Redwood Materials Launches Energy Storage Business, Partners with Crusoe for AI Data Centers
AI-summarised brief · reviewed before publication
Redwood Materials, a battery recycling company, has announced the launch of its energy storage business, Redwood Energy. The new venture aims to provide power to companies, with a primary focus on AI data centers. This move marks the next significant step for JB Straubel, the co-founder and CEO of Redwood Materials, who invested in Crusoe, an AI infrastructure company, in 2021. The Redwood Energy business is built around the thousands of retired EV batteries collected as part of the company's battery recycling operations. These batteries, which are not yet ready for recycling, store energy generated from an adjacent solar array at Redwood's facility in Sparks, Nevada. The system has a capacity of 63 MWh and generates 12 MW of power. The first partner for Redwood Energy is Crusoe, which has built a 2,000 GPU modular data center at the Sparks facility. This data center is powered by the energy storage system, making it the largest microgrid in North America. Crusoe is best known for its large-scale data center campus in Abilene, Texas, which is the initial site of the Stargate project. Redwood Materials' facility in Sparks, Nevada, houses over 805 retired EV batteries, each wrapped in white tarps, showcasing the company's massive battery collection operation. With the launch of Redwood Energy, the company is poised to play a significant role in providing sustainable energy solutions to the growing AI industry.