Crusoe makes big battery buys for its data centers

Crusoe, a prominent data center developer, is significantly enhancing its energy storage capabilities through substantial battery acquisitions from Form Energy and Redwood Energy. The company is set to procure 12 gigawatt-hours of Form Energy’s innovative 100-hour batteries. This marks the second major transaction for Form, which recently announced a deal to construct a 30 gigawatt-hour battery for Google in Minnesota, valued at approximately $1 billion, as reported by The Information. While Form has not disclosed the financial details of the deal with Crusoe, it is expected to contribute hundreds of millions in revenue for the battery manufacturer, which is currently pursuing a $500 million funding round. Thus far, Form has successfully raised $1.4 billion, according to PitchBook. The company has also previously engaged in smaller contracts with utilities keen on exploring their cutting-edge technology. The technology behind Form’s iron-air batteries is fascinating; they generate electricity through an oxidation process where oxygen flows over iron pebbles, resulting in rust and electrical energy. To recharge, the battery undergoes a process that removes rust from the iron, releasing oxygen in the process. Anticipating the influx of significant contracts, Form began expanding its first manufacturing facility in West Virginia last year. In addition, Crusoe has revealed an expansion of its collaboration with Redwood Materials, a battery recycling and reuse enterprise established by former Tesla CTO J.B. Straubel. Since June, Crusoe has been operating a 12-megawatt, 63-megawatt-hour battery on a microgrid, which at the time was the largest installation of its kind utilizing second-life batteries. Redwood is set to provide an extra 8 megawatts of power through repurposed electric vehicle batteries.