According to Sawyer Merritt on Twitter, Elon Musk's xAI is significantly expanding its AI datacenter infrastructure in Tennessee by installing dozens more Tesla Megapacks. These new installations are in addition to the $400 million worth of Megapacks already deployed at the site in recent months (Source: Sawyer Merritt, @SawyerMerritt, Twitter, Jan 5, 2026). This upgrade highlights a growing trend in the AI industry toward integrating advanced energy storage solutions for large-scale AI model training and deployment. The use of Tesla Megapacks allows xAI to support high-density compute operations more sustainably, offering clear business advantages in energy reliability and operational scalability for AI datacenters.

According to Sawyer Merritt, citing William Blair analyst Jed Dorsheimer, Tesla's stock valuation is now driven by its transformation into a real-world AI leader, particularly through its robotaxi and Optimus initiatives. The analyst highlights that Tesla’s Megapack energy storage solution is expected to become a critical infrastructure component for AI data centers in 2026. This marks a significant business opportunity for Tesla as demand for AI-driven data processing and storage grows, positioning Megapack as a key enabler of large-scale AI deployments (Source: Sawyer Merritt on X, Jan 3, 2026).

According to @SawyerMerritt, Elon Musk's xAI is deploying over $375 million worth of Tesla Megapacks at its new Colossus 2 supercomputer cluster in Memphis. This strategic move enables xAI's data centers to rapidly scale AI computing workloads while enhancing power reliability and efficiency. The integration of advanced energy storage technologies is designed to support exponential AI progress, lower operational costs, and improve environmental cleanliness, providing significant benefits to both xAI’s AI infrastructure and the local community (source: x.com/xAIMemphis/status/1991158890453459029).