Business
This Long Beach startup says it has a patch for California’s power problems
Many companies in California struggle to get enough electricity to power their growing businesses. One Long Beach startup just raised $26 million for what it says is a quick fix for that problem.
There are limits on how much power each company can draw from the public power grid so fast-growing industries can’t just crank up their consumption whenever they want. For uninterrupted supply, they sometimes have to wait for local utilities to build capacity, which can take years.
Critical Loop — an energy tech company based in an office overlooking the Long Beach airport — has already landed major clients and investors with its power management controller. It helps companies get more power when they need it and save money by seamlessly switching between the public grid, batteries and their on-site solar panels and generators.
The company is thriving in California because there is so much unmet need for power, Critical Loop Chief Executive Bala Ramamurthy told The Times.
“The amount of power-hungry industries here in L.A., especially across ports, logistics and manufacturing, is significant,” he said. “California is at the center of many of the grid challenges we’re solving.”
The company announced Tuesday that it has raised $26 million, bringing its total funding to $49 million. The funding was led by Conifer Infrastructure Partners and Hanover.
The startup did not disclose its valuation. It plans to use the money to power sites beyond California, expanding into sites such as data centers and advanced robotics warehouses.
It says it can bring more power to companies much sooner than others, in days or weeks, rather than waiting years for utilities to upgrade local substation and expand capacity.
Founded in 2023, the startups team has grown from eight to 35 people in the past year, with hires from SpaceX, Palantir and Tesla.
The team works out of Donald Douglas Drive in Long Beach, inside a former hangar. In the sprawling space, employees work on assembling and testing hardware, including container-sized batteries and their autonomous controllers.
The firm won a bid to manage peak-load reduction at the San Diego International Airport. During peak operating hours, when all conveyor belts and baggage sorting equipment are running, the airport relies on Critical Loop’s controller to predict and manage on-site battery needs.
CLB 500: Critical Loop’s container-sized battery units can be transported on the back of a truck delivering on-site power for industrial facilities. Their setup enables facilities to store power from the electric grid whenever necessary, and use on-site batteries to cover peak-constrained hours.
(Critical Loop)
It took four months to set up that system, Ramamurthy said.
The startup, effectively helps industries cut their electricity bills. Utilities charge large facilities based on their highest moment of power use in a given month — not their average. For instance, one peak summer afternoon, with every conveyor belt, boarding gate and baggage sorter running at full blast, can set the airport’s electricity rate for the entire month.
Critical Loop’s system switches to on-site batteries and solar during those peak hours, then back to the grid when demand drops, saving the airport millions over years.
The company recently deployed an electric-vehicle charging fleet for the company TerraWatt in just a few months. While the local utility’s upgrade timeline was five years, Critical Loop’s setup enabled the facility to draw power from the grid for most of the year and use on-site batteries to cover peak-constrained hours.
“What’s really compelling about battery-plus-inverter based systems is this ability to deliver power quicker by boosting the available power in concert with the grid,” said Ramamurthy.
It is in a sweet spot right now as the massive buildout of the data centers that power artificial intelligence has created an insatiable demand for quick power solutions, said Taylor McNair, deputy director of Gridlab, a technical think tank.
“In general, there is increased interest in on-site generation and off-grid deployments, particularly for new data centers,” he said.
While some California billionaires and businesses have been leaving the state, Critical Loop’s presence in Southern California has grown. It has a number of projects in Los Angeles County that need extra power but can’t rely solely on the grid.
It chose to set up in Long Beach to be close to high-quality hires as well. Southern California’s engineering talent, especially from companies such as SpaceX, Tesla and other advanced manufacturing and energy players, is difficult to find elsewhere.
“For a company building and deploying real infrastructure, proximity to the problem set, partners and talent needed to solve it matters more” than any drawbacks of working in California, Ramamurthy said. “L.A. delivers on all fronts.”
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
Business
Aspiration co-founder sentenced to 14 years for fraud
The co-founder of Aspiration, Joseph Sanberg, was sentenced to 14 years in prison on Monday after defrauding investors and lenders of over $248 million.
The startup, an eco-friendly digital banking company boasting fossil fuel-free investments, carbon offsets for gas purchases, and a debit card with cash-back benefits for shopping at clean companies, was founded by Sanberg and Andrei Cherny. Cherny left the company in 2022 and has not been charged.
