Daniyal AhmedU.S.-based startup Rune Energy is developing modular data centers that operate directly from solar farms, using electricity that might otherwise be lost because of grid congestion, renewable energy curtailment or limitations in solar power conversion.
The company’s technology, called Renewable Energy Linked Intelligent Compute (RELIC), places compact computing units alongside utility-scale solar installations. By connecting directly to the solar array’s direct-current (DC) output, the system is designed to provide electricity for artificial intelligence workloads without relying on conventional grid connections.
According to an October 10 report by IEEE Spectrum, Rune’s approach could offer solar developers an additional source of revenue while addressing the growing electricity requirements of AI computing infrastructure.
Table of contents
- Turning unused solar electricity into computing power
- Modular data centers connect directly to solar arrays
- Battery storage addresses solar intermittency
- Company targets expansion to 100 MW
Turning unused solar electricity into computing power
Solar curtailment occurs when electricity generation must be reduced because grid infrastructure cannot accommodate the available supply or because electricity demand is insufficient.
The problem has become increasingly important as renewable energy capacity expands faster than transmission infrastructure in several U.S. markets.
Research published by S&P Global Market Intelligence in September 2026 found that six U.S. independent system operators curtailed approximately 23.8 million MWh of renewable electricity during the first seven months of the year, an increase of about 17.5% compared with the same period in 2025.
Rune Energy aims to use some of this otherwise unavailable electricity by placing computing infrastructure directly at solar generation sites.
The company enters power purchase agreements with solar farm operators, allowing it to buy electricity directly from the projects. This arrangement could create an additional revenue stream for solar developers during periods when electricity cannot be exported economically or physically to the grid.
Rune estimates that approximately 50,000 GWh of utility-scale solar electricity is wasted annually. However, that figure is a company estimate and has not been independently verified.
Modular data centers connect directly to solar arrays
Rune’s RELIC units are self-contained computing systems equipped with graphics processing units (GPUs), cooling equipment, networking infrastructure and power electronics.
Each module measures approximately eight feet long, two feet wide and five feet high, weighs about 2,000 pounds and can draw up to 100 kW of electricity, according to the company.
Unlike conventional data centers that typically receive alternating-current electricity from the grid, RELIC units connect directly to the DC electricity produced by solar panels.
This configuration eliminates the need for an intermediate DC-to-AC conversion before supplying power to the computing system, although additional DC-to-DC conversion is still required to deliver electricity at the appropriate voltage.
The design may also help capture electricity that would otherwise be lost through inverter clipping, which occurs when solar panels generate more DC power than an inverter can convert.
However, the efficiency advantage may be relatively modest.
Constance Crozier, an assistant professor at the Georgia Institute of Technology, told IEEE Spectrum that conventional DC-to-AC conversion is already approximately 95% to 97% efficient. She suggested that reducing equipment requirements and associated costs could be a more significant benefit than electricity conversion savings alone.
Battery storage addresses solar intermittency
One of the principal challenges of operating data centers directly from solar farms is maintaining computing operations when sunlight is unavailable.
Unlike conventional grid-connected facilities, Rune’s modular data centers depend on locally available electricity.
The company says its systems incorporate battery storage to support computing operations during nighttime hours and periods of reduced solar generation.
Determining the appropriate battery capacity is therefore essential to the model’s technical and economic performance.
Rune uses historical solar generation data and site-specific modeling to estimate available electricity and determine the required balance between computing equipment and storage.
Independent research also supports the broader concept of locating flexible electricity demand near renewable generation.
A March 2026 report commissioned by California nonprofit Next 10 and led by researchers at the University of Pennsylvania found that strategically located data centers could make use of curtailed solar electricity while reducing the need for some grid infrastructure investments.
However, the feasibility of such arrangements depends on local grid conditions, available renewable generation, battery costs and the operating requirements of the data center.
Company targets expansion to 100 MW
Rune reports that its modular data centers are operating at sites in California, Texas and Massachusetts.
The company says its design enables rapid deployment because the modules are manufactured in advance and do not require the same electrical infrastructure as conventional grid-connected data centers.
Its computing systems are intended primarily for AI inference, smaller model-training workloads and fine-tuning applications.
Rune plans to expand its computing capacity to 100 MW over the next 12 months, although that remains a company target rather than a confirmed deployment commitment.
The development comes as the U.S. data center industry searches for additional electricity sources to meet rising demand from artificial intelligence.
While colocating data centers with solar generation will not eliminate the need for grid expansion or firm electricity supplies, the approach presents a potential opportunity to make productive use of renewable energy that existing infrastructure cannot accommodate.
For solar developers, the model could also introduce a new commercial application for surplus generation, particularly in markets experiencing frequent curtailment or transmission congestion.
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Sources
- IEEE Spectrum, Modular Data Center Company Harnesses Excess Solar Power
- S&P Global Market Intelligence, U.S. grid congestion and data centers
- Next 10, Cleaner, More Cost-Effective Data Centers in California
- Reuters, Data centers’ flexible power usage could save the grid billions
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