- Taiwan Power Company orders 260 Tesla Megapack 2XL units to meet AI data center demand.
- The purchase will be used for grid stability projects, expected to enter operation in 2028.
- Global utility-scale storage supply is tight; Apollo locked in units early to meet demand.
- Taiwan's Cabinet has required large energy users to install their own generation and storage facilities.
A Taiwan power company has ordered 260 Tesla Megapack 2XL units, totaling roughly 1 GWh of storage, underscoring that power — not chips — will dictate the pace at which AI data centers come online. Apollo Power signed a contract with Tesla's energy division in Taiwan on Oct. 8, and according to the company's filing with the Taiwan Stock Exchange, the units will be used for behind-the-meter storage and grid-stabilization projects. Delivery will occur in batches, slated to begin in late 2027 and enter operation in 2028.
Apollo and Tesla did not disclose pricing, citing a nondisclosure agreement. Apollo plans to fund the purchase through a cash capital increase and bank financing, and noted that the purchase will not generate revenue nor does it represent a firm order backlog from partners.
Global energy storage supply tight
The report notes that only about 33 units are currently covered by signed customer contracts, with another roughly 150 still under negotiation. The report also states that total project investment approaches NT$13 billion, though that figure includes installation work, while the equipment itself accounts for only about 40% to 50%. In other words, a substantial portion of this order represents Apollo pre-positioning supply for anticipated demand. Apollo's chairman told local media that global utility-scale storage supply is tight, which is why the company moved early to lock in the units, according to Yahoo Taiwan Finance.
Apollo has also formed an AI data center and grid resilience alliance with Phison, Gigabyte, and Shihlin Electric. The initiative builds on a pilot at Phison's Zhunan factory, where Apollo and Tesla Energy Taiwan installed a Megapack 2XL as a grid-forming device in June. Tesla Energy Taiwan General Manager Sunny Sun said the project progressed from demonstration to 1 GWh in just four months, and that Tesla Energy has deployed more than 50 GWh of storage globally.
Taiwan policy backs corporate storage
Taiwan's Cabinet has approved revisions requiring large energy users to install their own generation and storage facilities, providing a regulatory tailwind for corporate storage. The deal fits a pattern Teslarati has been tracking. Tesla's Megablock program aims to deliver 1 GWh within 20 business days to rapidly meet data center demand. Megapacks already support xAI's Colossus in Memphis and a 400 MW AI campus in Brazil. According to reports, the Megapack 2XL is among the first battery storage products listed under Nvidia's DSX Ready certification for AI factories.
Delivery is still more than a year away, so the real test will be how many of these 260 units convert into signed customer contracts.
The importance of Tesla Megapack for AI data centers
As AI technology advances rapidly, demand for electricity is rising sharply, particularly for data center operations. The collaboration between Taiwan Power Company and Tesla highlights the importance enterprises place on storage solutions, especially against a backdrop of tight global storage supply. Taiwan's Cabinet policy changes also provide a favorable regulatory environment for corporate storage, which will further drive adoption and development of storage technology. Deployment of Tesla Megapacks not only enhances grid stability but also offers enterprises more flexible energy management options — critical for future data center operations.