Brenmiller to Expand bGen™ Capabilities for AI Data Center Cooling Applications

Rhea-AI Summary

Brenmiller Energy (Nasdaq: BNRG) has announced plans to expand its bGen™ thermal battery capabilities for AI data center cooling applications. The company aims to develop a Cold Thermal Energy Storage (CTES) solution called bGen™ Cool, responding to the rapidly growing power demand in data centers driven by AI computing.

Key points:

• Data center power demand is expected to increase by 160% by 2030, reaching 3-4% of global power consumption
• Brenmiller anticipates minimal investment to adapt its existing technology for data center applications
• The bGen™ Cool aims to provide cost-competitive and energy-efficient cooling solutions for data centers
• CTES systems can drive significant decarbonization and financial value for data center owners
• Brenmiller continues bGen™ production for power-to-heat applications, with potential sales valued at up to $500 million

Positive

• Expansion into the rapidly growing AI data center cooling market
• Minimal investment required to adapt existing bGen™ technology for data center applications
• Potential for significant decarbonization and financial value for data center owners
• Alignment with data center industry trends towards prefabrication and modular solutions
• Continued production of bGen™ for power-to-heat applications with potential sales up to $500 million

Negative

• Entering a new market segment with potential competition and adaptation challenges
• Dependence on the continued growth of AI computing and data center power demand

Insights

Tech Expert

Brenmiller's announcement of expanding its bGen™ capabilities to cater to AI data center cooling solutions is a significant technological advancement. The shift towards Cold Thermal Energy Storage (CTES) solutions, particularly in the data center space, aligns with the industry's pressing need to manage increased power demands efficiently. As AI integration accelerates, data centers consume exponentially more electricity, necessitating innovative cooling solutions. Brenmiller's bGen™ Cool technology, with its modular design and fast-charging capabilities, positions it as a strong contender in this market. The minimal investment required to adapt existing technology reduces financial risk and speeds up market entry. Moreover, the ability to provide around-the-clock cooling and operational reliability addresses a critical need for data centers aiming to maintain uptime and efficiency.

By offering a scalable and energy-efficient cooling solution, Brenmiller can potentially tap into a lucrative market segment, providing both financial and environmental benefits. This innovation also supports the trend towards modular and prefabricated solutions in the data center industry, making it a timely and relevant development.

Financial Analyst

The financial implications of Brenmiller's move to expand its bGen™ thermal battery for data center applications are noteworthy. The anticipated 160% increase in data center power demand by 2030 highlights a major growth opportunity. Brenmiller's claim of minimal investment requirements to adapt its technology reduces capital expenditure risks and could lead to a quicker return on investment. The potential commercial opportunities valued at up to $500 million further underline the company's strategic positioning.

From a financial perspective, aligning with major players like Apple, Google and Meta could significantly boost Brenmiller's market presence and revenue streams. The company's focus on decarbonization also aligns with the increasing emphasis on ESG (Environmental, Social and Governance) criteria, potentially attracting ESG-focused investors. However, investors should remain cautious about the execution risks and the competitive landscape in the thermal energy storage market.

Market Research Analyst

Brenmiller's expansion into the data center cooling market comes at a time when the sector is poised for significant growth. The rapid increase in AI computing drives higher power consumption, necessitating efficient cooling solutions. Brenmiller's bGen™ Cool technology, leveraging its existing TES capabilities, presents a strong value proposition. The modular and prefabricated design aligns well with industry trends, offering flexibility and scalability.

Market dynamics suggest a strong demand for innovative cooling solutions that can reduce energy costs and enhance operational reliability. Brenmiller's ability to alleviate grid strain and transform data centers into flexible balancing assets provides additional value. However, market entry challenges and competition from established players should be considered. Overall, Brenmiller's strategic move positions it well to capitalize on emerging market opportunities.

• Driven by rapid growth in AI computing, Brenmiller identifies significant new decarbonization and financial opportunity in the data center value chain
• Estimates point to a 160% increase in data center power demand by 2030, driving innovation and investment in cooling and energy efficiency solutions
• Brenmiller anticipates minimal investment is needed to adapt its bGen™ thermal battery for data center applications

ROSH HA’AYIN, Israel--(BUSINESS WIRE)-- Brenmiller Energy Ltd. ("Brenmiller", "Brenmiller Energy” or the “Company”) (Nasdaq: BNRG), a leading global provider of thermal energy storage ("TES") solutions for industrial and utility markets, today announced that it will expand its proprietary technology’s capabilities and develop a Cold Thermal Energy Storage (“CTES”) solution for data center applications, called the bGen™ Cool. The Company will continue bGen™ production for power-to-heat applications in service of its current commercial opportunities, valued at up to $500 million in potential sales.

