Miami-Based Startup Launches Revolutionary Clean Energy Solution
Miami, FL – In a bold move to address the burgeoning energy demands of AI data centers, Miami-based startup Exowatt, backed by OpenAI Inc.’s Sam Altman, has unveiled a groundbreaking modular system designed to generate, store, and dispatch clean energy.
Innovative energy solution for data centers
On Tuesday, Exowatt introduced a novel approach combining a solar energy collector with a thermal battery capable of delivering both heat and electricity. Despite being a relatively new entrant, the company already boasts a demand backlog of 1.2 gigawatts from some of the world’s leading data center operators and renewable energy developers.
“They’re desperate,” remarked co-founder Jack Abraham about the data center operators. “If the price of this energy were three times or four times what we’re able to deliver it at, we’d probably still have nearly the same number of customers.”
The AI energy dilemma
AI data centers are notorious for their immense energy consumption, posing a significant threat to climate commitments of tech giants like Microsoft Corp., Alphabet Inc.’s Google, and Amazon.com Inc. The escalating energy demand is also straining already overburdened grids, with some countries unable to supply enough renewable energy for planned data centers, according to a Bloomberg analysis.
Exowatt’s unique approach
Exowatt differentiates itself by selling its hardware and software directly to customers, enabling them to develop their own renewable energy projects. The startup’s first data center project, set to go live later this year in West Texas, will initially support a large crypto-mining customer with plans to expand to 50 megawatts next year.
The company’s proprietary optical collection system uses lenses to harness solar energy, akin to a magnifying glass focusing sunlight to generate heat. “It’s effectively that with a much, much bigger lens,” Abraham explained. This energy is then stored in a heat battery made from a clay and ceramic composite, a cost-effective medium abundant in US supply chains.
Economic and environmental impact
Exowatt claims its unsubsidized levelized cost of energy is $0.04 per kilowatt hour, comparable to conventional energy sources. “Since data centers are proliferating, you want them to be self-sustaining in renewable ways, rather than straining the grid or, even worse, being on fossil fuels themselves,” noted Nik Sawe, a policy analyst at Energy Innovation, a non-partisan energy and climate policy think tank.
Challenges and market potential
While thermal battery systems are gaining traction in climate tech, scaling them can be challenging due to the customized nature of industrial facilities and the expensive retrofits required. “Convincing industrial customers to understand and think through the amount of retrofits they might have to do in order to electrify their current processes and get them off the fossil fuels can be a heavier task if there’s institutional inertia against that,” Sawe added.
Exowatt’s initial focus on data centers, a rapidly growing source of power demand, offers a more straightforward and scalable market. However, the technology is not universally applicable; approximately 60% of US data centers are located in regions with sufficient sunlight for this solution to be viable.
Future prospects
The significant backlog of demand highlights the value of Exowatt’s system, but the company’s ability to scale manufacturing and build a robust supply chain remains a critical concern. “Like Elon Musk famously said, it’s easy to build a couple of prototypes; it’s extremely difficult to build hundreds of thousands or millions of units,” noted Parvizian.
As Exowatt moves forward, its innovative approach to clean energy could play a crucial role in mitigating the environmental impact of AI and supporting the transition to renewable energy.