Tesla co-founder JB Straubel is using old EV batteries to power AI data centers

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🗞️ Driving the news: JB Straubel, Tesla co-founder and CEO of Redwood Materials, is repurposing used EV batteries to power AI data centers, addressing two pressing sustainability challenges: battery waste and the soaring energy demands of artificial intelligence
• Partnering with Crusoe Energy, Redwood's first microgrid project in Abilene, Texas, delivers 12 MW of power and 63 MWh of storage using second-life EV batteries, forming part of the $500 billion Stargate AI infrastructure initiative backed by OpenAI, Oracle, and SoftBank

🔭 The context: AI is driving a massive expansion in data center infrastructure, with Goldman Sachs projecting a 165% increase in data center power demand by 2030
• At the same time, EV adoption is creating a growing stream of used batteries, many of which still retain usable storage capacity
• Redwood Materials, initially focused on battery recycling, is now evolving into an energy storage player — aiming to close the loop and extend battery life before recycling

🌍 Why it matters for the planet: Second-life battery applications reduce resource extraction, lower lifecycle emissions, and make battery production more circular
• Repurposing EV batteries for stationary energy storage supports round-the-clock renewable power, a critical step for decarbonizing data centers — some of the world’s fastest-growing energy consumers
• The model offers a scalable blueprint for reusing materials that would otherwise become e-waste

⏭️ What's next: Redwood holds over 1 GWh of repurposed battery capacity — equivalent to 12,500 EVs — and is designing energy projects 10 times larger than its current pilot
• The company is entering the utility-scale energy storage market alongside incumbents like Tesla’s Megapack, with a focus on modular, cost-effective systems for fast-growing AI infrastructure
• Market analysts expect second-life battery projects to become increasingly relevant for decentralized and microgrid applications where budget constraints meet high energy needs

💬 One quote: “We’re just finding a way to basically wring a little bit more value out of those batteries.” – JB Straubel, CEO of Redwood Materials

📈 One stat: AI is projected to drive a 165% increase in global data center power demand by 2030, according to Goldman Sachs

See on illuminem's Data Hub™ the sustainability performance of Tesla and its peers CATL, and Schneider Electric

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