
Crusoe, the AI factory company, and ON.energy have announced a partnership to power the next generation of AI infrastructure: deploying 5 gigawatts of AI UPS™ technology across multiple hyperscale campuses. Commissioning will commence in 2026 and extend into 2027.
AI data centers present new dynamics the grid hasn’t encountered before. ON.energy’s patented AI UPS™ has been validated against ERCOT’s Large Load Interconnection requirements, meeting the grid stability and voltage ride-through standards that ERCOT has proposed as the baseline for responsible large-load interconnection in Texas. The AI UPS™ stores enough energy to power an entire campus for extended durations, significantly reducing variability on the grid during peak hours. The result is a data center that actively supports the grid.
Latham & Watkins LLP represented Crusoe in the transaction with a corporate deal team led by Houston partner Ashley Nguyen and New York partner Douglas Heitner, with associates Rebekah Bingham, Jennifer Pitsch Hayes, and Johnny Zhuang. Advice was also provided on project development matters by San Diego partner Seth Richardson and Houston partner Jonathan Katz; on tax matters by Bay Area partner Katharine Moir and Washington, D.C. partner Scott Cockerham, with associates Tessa Young and Molly Elkins; on intellectual property matters by New York partner Steven Betensky; and on other corporate matters by Ziyad Barghouthy.
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