Exowatt, a provider of thermal energy solutions for data centers, secured $20 million in a seed funding round from a16z, Atomic, and Open AI’s Sam Altman to capitalize on the booming demand of the AI market, which is escalating the energy costs for data centers.
The company plans to cater to this spike in demand using its technology, the Exowatt P3. It consists of a modular, 3-in-1 system, a heat collector, a heat battery, and a heat engine capable of providing dispatchable power and heat throughout the day. Unlike traditional solar panels that convert sunlight into electricity directly, Exowatt stores solar energy in a thermal battery, which is stated to retain this energy for up to 24 hours per day.
With the recent funding secured, the company plans to bolster its team and introduce the Exowatt P3 to its initial roster of data center customers.
“AI models have been doubling in size every three months—a pace that requires significantly more data center power,” said Jack Abraham, CEO of Atomic and Co-Founder of Exowatt. “In order to keep up with AI advancements, we need more sustainable energy solutions, which is why we started Exowatt.”
According to the company, it has a backlog of demand for over 500 MWs for data centers across the U.S. and plans to begin deployments later this year.
According to Mercom’s recently released Q1 2024 Funding and M&A report for Storage & Smart Grid. VC funding for Energy Storage companies increased by 9% YoY, with $1.2 billion in 23 deals in Q1 2024 compared to $1.1 billion raised in 19 deals in Q1 2023.
Recently, MGA Thermal, a provider of thermal energy-based long-duration energy storage systems, secured $5.7 million in Additional funding. The round included existing investors Main Sequence and Melt Ventures, along with new investor JEKARA.
