SpaceX has significantly increased its acquisition of Tesla’s Megapack battery storage systems, spending $295 million during the second quarter and a total of $329 million this year, as highlighted in the company’s latest earnings report released on Tuesday.
This acquisition underscores the close relationship between Elon Musk’s various ventures. Musk, who serves as both CEO and the primary stakeholder of SpaceX, is also at the helm of Tesla. His artificial intelligence enterprise, xAI, took over the social media platform X in 2025, and earlier this year, SpaceX integrated xAI into its operations.
The large-scale batteries are expected to be utilized at xAI’s data centers. Prior to its merger with SpaceX, xAI had already invested $430 million in Megapacks for its facilities. In the first quarter of this year alone, xAI’s investment in this technology was only $34 million. Additionally, SpaceX disclosed that by December 2025, the company had procured $131 million worth of Tesla Cybertrucks based on the suggested retail price, according to its regulatory filings.
While xAI has relied significantly on natural gas to energize its data centers—utilizing several unpermitted turbines at a Mississippi site close to the Colossus data center project—large batteries like the Megapack remain essential for powering these facilities.
These batteries provide not only robust backup power that can be accessed almost instantly but also deliver additional energy to GPUs when needed. The power consumption at AI data centers is not uniform; it fluctuates based on the requirements of training AI models and performing inference tasks.
During peak demand periods, the costs from local utilities could spike significantly or local generators could become overwhelmed. Batteries help mitigate these fluctuations, reducing expenses while ensuring that data centers maintain consistent operations.
