Taiwan Power Firm Orders 1 GWh of Tesla Megapacks for AI Data Centers

Apollo Power, a Taiwanese energy company, has signed a contract with Tesla’s Taiwan energy arm for 260 Megapack 2XL units, totaling approximately 1 GWh of battery storage. The move signals a strategic bet that energy infrastructure, rather than just compute hardware, will dictate the pace of AI data center expansion in the region.

What Happened

According to a filing with the Taiwan stock exchange, Apollo Power finalized the purchase on October 8. The units are designated for behind-the-meter storage and grid resilience projects, with deliveries scheduled in batches beginning at the end of 2027 and sites expected to become operational in 2028. Neither Apollo nor Tesla disclosed the price of the equipment, citing a confidentiality agreement. Apollo plans to fund the purchase through a cash capital increase and bank financing. The company explicitly noted that this purchase is not revenue and does not constitute firm orders from its downstream partners.

Why It Matters

This order highlights the growing tension between AI demand and power availability. Apollo’s chairman told local media that global large-scale storage supply is tight, prompting the company to secure units early. Reports indicate that only about 33 units are currently under signed customer contracts, with roughly 150 more in negotiation, suggesting Apollo is reserving capacity ahead of confirmed demand. The deal is supported by a recent pilot at Phison’s Zhunan plant, where grid-forming Megapacks were installed in June. Tesla Energy Taiwan General Manager Sun Hsiao-Han stated the project moved from demo to 1 GWh in four months, adding that Tesla Energy has deployed more than 50 GWh worldwide. Additionally, Taiwan’s cabinet has approved amendments requiring large energy users to install their own generation and storage, providing a regulatory tailwind for such enterprise storage projects.

The Bottom Line

With deliveries more than a year away, the success of this 1 GWh reservation hinges on how many of the 260 units convert into signed customer contracts before the 2028 operational deadline.