2,000-GPU data center launches powered exclusively by reusable batteries — 12-megawatt storage system built on hundreds of repurposed EV batteries
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A data center housing 2,000 GPUs is now successfully run with off-the-grid power using solar panels and repurposed batteries. According to Bloomberg, the site is powered by solar panels that generate at least 12 megawatts of power and backed up by reused EV batteries with up to 63 megawatt-hours of capacity. This should be sufficient power for approximately 10,000 average U.S. homes, with the batteries providing power for over five hours. 2,000 GPUs have an estimated power draw of about four megawatts, so the on-site battery capacity should be enough for around 15 hours.
The company behind this project is Redwood Materials, which was founded by JB Straubel, one of the people behind Tesla. Redwood's main business is battery recycling, and it has been focusing on getting battery materials from old EV modules that are no longer useful for transportation and have since been disposed of. But even though these batteries have already reached their end-of-life, Redwood discovered that they still retain about 50% of their capacity. This meant that they can be reused for other purposes that do not require high performance, such as driving an electric car.
'Think of this almost like a retirement home for these batteries,' said Redwood Materials Chief Commercial Officer Cal Lankton. These reused batteries are much cheaper than buying new ones while simultaneously delivering the same performance. So, aside from reducing the burden of disposing of old batteries, it also allows businesses to save on capital expenditure when setting up a backup power supply.
Crusoe Energy operates the data center that Redwood is powering with its reused EV batteries. The former is part of the $500-billion OpenAI Stargate project, although it's unclear if the Nevada site is part of that initiative. Lankton says that they expect to deploy more similar systems for the remainder of 2025, with 5 GWh capacity slated to go live next year. Redwood also claims that it's working on 100 MW projects — a crucial development for power-hungry data centers that require stable and consistent power.
The exponential growth of data centers is putting a strain on our current electricity supply. Many tech companies are investing in small modular reactors to control their own power, but it will still take years before this technology starts to go online. While already available renewable energy like wind and solar is ideal, they're oftentimes unreliable due to changing conditions, forcing data centers to rely on fossil fuel sources. So, solutions like this help ensure that these tech companies will get the kind of clean power they need without putting a strain on the local electric grid.
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