At the start of last year, we learned that Elon Musk’s artificial intelligence company, xAI, was building the world’s largest liquid-cooled GPU cluster to train its AI chatbot, Grok. This massive AI supercomputer initially featured 100,000 NVIDIA HGX H100 GPUs, but the company soon doubled that number to 200,000. Since then, xAI has been quietly making progress behind the scenes, and today it has shared some major details about its next-generation AI data center.

According to a post on X, xAI is preparing to power its second AI data center, Colossus 2, using 168 Tesla Megapacks, delivering gigawatt-scale clean energy. Each of these rechargeable lithium-ion batteries can store around 3,900 kWh of electricity, enough to power an entire neighborhood or match 62 Tesla Model 3 RWD cars. The Megapacks will act as a stored energy backup, ensuring uninterrupted operation of AI processors during power outages, voltage fluctuations, and periods of peak demand.

Sustainable energy shift

Before this massive energy shift, the facility relied on temporary natural gas turbines to power its GPU clusters. Now, with Tesla Megapacks in place, those turbines are being removed after being criticized for their contribution to industrial pollution. The switch to Megapacks also helps xAI reduce its reliance on natural gas and better align with Tesla's mission to accelerate the world's transition to sustainable energy.

The post described this collaboration between Tesla and xAI as “the future of power-hungry intelligence.” Colossus 2 is central to Musk's vision of achieving AGI (a primary goal not just for xAI, but also for others like DeepSeek) and integrating AI across Tesla and X. That said, this isn't the only upgrade over the original Colossus, as the company has also been well on the way to bringing the GPU count to over one million.

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Hassam Nasir

Hassam boasts over seven years of professional experience as a dedicated PC hardware reviewer and writer.