Tesla signs historic $5 billion Megapack deal across UK and Italy

tesla megapack

Tesla is expanding its energy footprint across Europe. The company has secured a deal with NatPower to supply more than 25 GWh of battery energy storage in the UK and Italy. This will be the first phase of the project, which will eventually expand to 100 GWh and cost more than $5 billion.

According to NatPower, the collaboration will strengthen the continent’s electrical infrastructure by boosting industrial capacity through advanced energy trading platforms.

What Tesla brings to the table includes its high-energy-density Megapack batteries. The company will also use its expertise in engineering, procurement, and construction (EPC) to see the project through. However, one of the most significant Tesla contributions is its Autobidder platform, which NatPower will rely on for long-term revenue generation.

As stated by NatPower, the contract will play an important part in its energy transition roadmap, which will be powered by artificial intelligence (AI). It will also solidify NatPower’s leading position in the European electricity landscape.

The project, however, will eventually expand to more than 100 GWh. NatPower and Tesla will kick off with five sites in the UK and Italy, and power industrial clients, including data centers and other energy-intensive consumers.

NatPower is also touting a unique framework that will combine the various aspects of the energy project into a single contract across multiple markets. It claims the blueprint can be adopted as a template for future large projects.

Tesla has been involved in large energy projects. The Glenbrook Ohurua Battery 1 project, which uses 56 Megapack 2XL units in New Zealand, can power 44,000 homes and came online in May 2026. Tesla will also deploy 189 Megapack 3s in the 700 MWh energy storage project in Belgium.

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