TechCrunch Industry News An AI data center boom is fueling Redwood’s energy storage business; plus, Toyota hires seven Agility humanoid robots for Canadian factory
Feb 20, 2026
A surge in AI data centers is driving rapid growth for a new energy storage unit tied to recycled EV batteries and large-scale scaling plans. Strategic investments from major tech firms and expanded R&D labs are enabling hardware, software, and power electronics integration. Toyota is piloting humanoid robots to unload warehouse tugs, highlighting deployment challenges, fleet AI, and future safety improvements.
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AI Data Centers Drive Energy Storage Demand
- AI-driven data center construction is creating urgent demand for scalable energy storage solutions.
- Redwood Materials expanded R&D and raised $425M to meet data-center related storage needs.
Storage As A Grid-Connection Shortcut
- Companies face multi-year grid connection delays while demand to build AI capacity surges.
- Energy storage provides a faster, deployable alternative to waiting for new grid capacity.
Repurposed EV Batteries Power Crusoe Pilot
- Redwood Energy's first customer was Crusoe, using repurposed EV batteries to power a modular data center.
- The system produced 12 megawatts and 63 megawatt-hours for Crusoe's initial Stargate site.