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AI Data Centre Powered by Renewables and Used BEV Batteries

Synergistic pairing of renewable energy with used BEV batteries to power AI data centre standalone microgrid.

SL Staff C

• 2 min read
Aerial photo of parking lot-sized array of white battery modules adjacent to a photovoltaic array and large building
Image courtesy of Redwood Energy
One of the common criticisms of, or at least questions about, battery-electric vehicles (BEVs) is what happens to all their traction batteries when they reach the end of their useful life?

One answer is to dismantle them to recover the lithium, cobalt, nickel, and other valuable materials. There are companies who do just that.

One of those companies has found an additional answer.

Redwood Energy is re-purposing recovered BEV traction batteries to store renewable energy for use in powering data centres.

Their first independent microgrid, for the AI cloud company Crusoe, is nearing completion in Reno, Nevada.1 The facility can store 63 MWh (megawatt hours) of energy (roughly equivalent to what 1,000 average BEVs can store), and can output 12 MW (megawatts) of power at peak, which gives it a run time about 5 1/4 hours at full capacity.

BEV battery operation requires short bursts of high-discharge current, and the batteries also undergo frequent recharging, often at high input current. This is hard on the batteries. The batteries are usually considered to have reached the end of their BEV application life when they have dropped below about 80% of their original rated capacity. However, they still have plenty of life remaining if they are not subject to such severe discharge and charging requirements.

Data centres need near constant electricity supply, and the demand for data centres is increasing rapidly, in part due to the rapid growth in AI.

Used BEV batteries, coupled with renewable energy, are a good fit for data centres.

They can store peak renewable solar or wind energy when it is generated (moderate input current) for near-constant lower discharge use.

What is most interesting about this development is that the business case is driven primarily by the low cost and speed of deployment of the microgrid. Since it is standalone, it does not need to wait for lengthy utility permitting approvals, only construction permits. The environmental benefits of renewable energy and extended life for the batteries are a definite additional synergistic bonus.

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Sweet Lightning has no affiliation with any products or manufacturers mentioned in this article.

Reading

  1. “Redwood Energy: Fast, Low-Cost Storage to Power the Age of AI and a Changing Grid,” June 27, 2025. https://www.redwoodmaterials.com/news/redwood-energy-fast-low-cost-storage-to-power-the-age-of-ai-and-a-changing-grid/.

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