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Rice Researchers Explore Whether Batteries Can Handle the AI Energy Demand

Rice researchers study whether vanadium flow batteries from Katy, Texas, can meet the AI data center energy demand.

By mitch·4 min read
A vanadium flow battery sits in a dim data center aisle beside glowing server racks.

Most Americans think a slowdown in AI development would be a good idea, according to a new Reuters poll. The survey also found that they want stronger safeguards around data centers. Researchers at Rice are now looking into whether batteries produced in Katy, Texas, could meet the power needs of AI systems.

Jon Parrella, the CEO of TerraFlow Energy, says his firm is constructing vanadium flow batteries designed for use in data centers. These batteries take electricity from the grid and hold it in chemical form. Should grid demand surge, a data center could sever its link to the grid and keep running on the stored power instead.

“We’re overwhelmed with interest and demand, just because of the unique architecture of this battery,” Parrella explained.

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How the Vanadium Batteries Work

Parrella points to chemicals used in vanadium flow batteries as a means of generating power. The Department of Energy notes that these batteries need extensive testing to ensure safety, adding that minor issues can turn into large-scale problems.

The system draws current from the power lines and sends it through the chemical cells, where it gets stored. Then that stored energy moves into the machines inside the data center. Should the grid fail, for example during a hot day when demand reaches record levels, the data center can cut off its connection to the power lines and continue operating using the battery instead.

The battery Parrella described is capable of operating for a span of up to ten hours without being connected to the grid, with its runtime extending across six, seven, eight, or nine hours as well.

The Cost Problem

Parrella says the batteries aren’t cheap right now, with prices running upwards of $7 million. They’re being made in Katy, and the company is hoping to open two bigger plants soon. As production grows, Parrella thinks the cost could come down.

“Battery technologies, as you can see, have changed,” Parrella said. “Lithium-ion is not the only game in town. There are much better and safer technologies that are out there, and there’s a lot more evolving right now.”

The Timing With Abbott

Data centers are now drawing closer scrutiny from lawmakers, and the search for battery replacements is part of the response. Governor Greg Abbott has requested a hold on data center permits, and Parrella suggested that pause could nudge more developers toward battery choices as a way to address power worries.

Researchers from Rice University’s Baker Institute recently interviewed Parella on the subject of data center power options. Their remarks indicated that businesses are searching for alternatives as lawmakers examine data centers.

What the Research Covers

Scientists at Rice are studying whether batteries can manage the energy needs of artificial intelligence systems. This research connects directly to the firm’s production in Katy. The company believes the technology could help answer some of the power worries raised by a new operation in Fort Bend County.

The Department of Energy has issued a warning about safety testing, which indicates that the technology is still developing. The agency cautions that minor issues could escalate into major problems.

The Bottom Line

Parrella’s wager is on battery alternatives expanding. Vanadium flow batteries, in his view, offer a safer and more dependable choice than lithium-ion. The price hurdle is genuine, yet he expects that ramping up production will push costs downward.

The company has laid its cards on the table: the battery already exists, demand is strong, and it can operate without a grid connection for ten hours.

The issue at hand is whether developers will opt for it instead of the grid once Abbott’s pause ends. Abbott is prepared. The choice rests with the market.

Key Facts Box

  • Poll: Most Americans believe a slowdown in AI development would be a good thing
  • Poll: Americans also want more safeguards in place
  • Battery type: Vanadium flow
  • Current cost: Can run upwards of $7 million
  • Off-grid runtime: Up to ten hours
  • New facilities: Two planned, larger scale
  • Abbott’s move: Asked the state to pause data center permits

The tale concerns a firm which believes it holds an answer to a matter of national importance. The issue at hand is whether its proposed remedy can expand quickly enough to actually make a difference.

Source material: “Rice researchers explore if batteries can handle the AI energy demand,” ABC13 Houston.

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