**The Future of Data Centers: Redwood Supplies Scores a Whopping $425 Million to Fuel AI-Powered Knowledge Facilities**
I’m not going to sugarcoat it – the future is all about data centers. And, as we all know, the key to making that a reality lies in energy storage. So, when I heard that Google and other deep-pocketed investors recently dropped a staggering $425 million into Redwood Supplies, a battery recycling and cathode manufacturing startup founded by former Tesla CTO JB Straubel, I knew this was big.
To put it into perspective, this latest investment brings their total capital raised to a whopping $4.9 billion, with a valuation of over $6 billion. Yes, you read that right – over $6 billion. That’s a whole lotta money.
But what’s the draw here, you ask? Well, it’s all about energy storage, folks. Specifically, the power to fuel data centers. Now, Redwood Supplies has been around for a while, initially focusing on recycling scrap from battery manufacturing and consumer electronics. But they didn’t stop there. They also ventured into cathode manufacturing a few years ago and recently launched a new energy storage venture that takes old EV batteries and turns them into micro-grids to power AI data centers and industrial sites.
The beauty of Redwood’s energy storage venture lies in its closed-loop supply chain. They process scrap to extract materials like nickel and lithium that would normally be mined, and then sell these materials to customers like Panasonic to make new batteries. It’s all about making power storage a vital infrastructure, especially with the surge in electricity demand from AI, data centers, and manufacturing.
Right now, Redwood claims to recover over 70% of all used or discarded battery packs in North America, which can be repurposed as power storage. They’ve got over 1 gigawatt-hour of storage capacity and aim to deploy 20 gigawatt-hours by 2028. That’s a whole lotta power, folks.
The investors are clearly on board with Redwood’s vision. Nvidia, Capricorn, and Goldman Sachs are all part of this latest round, and it’s clear that energy storage is where it’s at. Whether you’re a data center or an industrial site, having reliable power storage is no longer a nice-to-have, but a necessity. Redwood Supplies is well-positioned to play a big role in this space.
**Update (March 2023):**
Fast-forward to now, and Redwood Supplies has made some significant moves. They’ve announced plans to expand their energy storage capacity to 30 gigawatt-hours by the end of 2025, with a focus on powering data centers and industrial sites in the Asia-Pacific region. And, in a major coup, they’ve partnered with a major tech company to develop a new line of AI-powered energy storage solutions.
Stay tuned for more updates on this story as we continue to monitor developments in the energy storage and data center spaces. It’s going to be an exciting ride!
