SpaceX boosts Tesla Megapack spending in Q2 to power AI data centers

SpaceX significantly increased its purchases of Tesla energy storage systems in the quarter ending June 30, 2026, according to financial filings. The aerospace and defense company spent $295 million on Tesla Megapacks, which SpaceXAI has been installing to power its Colossus data centers in the Greater Memphis area. That brings SpaceX's total Megapack spending in the first half of the year to $329 million.

Megapacks are battery energy storage systems for business and utility-scale projects. Tesla's newer Megablocks combine four Megapacks around a transformer. The systems use lithium-ion or other battery cells and help data centers and utilities avoid blackouts, storing energy from a range of sources including fossil fuels, solar, wind, and other renewables. Research firm Wood Mackenzie lists competitors such as China's Sungrow, BYD, and CATL, Korea's LG, and U.S.-based Fluence.

At SpaceXAI's Colossus and Colossus 2 sites near Memphis, dozens of natural gas-burning turbines have also been installed for power generation. Area residents have complained about odor, noise, air pollution, and health problems, helping fuel a wider backlash against data center developers. The NAACP has sued SpaceXAI, formerly xAI, in federal court in Mississippi, aiming to halt turbine use without pollution controls or federal permits.

On SpaceX's second-quarter earnings call, Musk said the company is targeting 20 gigawatts of power and cooling online by the end of next year. He acknowledged some projects will miss that timeline and expect around 15 gigawatts at the power plant level. Last year, SpaceX purchased $506 million in Megapacks from Tesla and $131 million in Cybertrucks at manufacturer's suggested retail prices. Those vehicle purchases came as consumer interest waned and after multiple safety recalls. No further Cybertruck purchases were disclosed in the first half of 2026.

Source: CNBC