Apollo Power Orders 260 Tesla Megapacks as Taiwan Braces for AI Power Crunch

Apollo Power, a Taiwanese energy company, has placed an order for 260 Tesla Megapack 2XL units — roughly 1GWh of battery storage — according to a filing with the Taiwan Stock Exchange. The contract was signed with Tesla’s Taiwan energy division on October 8, signaling a bet that electricity supply, not semiconductor availability, will determine how quickly AI data centers can be brought online in the region.

The Megapacks are intended for behind-the-meter storage and grid resilience projects, with batch deliveries scheduled to begin at the end of 2027 and full site operations targeted for 2028. Neither Apollo nor Tesla disclosed financial terms, citing a confidentiality agreement. Apollo said it will fund the purchase through a cash capital increase combined with bank financing, and the company was careful to note that the order does not represent revenue and does not mean it has secured firm customer contracts for the equipment.

That last point matters. Reporting from Biggo indicates that only about 33 of the units are currently covered by signed customer agreements, with approximately 150 more still in negotiation. The same report placed total project investment near NT$130 billion, though that figure includes installation work, with the equipment itself accounting for roughly 40 to 50 percent of the total. In practice, a significant portion of this order amounts to Apollo reserving supply ahead of confirmed demand — a defensive move rather than a reflection of locked-in business.

Apollo’s chairman told local media that global large-scale storage supply remains tight, which is why the company moved early to secure the units. The company also launched an AI data center and grid resilience alliance alongside Phison, Gigabyte, and Shihlin Electric. That initiative builds on a pilot project at Phison’s Zhunan plant, where Apollo and Tesla Energy Taiwan installed grid-forming Megapack 2XLs in June. Tesla Energy Taiwan general manager Sun Hsiao-Han said the project scaled from demonstration to 1GWh in four months, and noted that Tesla Energy has deployed more than 50GWh of storage worldwide.

The timing also benefits from a regulatory tailwind. Taiwan’s cabinet has approved amendments that would require large energy consumers to install their own generation and storage capacity, effectively mandating enterprise-scale battery deployments. The order fits a broader pattern in Tesla’s energy business, where Megablock systems are pitched at data center builders who need roughly 1GWh commissioned within 20 business days. Megapacks already support xAI’s Colossus facility in Memphis and a 400MW AI campus in Brazil, and the Megapack 2XL was among the first products named in Nvidia’s DSX Ready qualification for battery storage in AI factories. With deliveries more than a year out, the real test will be how much of the 260-unit order converts into signed customer contracts.