US startup aims to make data centers less energy-intensive: Miami-based startup Exowatt, backed by OpenAI’s Sam Altman, has launched a new modular clean energy system to decarbonize energy-intensive data centers, according to a statement. The Exowatt P3 offers both dispatchable electricity and high-temperature thermal energy through a scalable design, with the energy solution already seeing a demand backlog of 1.2 GW from major data center operators and renewable energy developers across the US.

How it works: Exowatt’s technology is designed to help data centers generate, store, and dispatch clean energy efficiently using specialized lenses to collect solar energy and store it in a thermal battery made from cheap and readily available materials. This energy can then be dispatched when needed, providing a sustainable alternative to fossil fuels. With a cost of under USD 0.04 per kWh, the Exowatt P3 can reduce energy expenses by up to USD 35 mn and cut CO2 emissions by 438k tons for the average data center project.

Exowatt has backers: The Exowatt P3 launch follows a USD 20 mn seed round led by American venture capital firm a16z, venture studio Atomic, and OpenAI’s Sam Altman.

Data centers guzzle energy: Electricity consumption for data centers — facilities composed of networked computers, computing infrastructure, and storage systems — is expected to double by 2026, data by the International Energy Agency showed earlier this year. The growing demand for electricity is also evident in global tech giants’ emissions, with Google’s emissions surging nearly 50% in five years due to AI energy demand. US tech company Microsoft also reported a 30% increase in carbon emissions since 2020 driven by its AI investments.

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