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Data centers are breaking the electric grid. Meet the $6 billion startup and its visionary CEO solving the problem

Fast Company Tech Adele Peters May 4, 2026
Data centers are breaking the electric grid. Meet the $6 billion startup and its visionary CEO solving the problem
AI Summary— plain English for professionals

# AI Data Centers Are Guzzling Electricity—Here's One Creative Fix Data centers powering AI are straining power grids and driving up electricity costs, but one startup called Redwood Materials found an unlikely solution: using old electric car batteries as backup power sources. By combining recycled EV batteries with solar panels, they built a data center in Nevada that doesn't drain the grid, offering a way to power AI's massive energy demands without forcing neighbors' electric bills higher or building new power plants. It's a reminder that sometimes the answer to AI's growing resource problem isn't building something new, but finding smarter ways to use what we've already made.

In the rolling hills near Reno, Nevada, in a field filled with solar panels, something unexpected is nestled into the landscape: a data center that isn’t blowing up its neighbors’ electric bills. In fact, the modular data center, built by Crusoe, essentially doesn’t rely on the electric grid at all.

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