Crusoe Deepens Energy Storage Strategy With Redwood Expansion and 12 GWh Form Energy Deal for AI Data Centers

Crusoe has signed two significant energy storage agreements that strengthen its position in the race to build power-secure AI data center capacity. The company has expanded its existing partnership with Redwood Materials following the performance of an operational microgrid project, while also signing a separate agreement with Form Energy for up to 12 GWh of multi-day energy storage systems starting in 2027. Together, the deals show how AI infrastructure developers are moving beyond conventional grid dependence and taking a more direct role in securing the energy systems needed to support rapid data center deployment.

The significance of these agreements lies in their structure as much as their scale. Instead of treating energy storage as an auxiliary layer, Crusoe is integrating it into the core economics and delivery model of AI infrastructure. That reflects a broader market reality. As demand for compute capacity rises, the limiting factor is increasingly not demand for GPUs or modular facilities alone, but access to reliable power that can be deployed quickly, flexibly, and at scale.

 

Redwood Expansion Builds on Operating Performance

 

Crusoe’s expanded partnership with Redwood Materials follows the deployment of a 12 MW / 63 MWh microgrid system at a Crusoe Spark modular data center. According to the companies, the system, which combines solar power with repurposed electric vehicle batteries, achieved 99.2% operational availability over seven months of continuous operation with minimal unplanned downtime.

That operating record matters because one of the biggest questions around alternative energy systems for AI infrastructure is whether they can support high-performance compute loads without compromising uptime. In this case, Crusoe and Redwood are using performance data from a live deployment to justify a larger rollout. The next phase will increase deployment from four Crusoe Spark data centers to 24, substantially widening the use of this energy model within Crusoe’s modular footprint.

The strategic importance of the Redwood relationship goes beyond capacity expansion. It offers Crusoe a way to pair modular data center deployment with repurposed battery infrastructure, reducing reliance on slower traditional energy buildouts. It also strengthens the commercial case for second-life EV batteries in stationary power applications, particularly where reliability and rapid deployment are both important.

 

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Form Energy Adds a Longer-Duration Layer to the Power Strategy

 

Alongside the Redwood expansion, Crusoe has signed an agreement with Form Energy for up to 12 GWh of multi-day storage systems to support AI data center growth beginning in 2027. Form Energy, known for its iron-air battery technology, says its systems can deliver more than 100 hours of storage and avoid thermal runaway risk, an issue that remains a key point of concern in lithium-ion battery systems.

This second agreement changes the profile of Crusoe’s energy strategy. The Redwood partnership is built around proven modular microgrid deployment and reuse of EV batteries. The Form deal extends that approach into much longer-duration storage, which can provide a more resilient power foundation for data center operations facing grid congestion, renewable intermittency, or delays in traditional power infrastructure.

The scale of the Form agreement is particularly important. A 12 GWh reservation is not a pilot commitment. It signals a long-range procurement strategy aimed at locking in energy capacity, pricing, and delivery terms ahead of future demand. In a market where both AI infrastructure growth and power bottlenecks are intensifying, that kind of reserved volume can become a meaningful competitive advantage.

 

Energy Is Becoming the Decisive Constraint in AI Infrastructure

 

Taken together, the two deals highlight a structural shift in the AI data center market. Companies are increasingly being forced to think like energy planners as much as digital infrastructure developers. Crusoe’s stated approach of developing power infrastructure alongside the data center shows how this challenge is being addressed in practice.

This matters because the traditional model of securing land, building capacity, and then relying on grid expansion is becoming less dependable for fast-moving AI deployments. In many markets, grid interconnection timelines and power availability have become major obstacles to bringing new compute online. By contrast, Crusoe’s model aims to shorten time to market by pairing modular data centers with pre-arranged energy systems that can scale more predictably.

That strategy also has implications for resilience and cost. A power stack that includes solar, repurposed EV batteries, and multi-day iron-air storage can create more optionality in how data centers are built and operated. It may also reduce exposure to some of the risks that come with relying entirely on a strained grid or on a single storage technology.

 

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A New Model for AI Data Center Buildout Is Taking Shape

 

Crusoe’s latest agreements suggest that the buildout of AI infrastructure is entering a more energy-defined phase. The market is moving beyond a narrow focus on servers and data halls toward a model in which power sourcing, storage duration, deployment speed, and system resilience are central to competitive positioning.

The Redwood expansion offers evidence that repurposed battery-based microgrids can support AI workloads with strong uptime performance. The Form Energy agreement adds a longer-duration storage layer that could help Crusoe secure future capacity in a market where power access is increasingly scarce. Together, they show that energy storage is no longer peripheral to AI infrastructure strategy. It is becoming one of the main determinants of how quickly and reliably new data center capacity can be delivered.

For the wider sector, this is an important signal. As AI demand accelerates, data center developers that can align compute infrastructure with dedicated and scalable energy systems are likely to move faster than those waiting for conventional power pathways to catch up. Crusoe’s dual storage strategy points to a more integrated infrastructure model, one in which energy procurement and data center expansion are planned as part of the same growth equation.