Musk’s Colossus Is Fully Operational With 200,000 GPUs Backed By Tesla Batteries

The first phase of Elon Musk’s ambitious xAI Memphis Supercluster has officially reached full operational power. With the completion and activation of the on-site substation, the AI facility is now fully connected to the main power grid, receiving 150 megawatts from Memphis Light, Gas, and Water (MLGW) and the Tennessee Valley Authority (TVA).

In addition to this grid connection, the facility has another 150 megawatts’ worth of Tesla Megapack batteries for backup power, ensuring continued operation during outages or periods of high demand.

The site, which houses the “Colossus” supercomputer, began making headlines in July 2024 when it launched an unprecedented 100,000 Nvidia H100 GPUs all on a single network fabric. The rapid setup, completed in just 19 days, stunned the industry. Nvidia CEO Jensen Huang noted that what xAI achieved in under three weeks would normally take four years. However, that speed came at a cost. Because grid power wasn’t yet available, xAI initially relied on natural gas generators for electricity reportedly 14 at first, each producing 2.5 MW. But some locals have observed over 35 turbines in use near the facility, raising concerns.

Now that the first substation is online and Colossus is fully running on grid power, xAI plans to decommission about half of the temporary gas generators. The remaining ones will stay in place to support the construction and upcoming activation of phase two of the Memphis Supercluster. That next phase is already underway, with a second substation expected to come online this fall, doubling the available power to 300 MW enough to supply electricity to roughly 300,000 homes.

The TVA, which draws around 60% of its energy from renewable sources like hydro, solar, wind, and nuclear, has assured stakeholders that it can support xAI’s massive energy requirements without compromising supply to the surrounding community. That assurance will be put to the test if Musk follows through on plans to scale the supercluster up to one million GPUs.

Colossus doubled its GPU count to 200,000 in February 2025, and Musk is reportedly in talks to raise funds for further expansion. If he succeeds, the Memphis site could become the world’s largest concentration of AI compute power assuming the infrastructure can keep up