--- title: An AI data center boom is fueling Redwood’s energy... description: Redwood Materials, the battery recycling startup founded by former Tesla CTO JB Straubel, has rapidly grown a new energy storage business unit since launching... canonical: https://daily.dev/posts/an-ai-data-center-boom-is-fueling-redwood-s-energy-storage-business-1md3jo5pq twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: An AI data center boom is fueling Redwood’s energy storage business | daily.dev og:description: Redwood Materials, the battery recycling startup founded by former Tesla CTO JB Straubel, has rapidly grown a new energy storage business unit since launching... og:url: https://daily.dev/posts/an-ai-data-center-boom-is-fueling-redwood-s-energy-storage-business-1md3jo5pq og:image: https://api.daily.dev/og/posts/1mD3jO5pQ.png og:image:alt: An AI data center boom is fueling Redwood’s energy storage business og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # An AI data center boom is fueling Redwood’s energy storage business **[TechCrunch](https://daily.dev/sources/tc)** · 4 min read · 1 upvotes · 0 comments ## Summary Redwood Materials, the battery recycling startup founded by former Tesla CTO JB Straubel, has rapidly grown a new energy storage business unit since launching it in June 2025, driven by surging demand from AI data centers. The San Francisco R&D lab has expanded four-fold to 55,000 sq ft with nearly 100 employees. The business repurposes collected EV batteries not yet ready for recycling to supply power to data centers, with its first customer being Crusoe. A recent $425M Series E round backed by Google and Nvidia will fund further scaling. The company is now pursuing hyperscaler customers with projects in the hundreds of megawatt-hours to multiple gigawatt-hours range, as data center operators face 5+ year grid connection wait times. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Similar posts on daily.dev - [Former Tesla CFO Deepak Ahuja joins Redwood Materials as battery recycler pivots to AI energy infrastructure](https://daily.dev/posts/former-tesla-cfo-deepak-ahuja-joins-redwood-materials-as-battery-recycler-pivots-to-ai-energy-infras-bdeu6q5p6) · The Next Web · 0 upvotes · 0 comments - [Redwood Materials raises another $350M to power up its energy storage business](https://daily.dev/posts/redwood-materials-raises-another-350m-to-power-up-its-energy-storage-business-mqrjobihw) · TechCrunch · 0 upvotes · 0 comments - [Redwood attracts Google for its $425M Series E as AI power needs rise](https://daily.dev/posts/redwood-attracts-google-for-its-425m-series-e-as-ai-power-needs-rise-u6amjyjb7) · TechCrunch · 0 upvotes · 0 comments - [Redwood Materials lays off 10% in restructuring to chase energy storage business](https://daily.dev/posts/redwood-materials-lays-off-10-in-restructuring-to-chase-energy-storage-business-cis0gmef6) · TechCrunch · 0 upvotes · 0 comments - [Redwood Materials reportedly cuts 5% of staff after $350M raise](https://daily.dev/posts/redwood-materials-reportedly-cuts-5-of-staff-after-350m-raise-7w0vvc04r) · TechCrunch · 0 upvotes · 0 comments --- Tags: [#ai-infrastructure](https://daily.dev/tags/ai-infrastructure) [View this post on daily.dev](https://daily.dev/posts/an-ai-data-center-boom-is-fueling-redwood-s-energy-storage-business-1md3jo5pq) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"An AI data center boom is fueling Redwood’s energy storage business","url":"https://daily.dev/posts/an-ai-data-center-boom-is-fueling-redwood-s-energy-storage-business-1md3jo5pq","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/an-ai-data-center-boom-is-fueling-redwood-s-energy-storage-business-1md3jo5pq"},"datePublished":"2026-02-19T21:15:21.727Z","dateModified":"2026-02-19T21:15:48.458Z","description":"Redwood Materials, the battery recycling startup founded by former Tesla CTO JB Straubel, has rapidly grown a new energy storage business unit since launching...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/3bddd1ea87538cf762dd682017f68b59?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/3bddd1ea87538cf762dd682017f68b59?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"TechCrunch","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"TechCrunch","logo":"https://media.daily.dev/image/upload/t_logo,f_auto/v1/logos/tc","url":"https://daily.dev/sources/tc"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/an-ai-data-center-boom-is-fueling-redwood-s-energy-storage-business-1md3jo5pq","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":1},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"ai-infrastructure","timeRequired":"PT4M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"TechCrunch","item":"https://daily.dev/sources/tc"},{"@type":"ListItem","position":3,"name":"An AI data center boom is fueling Redwood’s energy storage business"}]} ```