Tesla Enters the Data Center Market to Build the First of Its Kind Data Center

On August 15th, Tesla announced that it will build the “first of its kind” data center. The company is currently recruiting personnel for this project and acquiring some existing data centers.

The data center is a huge market, with a scale exceeding 250 billion USD (approximately 1.82 trillion RMB at present). Many of the world’s largest companies, although known for other products, are also involved in this field, such as Amazon AWS, Microsoft Azure, Google GCP and Meta. Now Tesla is also entering the data center business.

Tesla released a job posting for a “Senior Project Manager, Data Center” last week. In the job description, Tesla stated that they will be building the “first of its kind data center”: “This role will be responsible for end-to-end design and engineering of Tesla’s groundbreaking data center and will become a key member of the factory engineering team.

Interestingly, this new initiative emerged after Tesla took over some of Twitter’s data centers. When Elon Musk took control of Twitter, the company stopped paying many bills, including those for certain data centers. At the end of last year, Twitter ceased using a Sacramento-based data center.

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When discussing the issue of Twitter’s data centers, Musk stated that Sacramento was “possibly the worst place to establish a data center,” especially for features like Twitter Spaces, and he particularly complained about the heat there. However, just a few months ago, The Information reported that Tesla had taken over an old data center previously leased by NTT Data to Twitter. The report also mentioned that Tesla is in negotiations with Prime Data Centers to use another former Sacramento-based data center once used by Twitter.

Recently, there have been reports that Tesla has been banned from entering the Sanhe Airport in Yueyang, Hunan. The reason is that Tesla vehicles have a Sentry Mode which poses a risk of data leakage. In response to this, Tesla stated that currently, the vehicle’s data is only stored offline on USB devices inside the car and neither the owner nor Tesla can remotely access it online. Tesla also confirmed in their response that they have established a data center in China to achieve localized data storage. All data generated by vehicles sold in mainland China will be stored within Chinese territory.