Taiwan's Apollo Power Orders 260 Tesla Megapacks for AI Grid

AUSTIN, Texas — Tesla's energy business has landed another marquee customer, with Taiwanese power firm Apollo Power signing for 260 Megapack 2XL units, roughly 1 gigawatt-hour of storage, to anchor a wave of AI-era grid projects. The order, signed October 8 with Tesla's Taiwan energy arm and disclosed in Apollo's filing with the Taiwan Stock Exchange, is a bet that electricity, not chips, will set the pace of the island's data center expansion.

Locking In Supply Early

Apollo plans to use the Megapacks for behind-the-meter storage and resilient grid projects, with deliveries beginning in batches at the end of 2027 and sites coming online in 2028. Neither company disclosed a price, citing a confidentiality agreement, and Apollo intends to fund the purchase through a cash capital increase and bank financing. Much of the 260-unit commitment looks like an early reservation of scarce supply: about 33 units are under signed customer contracts with roughly 150 more in negotiation, and Apollo's chairman has pointed to tight global supply of large-scale storage as the reason to secure capacity now. That urgency echoes the demand story behind Tesla's record 15.9 GWh of energy storage deployed in the third quarter.

An Alliance for the AI Grid

The order is the centerpiece of a new AI data center and grid-resilience alliance Apollo has formed with Phison, Gigabyte and Shihlin Electric. A pilot at Phison's Zhunan plant installed grid-forming Megapack 2XLs back in June, and Tesla Energy Taiwan general manager Sun Hsiao-Han said the project went from demonstration to a 1 GWh plan in just four months. The momentum fits a global pattern for Tesla Energy, which has now deployed more than 50 GWh worldwide and keeps stacking utility-scale wins like its 1-TWh-a-year Arizona solar megaproject.

Storage Meets Silicon

Part of the appeal is credibility at the cutting edge of computing. The Megapack 2XL was named among the first products in Nvidia's DSX Ready qualification for battery storage in AI factories, a stamp that matters as hyperscalers scramble for firm, clean power close to their servers. Taiwan is pushing in the same direction: the cabinet has approved amendments requiring large energy users to install their own generation and storage, effectively writing demand for products like the Megapack into policy.

A Bigger Bet Than the Numbers Suggest

With deliveries more than a year away, the open question is how much of the 260-unit order converts into firm customer contracts. But the strategic signal is clear. As AI compute races ahead, the bottleneck is increasingly the grid, and Tesla's storage platform is positioning itself as the shock absorber that keeps the lights on and the chips humming. For Apollo, reserving a gigawatt-hour of Megapacks now is a wager that whoever controls the electrons will shape Taiwan's AI future. The deal was detailed by Teslarati.