Exowatt's Solar Heat Batteries to Power AI Data Centers

The explosive growth of artificial intelligence is running into a massive problem: AI data centers need enormous amounts of power, and there isn't enough grid capacity to support them.

Enter Exowatt, a Miami startup that just launched ExoRise, a new division designed to power hyperscale data centers with solar energy that never runs out. The company is backed by OpenAI CEO Sam Altman, Silicon Valley investors, and even Leonardo DiCaprio.

Here's what makes this exciting. Exowatt developed P3 technology that captures solar energy during the day, stores it as heat, and converts it back to electricity whenever it's needed. That means data centers get reliable power around the clock without waiting years for grid upgrades or driving up electricity costs for local families and businesses.

The company plans to build these systems on remote land across the Southwest, including New Mexico, west Texas, Arizona and Nevada. These sun-drenched regions offer perfect conditions for solar power and have plenty of open space for fast deployment.

The timing couldn't be better. U.S. data center power demand is expected to hit 106 gigawatts by 2035, according to BloombergNEF. That's 36% higher than experts predicted just last year, driven by AI's massive computing needs.

More than 150 major data center projects were announced in 2024 alone, with over a quarter exceeding 500 megawatts each. Without creative solutions, this growth could overwhelm local power grids and compete with residential electricity needs.

The Ripple Effect

ExoRise's approach tackles multiple challenges at once. By building off-grid solar and battery systems on remote land, the company removes pressure from strained local utilities while enabling American AI development to continue growing.

The model also supports energy independence and resilience. Communities won't see their electricity bills spike to subsidize tech company power needs, and data centers won't have to wait years for utility companies to build new infrastructure.

Exowatt raised $70 million last year to commercialize its heat storage technology. The company already has over 90 gigawatt-hours of signed customer demand and expects its first pilot project to go live by the end of 2026.

Chief Data Center Officer Nic Bustamante put it simply: "The growth of AI is colliding with real limits on grid capacity. We're not just solving a business problem. We're enabling the future of American AI leadership."

This is what climate progress looks like when innovation meets urgent need.