Crusoe, Redwood Scale AI Compute with Repurposed Batteries
Event summary
- Crusoe and Redwood Materials are expanding their partnership to increase AI compute capacity by 7x.
- The expansion involves scaling from 4 to 24 Crusoe Spark modular data centers on Redwood’s Sparks, Nevada campus.
- The existing 12 MW / 63 MWh microgrid has achieved 99.2% operational availability since June 2025.
- The project utilizes repurposed electric vehicle (EV) batteries and solar power, managed by Redwood Energy’s Pack Manager technology.
The big picture
The partnership represents a significant shift towards sustainable AI infrastructure, addressing growing concerns about the energy consumption and environmental impact of large-scale AI deployments. By leveraging repurposed EV batteries, Crusoe and Redwood are demonstrating a potentially more cost-effective and environmentally responsible alternative to traditional data center power solutions. This model could become increasingly attractive as regulatory pressures and investor demand for sustainable practices intensify.
What we're watching
- Cost Dynamics
- The success of this model hinges on the continued availability of repurposed EV batteries at a cost that undercuts traditional energy sources for AI compute, and whether Redwood can maintain its competitive advantage in battery pack management.
- Scalability Limits
- While modularity enables rapid deployment, the reliance on repurposed EV batteries introduces potential supply chain constraints as EV adoption continues and the availability of 'second-life' batteries fluctuates.
- Competitive Response
- Other AI infrastructure providers will likely scrutinize this model and may attempt to replicate it, potentially intensifying competition and driving down margins for both Crusoe and Redwood.
Related topics