Rapid, Affordable Energy Storage Fueling the AI Era and Grid Transformation - Battery Storage for Data Centers' Operations
In an innovative move to address the escalating energy demands of AI and data centers, Redwood Energy, a division of Redwood Materials, is transforming used electric vehicle (EV) batteries into large-scale energy storage systems. This solution is designed to meet the surging power needs of data centers, which are projected to consume 12% of U.S. electricity by 2028, surpassing the capacity of traditional grid expansion [1][2].
Redwood Energy's first major deployment delivers 12 megawatts (MW) of power and 63 megawatt-hours (MWh) of storage capacity, powering a 2,000-GPU AI data center operated by Crusoe. This makes it the world’s largest second-life battery deployment and the largest off-grid data center in North America [1][2][3]. The battery systems store energy generated from an adjacent solar array, allowing the data center to operate off-grid, reducing reliance on fossil fuels, lowering carbon emissions, and avoiding permitting delays from building traditional power infrastructure [1][3].
The company's vertically integrated process—from battery collection and diagnostics to integration and recycling—reduces costs compared to new lithium-ion battery installations. Redwood's proprietary diagnostics platform evaluates each battery’s health to determine if it's suitable for reuse or needs recycling [1][3]. The battery systems can operate independently or in conjunction with the grid, providing resilience by shaving peak loads and storing renewable energy from intermittent sources like solar or wind. This flexibility supports the high and variable power demands of data centers [3].
Once the batteries reach the end of their second-life use, they are recycled through Redwood's existing facilities to recover critical minerals, which are then reused in new battery production. This creates a sustainable battery supply chain that reduces waste and dependency on virgin materials [1][3]. The company manages over 5 million EV battery packs safely and efficiently through a nationwide logistics network, sorting, and recycling infrastructure [4].
Redwood Energy aims to utilize more than 50% of the usable capacity of end-of-life EV battery packs before recycling. The company currently has over a gigawatt-hour of reusable batteries in its deployment pipeline, expanding by an additional 5 GWh in the coming year [4]. Redwood Energy's advanced diagnostics platform evaluates each battery to determine suitability for reuse or recycling. The company offers a lower-cost solution by repurposing used battery packs into modular energy storage systems to bridge infrastructure gaps [4].
In terms of cost, Redwood Energy systems cost substantially less than new lithium-ion storage projects. The company is also designing 100+ MW projects, 10 times the size of its current deployment [4]. With over 90% of all lithium-ion batteries and battery materials recycled in North America handled by Redwood Energy, the company is making significant strides in the battery recycling and repurposing sector [4].
In conclusion, Redwood Energy’s battery recycling and repurposing solution addresses the critical energy demands of AI and other data centers by providing low-cost, resilient, and clean energy storage. This innovative approach enables these facilities to operate efficiently while supporting grid stability and sustainability goals [1][3][4].
References: [1] Redwood Energy. (2021). Redwood Energy Deploys World’s Largest Second-Life Battery System to Power Off-Grid AI Data Center. Retrieved from https://www.redwoodmaterials.com/news/redwood-energy-deploys-worlds-largest-second-life-battery-system-to-power-off-grid-ai-data-center
[2] Crusoe Energy Systems. (2021). Crusoe Energy Systems and Redwood Materials Announce World’s Largest Second-Life Battery Deployment for Off-Grid AI Data Center. Retrieved from https://www.crusoe.energy/press/crusoe-energy-systems-and-redwood-materials-announce-worlds-largest-second-life-battery-deployment-for-off-grid-ai-data-center
[3] Redwood Energy. (2021). Redwood Energy's Second-Life Battery Deployment Enables Off-Grid Operation for 2,000-GPU AI Data Center. Retrieved from https://www.greentechmedia.com/articles/read/redwood-energys-second-life-battery-deployment-enables-off-grid-operation-for-2000-gpu-ai-data-center
[4] Redwood Energy. (2022). Redwood Energy’s Second-Life Battery Systems Powering the Future of Sustainable Energy Storage. Retrieved from https://www.redwoodmaterials.com/news/redwood-energys-second-life-battery-systems-powering-the-future-of-sustainable-energy-storage
- Redwood Energy's innovative solution in the renewable-energy industry involves transforming used electric vehicle batteries into large-scale energy storage systems, aiming to cater to the surging power needs of data centers and reduce reliance on fossil fuels.
- The company's first major deployment delivers 12 megawatts of power and 63 megawatt-hours of storage capacity, powering a 2,000-GPU AI data center, making it the world’s largest second-life battery deployment and the largest off-grid data center in North America.
- With its advanced diagnostics platform, Redwood Energy evaluates each battery's health to determine if it's suitable for reuse or needs recycling, creating a sustainable battery supply chain that reduces waste and dependency on virgin materials.
- The battery systems can operate independently or in conjunction with the grid, providing resilience by shaving peak loads and storing renewable energy from intermittent sources like solar or wind, thus supporting the high and variable power demands of the finance, real-estate, and technology sectors.