The rapid integration of artificial intelligence (“AI”) computing into enterprise systems is driving unprecedented demand for power. According to a study published by the International Energy Agency in January 2024, it requires almost 10x more electricity to process a ChatGPT query than it does to run a typical Google search. A note published by Goldman Sachs research in May 2024 estimates that data center power demand will increase by more than 160% by 2030, growing from 1-2% to 3-4% of all power consumption worldwide and creating considerable upstream opportunity for innovation and investment in cooling and energy efficiency technologies. Leveraging the bGen™’s core competencies, Brenmiller expects minimal investment is needed to adapt its existing proprietary TES technology to meet data center demand.

“Data center needs are not too dissimilar from those of our flagship customer base, except they require cold water or air instead of heat or steam,” said Avi Brenmiller, chairman and Chief Executive Officer of Brenmiller Energy. “With fairly straightforward modifications to our bGen™ design, we are confident in our ability to deliver a cost-competitive and energy-efficient data center cooling solution to the market.”

Similar to the value proposition for industrial power consumers, CTES systems can drive significant decarbonization and financial value for data center owners like Apple, Google and Meta. The bGen™’s modular design aligns with the data center industry’s trend toward prefabrication and modular (PFM) solutions, and its industry-leading fast-charging capabilities are well-suited to lower data center energy costs while delivering around-the-clock cooling and 24/7 operational reliability. With the ability to charge and discharge simultaneously or independently and on-demand, the bGen™ can also help alleviate data center strain on the grid and transform them into flexible balancing assets.

About bGen™
Brenmiller’s TES system, bGen™, converts electricity into heat to power sustainable industrial processes at a price that is competitive with natural gas. The bGen charges by capturing low-cost electricity from renewables or the grid and stores it in crushed rocks. It then discharges steam, hot water, or hot air on demand according to customer requirements. The bGen also supports the development of utility-scale renewables by providing critical flexibility and grid-balancing capabilities. In 2023, bGen™ was named among TIME’s Best Inventions in the Green Energy category.

About Brenmiller Energy Ltd.
Brenmiller Energy helps energy-intensive industries and power producers end their reliance on fossil fuel boilers. Brenmiller’s patented bGen™ thermal battery is a modular and scalable energy storage system that turns renewable electricity into zero-emission heat. It charges using low-cost renewable electricity and discharges a continuous supply of heat on demand and according to its customers’ needs. The most experienced thermal battery developer on the market, Brenmiller operates the world’s only gigafactory for thermal battery production and is trusted by leading multinational energy companies. For more information visit the Company’s website at https://bren-energy.com/ and follow the Company on X (formerly Twitter) and LinkedIn.

Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. Statements that are not statements of historical fact may be deemed to be forward-looking statements. For example, the Company is using forward-looking statements in this press release when it discusses: the Company’s plans to expand its proprietary technology’s capabilities and develop a CTES solution for data center applications; the Company’s current commercial opportunities valued at up to $500 million in potential sales; the Company’s expectation that minimal investment is needed to adapt its existing proprietary TES technology to meet data center demand; the Company’s ability to deliver a cost-competitive and energy-efficient data center cooling solution to the market, and that the Company’s bGen™ product can help alleviate data center strain on the grid and transform them into flexible balancing assets; and the estimated growth in data center power demand by 2030. Without limiting the generality of the foregoing, words such as “plan,” “project,” “potential,” “seek,” “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “could,” “estimate” or “continue” are intended to identify forward-looking statements. Readers are cautioned that certain important factors may affect the Company’s actual results and could cause such results to differ materially from any forward-looking statements that may be made in this press release. Factors that may affect the Company’s results include, but are not limited to: the Company’s planned level of revenues and capital expenditures; risks associated with the adequacy of existing cash resources; the demand for and market acceptance of our products; impact of competitive products and prices; product development, commercialization or technological difficulties; the success or failure of negotiations; trade, legal, social and economic risks; and political, economic and military instability in the Middle East, specifically in Israel. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s Annual Report on Form 20-F for the year ended December 31, 2023 filed with the SEC on March 18, 2024, which is available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240718780483/en/

Media:

Tori Bentkover

brenmillerenergy@antennagroup.com

Source: Brenmiller Energy Ltd.

FAQ

What is Brenmiller Energy's new product for data center cooling called?

Brenmiller Energy's new product for data center cooling is called bGen™ Cool, a Cold Thermal Energy Storage (CTES) solution based on their existing bGen™ thermal battery technology.

How much is data center power demand expected to increase by 2030 according to Goldman Sachs?

According to a Goldman Sachs research note, data center power demand is expected to increase by more than 160% by 2030, growing from 1-2% to 3-4% of all power consumption worldwide.

What is the potential sales value of Brenmiller Energy's (BNRG) current commercial opportunities?

Brenmiller Energy (BNRG) reports that its current commercial opportunities for bGen™ production in power-to-heat applications are valued at up to $500 million in potential sales.

How does Brenmiller Energy's bGen™ Cool aim to benefit data center owners?

Brenmiller Energy's bGen™ Cool aims to provide cost-competitive and energy-efficient cooling solutions for data centers, potentially driving significant decarbonization and financial value for data center owners like Apple, Google, and Meta.