Data centers have become the largest driver of a surging electricity demand that is straining US power grids. But the AI data center boom has also accelerated investment in a technology that could provide a silver lining for everyone—solid-state power transformers that replace industrial-age technology with modern power electronics.

Power grids currently rely on conventional transformer technology that is painstakingly assembled by hand and has a fundamental design dating back to the 1880s. Two copper wire coils manually wound around a steel core create electromagnetic fields that help step up voltage levels of alternating current electricity for long-distance transmission or step down voltage levels for the electricity use of homes and businesses. The largest power transformers cannot be mass-manufactured but are instead custom-built for each utility company’s electrical substations.

Manufacturing constraints, coupled with the scramble to upgrade US power infrastructure, have meant utility companies and other customers must wait up to several years for delivery of new power transformers. That not only hinders power grid infrastructure expansion needed to support growing electricity demand, but also delays the process of replacing aging power transformers.

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Thousands of electric vehicles in Waymo’s autonomous robotaxi fleet may eventually give up their used batteries for a very different purpose—contributing up to hundreds of megawatt-hours of stationary energy storage to local power grids.

That prospect comes from a “strategic supply agreement” announced by Waymo and B2U Storage Solutions on June 4. B2U has been repurposing thousands of used batteries from various electric vehicles by installing them in large stationary energy storage projects. Such energy storage facilities can capture excess renewable energy during low demand periods and release such energy when local power grids are experiencing peak demand periods.

“Our business is getting the full residual value out of electric vehicle batteries after they're no longer suitable for automotive use,” Freeman Hall, CEO of B2U Storage Solution, told Ars. “Waymo puts a lot of miles on EVs and their model is expanding rapidly, and so we're just very pleased and honored to be able to work with them.”

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