TAR raises $120 million for off-grid AI data center power

TAR, an Austin-based company specializing in off-grid power systems for AI data centers, has raised $120 million in a Series A funding round. The round was led by Spark Capital and achieved a $1 billion post-money valuation. Additional participation came from prior investors Buckley Ventures and Align Fund.

To address the power bottlenecks and long interconnection queues facing the AI industry, TAR develops self-contained, modular systems in West Texas. These systems utilize renewable energy generation and batteries, with natural gas generators reserved for backup or emergencies. The company employs a vertically integrated approach, managing everything from site selection and engineering to construction and ongoing operations.

By utilizing a proprietary deployment automation stack and robotics, TAR aims to install generation capacity faster and with less field labor than traditional methods. The company is currently executing a utility-scale deployment for an undisclosed data center customer in Texas and is expanding its headquarters in Austin, its engineering office in San Francisco, and its manufacturing and logistics center in West Texas.