Crusoe Energy’s Strategic Battery Investments Propel Data Center Expansion
Crusoe Energy Systems, a leader in sustainable data center solutions, has announced significant investments in energy storage to bolster its infrastructure. The company has entered into agreements with Form Energy and Redwood Materials to enhance the energy efficiency and reliability of its data centers.
Form Energy Partnership
Crusoe has committed to purchasing 12 gigawatt-hours of Form Energy’s innovative 100-hour iron-air batteries. This technology utilizes a reversible rusting process to store and release energy, offering a cost-effective and long-duration storage solution. Deliveries are scheduled to commence in 2027. This deal follows Form Energy’s recent agreement to supply a 30 gigawatt-hour battery to Google for a data center in Minnesota, valued at approximately $1 billion.
Redwood Materials Collaboration
In addition to the partnership with Form Energy, Crusoe is expanding its collaboration with Redwood Materials, a company specializing in recycling and repurposing electric vehicle (EV) batteries. Since June 2025, Crusoe has been operating a 12-megawatt, 63-megawatt-hour microgrid powered by repurposed EV batteries from Redwood. This installation was the largest of its kind at the time. The expanded agreement will add an additional 8 megawatts of power using second-life EV batteries, further enhancing Crusoe’s commitment to sustainable energy solutions.
Industry Context
The data center industry is experiencing unprecedented growth, with energy demand projected to increase nearly 300% by 2035. This surge is driven by the expansion of cloud computing and artificial intelligence applications. Companies like Crusoe are proactively addressing the associated energy challenges by investing in innovative storage solutions and sustainable practices.
Conclusion
Crusoe Energy’s strategic investments in advanced battery technologies from Form Energy and Redwood Materials underscore its commitment to sustainable and efficient data center operations. By integrating long-duration and repurposed energy storage solutions, Crusoe is positioning itself at the forefront of the evolving data center industry.
