Taiwan Power Firm Orders 260 Tesla Megapacks for AI Data Center Projects

Apollo Power has signed a contract with Tesla’s Taiwan energy arm to purchase 260 Tesla Megapack 2XL units, representing approximately 1GWh of energy storage capacity. The agreement, filed with the Taiwan stock exchange on October 8, signals a strategic move by the power firm to secure storage assets ahead of anticipated demand from artificial intelligence data centers.

What Happened

The 260-unit order is designated for behind-the-meter storage and resilient grid projects. According to the filing, deliveries will occur in batches starting at the end of 2027, with sites scheduled to become operational in 2028. Neither Apollo nor Tesla disclosed the price of the transaction, citing a confidentiality agreement. Apollo intends to fund the purchase through a combination of cash capital increase and bank financing. The company explicitly noted that this purchase does not constitute revenue and does not imply firm orders from its partners. Reports from Biggo indicate that only about 33 units are currently covered by signed customer contracts, while roughly 150 more are in negotiation. The total project investment is estimated near NT$130 billion, though this figure includes installation work, with equipment accounting for approximately 40 to 50 percent of the cost.

Why It Matters

This transaction highlights the growing intersection between energy storage and the expansion of AI infrastructure. Apollo’s chairman stated to local media that global supply for large-scale storage is tight, prompting the company to lock in units early. This move aligns with regulatory changes in Taiwan, where the cabinet has approved amendments requiring large energy users to install their own generation and storage, creating a tailwind for enterprise storage solutions. Apollo recently launched an AI data center and grid resilience alliance with Phison, Gigabyte, and Shihlin Electric. The alliance builds on a pilot at Phison’s Zhunan plant, where grid-forming Megapack 2XLs were installed in June. Tesla Energy Taiwan General Manager Sun Hsiao-Han noted that the project expanded from a demo to 1GWh in four months and that Tesla Energy has deployed more than 50GWh worldwide. The deal also fits a broader pattern of Tesla targeting the data center market, with its Megablock solution aiming for 1GWh commissioned in 20 business days and Megapacks already supporting facilities such as xAI’s Colossus in Memphis.

The Bottom Line

With deliveries more than a year away, the critical factor will be whether Apollo can convert its reserved supply into signed customer contracts. The order serves as a significant bet on the necessity of stable power infrastructure for AI growth, leveraging Tesla’s storage technology to meet emerging regulatory and market demands in Taiwan.