AI data centers consume massive amounts of electricity, driving startups like Exowatt to seek innovative solutions. Hannan Happi, co-founder and CEO, has one target in mind: delivering power for just one cent per kilowatt-hour. “We went through countless designs,” Happi told TechCrunch. “Our goal is to optimize for cost, efficiency, and scalability.” If successful, Exowatt’s approach could transform how AI infrastructure is powered worldwide.
Exowatt recently secured an additional $50 million in an extension to its $70 million Series A round, with support from MVP Ventures, 8090 Industries, and notable investors like Sam Altman and Andreessen Horowitz. Happi explained that growing market momentum and strong investor interest prompted the new round. The company’s current backlog represents about 10 million P3 units, equal to 90 gigawatt-hours of potential capacity.
The heart of Exowatt’s innovation is the P3 device—a shipping-container-sized box topped with lenses that focus sunlight onto a special brick. This “thermal battery” stores heat for up to five days, which a Stirling engine then converts into electricity. Multiple P3 units can be combined to scale power output, and the system’s efficiency rivals traditional photovoltaic panels paired with lithium-ion batteries. Happi emphasized that simplicity and modularity are key to the design.
While concentrated solar power has existed for decades, Exowatt aims to leverage manufacturing scale to close the gap with conventional solar and battery solutions. “There are just over 100 solar thermal projects worldwide, versus 1.5 billion solar panels produced each year,” Happi noted. By applying mass-production techniques, Exowatt hopes to hit its one-cent-per-kWh target once annual production reaches about one million units.
Exowatt’s system isn’t ideal for every location. The units require sunny regions and potentially large land areas for data center-scale deployment. Yet Happi sees a strategic alignment with new AI data center projects, many of which are being built in sun-rich regions. “We’re not running short of projects,” he said, highlighting the growing demand for reliable, low-cost renewable energy in the tech sector.
source: Techcrunch