AI Data Center Powered by EV Batteries Built in Nevada

Redwood Materials, co-founded by former Tesla co-founder JB Straubel, has just launched a groundbreaking project in Nevada. Its new AI data center uses repurposed electric vehicle batteries and solar energy to power computing operations—and it is the largest project of its kind in the world.

What Are EV Batteries?

EV batteries, or electric vehicle batteries, are lithium-ion batteries that power electric vehicles. When these batteries no longer meet the demanding requirements of the automotive industry—typically when their capacity falls below 80% of its original level—they still retain a significant portion of their energy storage capability. This is where the concept of a battery's "second life" comes in. Instead of being recycled immediately, these batteries are converted into stationary energy storage systems, where performance requirements are far less demanding than in a car. This allows a battery to remain in service for several more years before it truly reaches the end of its useful life.

How the Nevada Data Center Works

The new data center in Nevada is an impressive technological solution. The system has a capacity of 12 MW and can store 63 MWh of energy using repurposed EV batteries. It powers a data center equipped with 2,000 graphics processing units (GPUs), operated by Crusoe, a company specializing in AI infrastructure. The entire system works as follows: A solar array near the data center generates clean energy during the day. This energy is stored in the used EV battery system, which then continuously powers the data center. As a result, the facility can operate almost independently of the traditional power grid while minimizing its reliance on fossil fuels.

Exceptional Project Specifications

This project has achieved several significant firsts. It is the world's largest deployment of second-life batteries and, at the same time, the largest off-grid data center in North America. Redwood Materials has already collected more than 1 GWh of batteries ready for similar projects, and this figure is expected to quadruple in the near future. The company has an extensive logistics network that enables it to collect more than 70% of all used battery systems in North America. Think of it as one "large battery" made up of many smaller batteries. This allows Redwood Materials to obtain enough material to expand similar projects.

Economic and Environmental Benefits

The project offers significant benefits on several levels. From an economic perspective, using existing batteries is considerably less expensive than installing new lithium-ion systems. Redwood Materials benefits from an integrated process spanning collection through recycling, which reduces overall costs. The environmental impact is even more significant. The system completely eliminates the need for fossil fuels and offers a clean alternative to conventional energy sources for data centers. When the batteries truly reach the end of their useful life, Redwood recycles them and recovers valuable minerals for manufacturing new batteries. This creates a closed loop that minimizes waste.

Responding to AI's Growing Energy Demands

The timing of this project is no coincidence. AI data centers represent one of the fastest-growing categories of electricity consumption. It is estimated that by 2028, they could consume as much as 12% of all electricity in the United States. Redwood's model offers a scalable and sustainable solution for powering the digital infrastructure of the future. Founder JB Straubel sees enormous potential in this approach and expects future projects to be ten times larger than this initial initiative. The combination of renewable energy sources and second-life batteries could therefore provide a blueprint for future data centers around the world.