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The AI computing boom is driving enormous demand for electricity and infrastructure. Domestic green energy company Apollo Power (7911) issued two major announcements, unveiling a strategic alliance with Tesla Taiwan, Gigabyte Technology (2376), Phison Electronics (8299), and Shihlin Electric (1503) to collaborate on “AIDC and Corporate Grid Resilience.” Apollo Power also boldly signed orders for a total of 260 Tesla Megapack 2XL large-scale energy storage systems, with a combined capacity of up to 1 GWh, targeting the huge opportunities ahead in AI data centers and behind-the-meter energy storage for businesses.
Joining Forces to Deliver an End-to-End Computing and Power Solution
As technology companies face the twin challenges of power shortages and limited computing capacity in the AI era, Apollo Power has assembled a cross-industry alliance of leading companies in green energy, heavy electrical equipment, AI servers, and semiconductor storage. The goal is to provide a one-stop solution spanning infrastructure and hardware.
Industry analysts say the alliance’s strategic roles are clearly defined:
Apollo Power: Serves as the project hub, coordinating green power supply, energy management systems (EMS), and overall project planning.
Tesla Taiwan: Provides world-class Megapack energy storage systems, offering data centers a vital backstop for peak shaving, load balancing, and uninterrupted power supply.
Gigabyte Technology: Contributes AI servers, liquid-cooling technology, and powerful computing infrastructure.
Phison Electronics: Provides critical high-speed, high-capacity data storage solutions for AI computing.
Shihlin Electric: Supplies and installs essential heavy-duty power equipment for a resilient grid, including transformers and switchgear.
Notably, Shihlin Electric and Gigabyte subsidiary Jiyu Investment are already shareholders of Apollo Power. This shows that the alliance is not merely a business collaboration, but also a deep pooling of resources among shareholders, demonstrating a strong ambition to capture opportunities in AI and green energy infrastructure.
Signs Purchase Agreement for 260 Tesla Megapack 2XL Units
To support this large-scale AIDC energy integration project, Apollo Power has signed a purchase agreement with Tesla Taiwan for 260 Megapack 2XL units. The scale is rare for a single company’s behind-the-meter (BTM) energy storage project in Taiwan.
Apollo Power said that, due to a confidentiality agreement between the parties, the actual transaction amount will be calculated based on fulfillment of the agreement and the agreed pricing mechanism, and will not be disclosed for now. The energy storage equipment is expected to be delivered in batches starting in late 2027 (Year 116 of the Republic of China calendar), with the site planned to commence operations in 2028 (Year 117). The actual timeline will depend on equipment deliveries, customer project progress, and Taipower’s grid interconnection acceptance process.
Regarding financing, Apollo Power said that given the large scale of the procurement, it will combine a cash capital increase with bank financing to ensure adequate funding for the project.
Expansion into AIDC Energy Integration Offers Long-Term Revenue Potential
Apollo Power emphasized that the equipment being purchased will not generate direct revenue for the company, and that launching the collaboration does not mean that any participating party has secured a confirmed order. Actual revenue and earnings contributions will depend on individual customer project contracts and applicable revenue recognition requirements.
Market participants noted that Apollo Power’s strategy of “first securing 1 GWh of energy storage capacity, then advancing the strategic alliance” suggests that the alliance may already be in discussions with prospective large enterprises or international cloud service providers (CSPs). This landmark cross-industry collaboration marks Apollo Power’s transformation from a pure-play green power and energy storage developer into an “AI data center energy integration service provider.” As projects come to fruition from 2027 to 2028, the market has high expectations for future revenue and profit growth.
This article, “Apollo Power Goes Big on 1 GWh of Tesla Energy Storage! Joins Forces with Gigabyte, Phison, and Shihlin Electric to Form AI Power Alliance,” originally appeared on .
【Additional Analysis】
【My Further Perspective】
The key bottleneck in the race to build AI computing capacity is gradually shifting from a “chip shortage” to a “power shortage.” Apollo Power’s move is more than a simple equipment purchase; it represents a new integrated export model for Taiwan’s technology and heavy electrical equipment supply chains, combining “computing power + heavy electrical equipment + energy storage + data storage.” Faced with stringent requirements from international cloud giants (CSPs) for green power and grid resilience, integrated solutions combining behind-the-meter (BTM) storage with AI servers and grid equipment can effectively reduce the risk of outages caused by the sudden, heavy loads of high-performance computing centers. In the long run, this could help related companies transition from “hardware manufacturers” to higher-value-added “infrastructure integration service providers.”
【Market Impact】
- **Taiwan stock market**:
- **Shihlin Electric (1503)**: Bullish. As both a shareholder and a grid equipment supplier, it stands to benefit directly from strong demand for transformers and switchgear.
- **Gigabyte (2376), Phison (8299)**: Neutral to bullish. The alliance helps both companies secure an avenue into overseas markets for AI servers, liquid cooling, and high-speed storage, deepening business opportunities tied to green energy infrastructure.
- **Apollo Power (7911)**: Bullish in the long term, but neutral in the short term. Its transformation into an AIDC integrator offers considerable potential, but the site is not expected to begin operations until 2028, so short-term pressure from potential cash capital increases and share dilution remains.
- **U.S. equities (Tesla, TSLA)**: Neutral to bullish. The order for up to 1 GWh of Megapacks provides further evidence of the rapid expansion of Tesla’s Energy Storage business. Behind-the-meter commercial and industrial energy storage is becoming a key growth engine for Tesla alongside electric vehicles.
- **Cryptocurrency market**: Neutral. While this project focuses on AI data centers, if large-scale behind-the-meter storage and microgrid models mature, they could offer a blueprint for energy-intensive crypto mining companies seeking to manage energy regulation and electricity price volatility.
【What to Watch Next】
Key developments to monitor include whether the alliance secures major international CSP or semiconductor customers for AIDC power supply contracts in 2025–2026, as well as the progress of grid interconnection reviews in Taiwan and whether Tesla Megapack deliveries remain on schedule.
【Risk Reminder】
Equipment delivery and commercial operations are three to four years away (2027–2028), making it difficult for the project to have a material impact on near-term EPS. The large cash capital increase could put pressure on Apollo Power’s share price. Any subsequent delays in grid interconnection or disruptions to the international lithium battery supply chain could increase costs or delay the project’s launch.