Google just made a billion-dollar bet on solving AI's energy crisis. The tech giant has paid Form Energy $1 billion for its groundbreaking 100-hour battery system, a deal that could reshape how data centers power their operations. The massive purchase clears the runway for Form Energy to raise fresh capital before a potential public debut in 2027, marking one of the largest clean tech transactions of the decade.
Google is throwing serious cash at the energy problem threatening to bottleneck AI development. The company's $1 billion deal with Form Energy represents the largest commitment yet by a major tech player to long-duration energy storage, a technology that's suddenly become critical as AI data centers devour electricity at unprecedented rates.
The purchase centers on Form Energy's unique iron-air battery system, which stores energy for up to 100 hours - a stark contrast to the four-hour maximum of conventional lithium-ion batteries. For Google's sprawling network of data centers powering everything from Search to Gemini AI models, that extended storage capacity means the ability to ride out multi-day grid disruptions or renewable energy gaps without falling back on fossil fuel backup generators.
Form Energy, founded in 2017 by veterans from MIT and Tesla's battery division, has been developing its iron-air technology with backing from Breakthrough Energy Ventures, ArcelorMittal, and other strategic investors. The startup's batteries work by converting iron to rust and back again, breathing in oxygen from the air - a process that's dramatically cheaper than lithium-ion alternatives because iron is abundant and the system doesn't require expensive rare earth metals.
The timing couldn't be more critical for Google. The company's AI ambitions are colliding hard with energy reality. Training large language models and running inference at scale require massive, constant power draws that often exceed what local grids can reliably supply. Industry analysts estimate that , up from just 2% in 2023.
