Posted on Aug 14, 2023
Tesla has announced its entry into the lucrative data center business, with plans to build unique data centers and snapping up some existing ones. The announcement is part of Tesla's strategy to manage its increasing need for data processing, crucial for improving neural networks for self-driving efforts, connectivity features, and operating virtual power plants and distributed energy assets.
The data center market, boasting a size of more than $250 billion, is home to some of the world's biggest companies such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), and Meta Platforms. Now Tesla aims to mark its presence in this sector.
Last week, a job posting by Tesla for a “Sr. Engineering Program Manager, Data Center” role was spotted. The posting hinted at the creation of "1st of its kind Data Centers" and promised an opportunity to lead the design and engineering of these centers, although no specific details were shared about what would make them unique.
Interestingly, this initiative comes as Tesla has been acquiring data centers from Twitter, particularly in Sacramento, a location previously criticized by Elon Musk. Reports also suggest that Tesla is in talks with Prime Data Centers to use another data center that Twitter previously utilized in Sacramento.
The expansion into the data center business is seen as a strategic move for Tesla. With its fleet of millions of vehicles equipped with cameras, Tesla's data processing needs are escalating rapidly. Furthermore, the company's growing range of connectivity features, virtual power plant operations, and services like Autobidder and Powerhub require extensive data management.
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