Crusoe and Redwood Materials Expand Strategic Partnership, Scaling to 7x the Original AI Infrastructure Density

Crusoe, the AI factory company, led by Chase Lochmiller, Cully Cavness, and the team, and Redwood Materials, securing U.S. critical materials, led by JB Straubel and the team, have announced a significant expansion of their partnership to scale renewable-powered AI compute. 

Following the June 2025 deployment of a Redwood Energy 12 MW / 63 MWh microgrid, the companies are expanding from 4 to 24 Crusoe Spark™ modular data centers, increasing total compute capacity by nearly 7x.

The project launched as the world’s largest second-life battery system, using solar and repurposed EV batteries to power four Crusoe Spark data centers at Redwood Materials’ Nevada campus. Since commissioning, it has achieved 99.2% uptime over seven months, with Crusoe Cloud reaching 99.9% availability using grid backup.

This performance validates a core premise of the partnership: repurposed EV batteries, orchestrated through Redwood Energy’s Pack Manager, can reliably deliver 24/7 power for high-performance compute workloads like Crusoe Spark™ modular AI factories.

“Since launch, the Redwood Energy–Crusoe system has proven that repurposed EV batteries can reliably power high-performance compute at scale,” said JB Straubel, Founder and CEO of Redwood Materials. “Achieving 99.2% uptime validated the approach and enabled a nearly sevenfold expansion in compute capacity on the same energy infrastructure, offering a faster, more flexible, and lower-cost path to building AI infrastructure.”

“Expanding with Redwood Energy to 20 MW shows how the AI factory of the future can scale rapidly through advanced energy solutions and modular infrastructure,” said Cully Cavness, Co-Founder, President, and Chief Strategy Officer of Crusoe. “This enables fast, predictable delivery of high-performance compute through Crusoe Spark modular data centers.”

Key highlights:

• 7x compute expansion: Scaling from 4 to 24 Crusoe Spark data centers

• Proven reliability: 99.2% uptime; Crusoe Cloud reaches 99.9% with grid backup

• Sustainable energy: Powered by second-life EV batteries and on-site solar

• Rapid scalability: Modular deployment enables buildout in months, not years