TAR builds self-contained, off-grid power systems for AI data centers, combining solar, batteries, and backup natural gas generators at a site in West Texas that doesn't connect to the electrical grid. The company will use the new funding to hire engineers, expand manufacturing, grow its Austin headquarters and San Francisco engineering office, and speed up deployments already underway.
Led by Spark Capital, an investor in Anthropic; returning investors Buckley Ventures and Align Fund also participated.
“Power is becoming the main bottleneck to scaling compute,” Spark Capital general partner Will Reed said, as data center projects increasingly stall on grid capacity and local opposition. TAR's off-grid model, requiring no interconnection queue or utility approval, offers a way around that constraint, and its $1 billion valuation on a $120 million raise signals investor appetite for power solutions that sidestep the grid bottleneck entirely rather than compete for scarce grid capacity.