Taiwan's Apollo Power orders 260 Tesla Megapacks, about 1 GWh, as AI data centers hunt for power

Tesla has landed one of its largest storage orders in Asia outside China. Taiwanese green energy company Apollo Power signed a contract on October 8 to buy 260 Megapack 2XL units from Tesla's Taiwan subsidiary, for roughly 1 GWh of storage. The company disclosed the deal in a filing with the Taiwan Stock Exchange on October 11.

The key facts

• Size: 260 Megapack 2XL units, about 1 GWh in total. That matches Tesla's own specification of 3.85 MWh per Megapack 2XL.
• Use: storage behind the customer's meter for businesses, plus projects that make the local grid more resilient.
• Customers: Taiwanese manufacturers, medical institutions, science parks and AI data centers, according to Taiwanese tech site TechNews.
• Timing: deliveries in batches through the end of 2027, with sites expected to start operating in 2028.
• Price: not disclosed. Apollo Power says the two sides signed a confidentiality agreement and that Tesla asked for the amount to stay private.
• Funding: a cash capital increase and bank loans.

Apollo Power added the usual caveats: the schedule depends on deliveries, customer projects, construction, grid connections and acceptance tests. It also stressed that the purchase does not count as revenue, and that its partners have not committed to firm orders.

An alliance around AI power

On the same day, Apollo Power announced a strategic alliance with Tesla's Taiwan arm and three well-known Taiwanese tech companies: motherboard and server maker Gigabyte, memory controller specialist Phison and electrical equipment maker Shihlin Electric. The group calls it a cooperation on AI data centers and resilient enterprise grids.

Apollo's chairman, Wang Hui-min, argued that power, not computing, is often the real bottleneck when AI facilities go live. Companies need to be "Power Ready", not only ready with chips, he said. Apollo wants to sell a package that combines green electricity contracts, Tesla storage, backup power, microgrids and energy management software.

TechNews reported that most of the 1 GWh was already spoken for by Taiwanese supply chain customers before the contract was signed, and that Phison's founder has asked Tesla for another 2 GWh. Phison's site has already tested the system. Those details come from the Taiwanese report and have not been confirmed by Tesla.

Why AI data centers want Megapacks

AI training clusters can swing their power use sharply within seconds, which strains local grids. Megapack uses so-called grid-forming control, which lets the battery respond within milliseconds and help stabilise voltage and frequency. Batteries can also provide backup and store cheaper electricity for later.

The timing fits a wider trend. In September, Nvidia launched DSX Ready, a qualification program for power and cooling equipment for AI data centers. Tesla's Megapack 2XL was one of only three battery systems qualified in the first round, alongside products from Hitachi Energy and LG Energy Solution.

Why it matters for Tesla

Taiwan is home to much of the world's chip and server supply chain, and its power grid is under pressure as AI demand grows. Winning a 1 GWh order there gives Tesla a foothold with exactly the kind of customer that is driving storage demand worldwide. It also shows that data center demand for Megapacks is not limited to the US.

For context, 1 GWh is a meaningful but not huge order: Tesla has recently deployed more than 10 GWh of storage per quarter. The value lies more in the customer base it opens up.

What to watch next

• Whether the extra 2 GWh mentioned by Phison turns into a signed order.
• How quickly Tesla can ship, given strong demand and limited factory output.
• Further Megapack deals linked to Nvidia's DSX Ready program.