- Updated: February 19, 2026
- 6 min read
Redwood Materials Accelerates Energy‑Storage Business to Power AI Data Centers
Redwood Materials is rapidly scaling its energy‑storage division, fueled by a $425 million Series E round and exploding demand from AI data‑center operators seeking reliable, sustainable power.
Redwood Materials: From Battery Recycling to Energy Storage Pioneer
Founded in 2017 by former Tesla CTO JB Straubel, Redwood Materials began as a circular‑economy startup focused on reclaiming valuable metals from end‑of‑life lithium‑ion batteries. By turning scrap into high‑purity cathode material, the company created a closed‑loop supply chain that supplies major OEMs such as Panasonic and LG Energy Solution.
Over the past few years, Redwood expanded beyond raw material recovery into energy‑storage systems built from second‑life EV batteries. These systems repurpose cells that are no longer optimal for vehicle use but still retain significant capacity for stationary applications. The result is a cost‑effective, low‑carbon alternative to traditional lithium‑ion packs.
For organizations looking to power AI workloads while meeting sustainability goals, Redwood’s recycled‑battery solutions offer a compelling proposition: high energy density, rapid deployment, and a dramatically reduced carbon footprint compared with newly manufactured packs.
Series E Funding: $425 Million Backed by Tech Titans
In February 2026 Redwood announced a $425 million Series E financing round. The round attracted new capital from Google and reinforced participation from existing backer Nvidia, alongside other strategic investors.
The capital will be allocated to three core pillars:
- Scaling production of second‑life battery modules for megawatt‑scale storage.
- Accelerating R&D on power‑electronics integration and AI‑driven energy‑management software.
- Expanding global deployment teams to serve hyperscale data‑center customers.
According to Redwood’s CFO, the infusion “positions us to meet the next wave of grid‑constrained AI data‑center builds while keeping carbon emissions in check.”
San Francisco R&D Lab Grows Four‑Fold
Redwood’s San Francisco research hub, launched in April 2025, has now expanded to a 55,000‑square‑foot facility employing nearly 100 engineers, software developers, and power‑electronics specialists. This growth mirrors the company’s ambition to become the go‑to supplier for “green” AI data‑center power.
The lab focuses on three intersecting domains:
- Hardware integration: Designing modular battery packs that can be stacked to deliver multi‑gigawatt‑hour capacities.
- Software orchestration: Building AI‑driven energy‑management platforms that predict load spikes and optimize charge‑discharge cycles.
- Power electronics: Developing high‑efficiency inverters and DC‑DC converters tailored for data‑center rack integration.
Recent deployments include a 12 MW/63 MWh system for Crusoe’s modular data‑center in Texas and a pilot 30 MW installation for a leading hyperscaler in the Pacific Northwest. Both projects demonstrate how Redwood’s solutions can shave up to 20 % off electricity costs while delivering 99.9 % uptime.
How Redwood’s Storage Tackles Grid Constraints for AI Workloads
AI training clusters consume massive, unpredictable power bursts that strain traditional grids. Redwood’s storage platform addresses three critical challenges:
| Challenge | Redwood Solution |
|---|---|
| Grid capacity delays (5+ years for new connections) | On‑site battery farms provide instant power, reducing reliance on external grid upgrades. |
| Peak‑load cost spikes | AI‑driven forecasting shifts load to off‑peak periods, storing cheap electricity for high‑intensity training runs. |
| Carbon intensity of grid electricity | Second‑life batteries paired with renewable‑energy contracts enable near‑zero‑emission operation. |
By integrating Redwood’s storage directly into the data‑center’s power architecture, operators can achieve:
- Reduced capital expenditures on new substations.
- Improved resiliency against grid outages.
- Compliance with corporate ESG targets.
Industry Perspectives: Quotes and Analysis
“AI data centers have definitely been a pressing area of focus,” said Claire McConnell, Vice President of Business Development at Redwood Materials. “When developers try to connect to the grid, they’re told it could take five‑plus years. Our storage lets them bypass that bottleneck and stay competitive in the AI race.”
Analyst Ravi Patel of GreenTech Insights added, “Redwood’s approach of repurposing EV batteries is a game‑changer. It simultaneously solves waste‑management issues and provides a scalable, low‑cost power source for the AI boom.”
Broader Impact on Sustainable Technology
Redwood’s momentum signals a shift in how the tech industry addresses the twin challenges of exponential AI compute demand and climate responsibility. Key implications include:
- Circular economy acceleration: Second‑life battery markets will expand, creating new revenue streams for EV manufacturers.
- Policy alignment: Governments incentivizing renewable‑energy storage can leverage Redwood’s model to meet regional clean‑energy targets.
- Competitive advantage for early adopters: Data‑center operators that integrate recycled‑battery storage can differentiate themselves to ESG‑focused customers.
As AI workloads continue to dominate compute budgets, the synergy between high‑performance computing and sustainable power will become a decisive factor in market leadership.
Explore How UBOS Can Accelerate Your AI‑Powered Energy Projects
If you’re a data‑center operator or sustainability manager looking to replicate Redwood’s success, UBOS offers a suite of tools to streamline AI‑driven energy solutions:
- Start with the UBOS homepage to understand our mission and platform capabilities.
- Review the UBOS platform overview for building custom AI‑enabled workflows.
- Leverage the AI marketing agents to promote your green‑energy initiatives.
- For startups, the UBOS for startups program provides rapid prototyping and go‑to‑market support.
- SMBs can benefit from UBOS solutions for SMBs, which include pre‑built templates for energy‑monitoring dashboards.
- Enterprises seeking a full‑scale deployment can explore the Enterprise AI platform by UBOS.
- Design custom interfaces with the Web app editor on UBOS and automate processes using the Workflow automation studio.
- Check out our UBOS pricing plans to find a cost‑effective tier for your project.
- Get inspiration from real‑world case studies in the UBOS portfolio examples.
- Kick‑start development with ready‑made solutions from the UBOS templates for quick start, such as the AI SEO Analyzer or the AI Article Copywriter.
- For advanced AI video generation, explore the AI Video Generator template.
By integrating UBOS’s low‑code AI platform with Redwood‑style energy storage, you can build resilient, carbon‑neutral data‑center infrastructures that keep pace with the AI revolution.
Source
The details above are based on the original reporting by TechCrunch. Read the full story for additional context:
TechCrunch – Redwood Materials’ energy‑storage boom driven by AI data centers.