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Tesla signs lease for Sacramento data center vacated by Twitter

Elon Musk’s electric car company has taken over space at an NTT Global Data Centers facility in Sacramento that was previously used by Elon Musk’s social media company.

Twitter left the data center in late 2022 when its lease expired, with the CEO criticizing the area, but Tesla will now take over the space as well as additional square footage, The Information reports.

Tesla is believed to be planning to use the data center for machine learning workloads, including self-driving car simulations.

The company is also reportedly mulling taking over the lease of another Twitter data center in Sacramento. Twitter no longer uses the Prime Data Centers facility, also leaving in late 2022, but its lease has not expired – so it needs to find another tenant to take over the contract.

Tesla’s interest in the two sites comes despite Musk calling Sacramento “possibly the worst place to have a data center” in a December Twitter Space. DCD understands that the Prime facility is the site that collapsed in September amid a heat wave.

Since his acquisition of Twitter for $44 billion last year, Musk has drastically cut costs at the company to help pay off the debt the deal added to the company’s balance sheet.

In addition to cutting the Sacramento data center, and plans to reduce capacity at Twitter’s Atlanta site, Musk has laid off more than half the company’s workforce and refused to pay landlords or contractors.

The company initially refused to pay Amazon Web Services, but relented after Amazon threatened to stop paying for advertising on the platform. It is currently not paying its Google Cloud bill, and plans to stop using the service later this summer.

Twitter’s refusal to pay for cloud database provider Redis is believed to be the reason for the messy launch of Ron DeSantis’ presidential bid on a Twitter Space, The Information reported last week.

Asset manager Fidelity, which owns a minority stake, last month said that Twitter was now worth only $15 billion. Data Center Dynamics

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