Recycled EV Batteries Powering AI Data Centers: A Sustainable Shift
Crusoe data centers in Nevada are utilizing recycled EV batteries for a sustainable energy solution amidst rising electricity demands for AI.
Key Points
- • Crusoe data centers in Nevada use recycled EV batteries for power.
- • U.S. data centers may consume up to 12% of national electricity by 2028.
- • Redwood Materials recovers significant battery capacity, supporting sustainability.
- • The initiative is scalable and a viable alternative to gas-fired power plants.
In a groundbreaking initiative, two data centers operated by the artificial intelligence (AI) cloud platform Crusoe in Reno, Nevada, are harnessing the potential of used electric vehicle (EV) batteries combined with renewable energy. This effort is driven by an urgent need within the AI industry for reliable power sources as the demand for electricity from U.S. data centers is projected to soar to 12% of the nation's total by 2028, according to a Department of Energy study.
The batteries powering Crusoe's data centers are sourced from Redwood Materials, a leading firm in battery recycling, which successfully recovered over 20 gigawatt hours of lithium-ion batteries in 2024 alone—sufficient to power 250,000 new EVs. This innovative approach not only offers a renewable alternative to traditional gas-fired plants but also positions itself as an environmentally friendly solution amid growing energy demands. In an era where several developers plan to construct over 100 new gas-fired plants in Texas to support server operations, Crusoe's model stands out by leveraging recycled resources.
Cully Cavness, co-founder and COO of Crusoe, points out the urgency for dependable electricity sources, stating that the traditional options, predominantly gas, may not align with sustainable practices. The batteries utilized by Crusoe, although slightly degraded—losing about 20% of their capacity—remain effective for grid use. Colin Campbell, CTO of Redwood Materials, emphasized that such batteries, if employed correctly, can play a crucial role in energy storage solutions.
The partnership between General Motors and Redwood Materials aims to ensure a steady supply of recycled batteries for energy storage. JB Straubel, founder of Redwood Materials and former Tesla CTO, expressed his optimism regarding the scalability of this model, saying, 'There's no practical limit that we see on how we can scale this.' The design of the entire system is intentionally straightforward and robust, with aspirations for significant expansion if the current deployment proves successful.