Taiwanese power company Apollo Power has signed a contract with Tesla’s Taiwan energy arm to buy 260 Megapack 2XL battery units, about 1 gigawatt-hour (GWh) of storage. The deal was signed on October 8, and Apollo disclosed it in a filing with the Taiwan stock exchange. AI data centers are a key driver, it says.
The deal
Apollo plans to use the batteries for behind-the-meter storage and resilient grid projects, which means storage installed at a customer’s own site. Deliveries come in batches starting at the end of 2027, with sites running in 2028. The price was not disclosed because of a confidentiality agreement. Apollo plans to pay through a cash capital increase and bank financing.
What is not firm
Apollo says the purchase is not revenue and does not mean it has firm orders from partners. It says it locked in the units early because the supply of large storage is tight. The deal comes with an alliance with Phison, Gigabyte and Shihlin Electric on AI data centers and grid resilience. Apollo and Tesla Energy Taiwan also installed grid-forming Megapack 2XL units at Phison’s Zhunan plant in June, and Tesla Energy Taiwan’s general manager says that project went from demo to 1 GWh in four months.
Our take: Apollo has agreed to buy the batteries, not to sell them on. Deliveries are more than a year away, and the real test is how many of the 260 units become signed customer contracts. It is a sign that AI data centers are starting to shape demand for Tesla’s energy business, which is part of what investors will ask about on October 21: Tesla Sets Its Q3 Earnings Report for October 21.
