worth of Megapacks for its data centers. In the first quarter of this year, xAI had purchased only $34 million worth of the equipment. SpaceX also reported that as of December 2025, it had acquired $131 million worth of Tesla Cybertrucks at manufacturer’s suggested retail price, according to its regulatory filing.

How do Megapacks support AI data centers?

Though xAI has leaned heavily on natural gas to power its data centers — including dozens of unpermitted turbines at a site in Mississippi not far from the Colossus data center project — large batteries like the Megapack are still a critical part of data centers. In addition to providing substantial backup power that can be tapped in a second or less, batteries can provide extra power to GPUs when they demand it. AI data centers don’t draw power consistently. Rather, their power demand ramps up and down depending on the demands of training AI models and running inference. Such peaks can incur significant charges from a local utility or overwhelm on-site generators. Batteries help smooth out those peaks, lowering costs while ensuring that the data center can operate consistently.

What does this mean for the energy and AI industries?

The growing use of battery storage at AI data centers highlights a broader trend: as AI workloads expand, so does the need for flexible, reliable power solutions. Tesla’s Megapack is becoming a key component in bridging the gap between intermittent renewable energy and the constant, high-power demands of AI infrastructure. For SpaceX, the purchase also underscores the financial synergies within Musk’s corporate network, where capital flows between companies to support shared technological goals.

Conclusion

SpaceX’s significant investment in Tesla Megapacks this year reflects the increasing importance of energy storage in AI operations. By integrating these batteries into xAI’s data centers, the company aims to manage power costs and ensure operational stability. This move not only strengthens Tesla’s energy business but also demonstrates how Musk’s ventures are strategically aligned to leverage each other’s technologies.

FAQs

Q1: What are Tesla Megapacks?
Tesla Megapacks are large-scale battery storage systems designed to store and supply electricity for grid and industrial applications, including data centers.

Q2: Why are batteries important for AI data centers?
AI data centers have variable power demands; batteries provide backup and peak shaving, reducing costs and ensuring consistent operation.

Q3: How does this purchase affect Tesla’s business?
The purchase boosts Tesla’s energy division revenue and validates the Megapack’s role in supporting high-growth AI infrastructure, potentially attracting other tech companies.