Sanberg, an Orange County native, pleaded guilty to wire fraud in October after being arrested in March last year. Aspiration subsequently filed for bankruptcy and liquidated all of its assets by July.
Sanberg and venture capitalist Ibrahim AlHusseini, who also faces charges, together forged a series of bank statements in order to obtain loans. From 2020 to 2021, the pair forged AlHusseini’s bank statements to show millions of dollars in assets in order to obtain millions of dollars from lenders.
Additionally, they forged a letter from their audit committee stating that $250 million in funds were available, when in reality Aspiration had less than $1 million. The amount of loans defrauded exceeded $248 million.
In 2021, Sanberg artificially inflated Aspiration’s 2021 revenue by $44 million by recruiting 27 fake customers to sign letters of intent pledging tens of thousands of dollars per month for tree planting services. Sanberg himself funded the contracts and used the inflated revenue numbers to obtain more loans.
The charges sparked an NBA investigation into salary cap allegations due to Aspiration’s connections with Clippers owner Steve Ballmer.
Ballmer personally invested $60 million in Aspiration, all of which was lost. He is now the target of a civil lawsuit alleging his participation in the scheme. Ballmer denies the allegations.
The team announced a $300-million sponsorship deal with Aspiration, and Clippers player Kawhi Leonard signed a four-year, $28-million marketing contract with the company, which reportedly performed no duties. The issue has raised concerns about how players are circumventing the NBA’s salary cap.
The team lost the $300-million sponsorship deal and an additional $20 million paid for carbon offset purchases.
Business
Monterey Park takes landmark vote on banning data centers
Residents in the city of Monterey Park will be the first in the nation to vote on a permanent ban on data centers Tuesday.
If approved, Measure NDC would prohibit data centers within the city limits and could only be overturned by another vote.
Yard signs saying “No Data Center” in English and Chinese with images of dragons line sidewalks in the San Gabriel Valley city.
As a wave of data center opposition sweeps the country, numerous towns and counties across the U.S. have instituted temporary moratoria and other restrictions on the facilities. But only a handful have instituted indefinite bans, and just four other towns have sent related matters to the ballot.
Supporters are hoping the vote will set a precedent for the rest of the region, where residents are fighting proposals in Vernon and City of Industry.
“This is about as permanent a ban as we can get,” said Steven Kung, co-founder of the group No Data Center Monterey Park. “Winning Measure NDC would send a huge message to the rest of the San Gabriel Valley about how residents don’t want data centers.”
The ballot measure emerged from the fight against a 247,000-square-foot center proposed in 2024 by the Australian-owned investment firm HMC StratCap for a residential area in Monterey Park.
The facility would have sat less than 500 feet away from the nearest home and used three times the electricity of the 60,000-person, predominantly Asian American city.
While the developer touted the potential for jobs and tax revenue, residents expressed concerns about noise and air pollution, rising electricity rates and a potential to lower property values.
The company pulled its plans in late March following public outcry and a March 4 city council vote to extend a temporary data center moratorium and place a ban on Tuesday’s ballot.
In a letter to the city council, HMC StratCap said it would pursue a different use for the land and would not engage in a ballot measure fight.
The city council later banned data centers indefinitely, the first in California to do so, said Mayor Elizabeth Yang. But she’s still been out campaigning for the measure with all four other council members.
“If a council puts in an ordinance, a future council can reverse it too,” said Yang. “With the ballot measure, unbanning it is a lot harder because you need the entire city to vote on it.”
The measure proposes the ban “to protect air quality, drinking water resources, and public health” and “prevent impacts to electricity and water rates.”
While California places third in the country for existing data centers with about 300 facilities, it hasn’t been a hot spot in the recent AI-driven data center boom. High electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in Virginia, Texas, Georgia, Illinois or Arizona.
“Most of California’s data centers are small by today’s standards,” said Shaolei Ren, an engineering professor at UC Riverside who studies how to reduce the environmental impacts of data centers. “Ten years ago, they would be medium-sized, but the power demand for new AI data centers has increased a lot.”
The average operating data center demands 45 megawatts, according to the Washington Post, while the average planned one would draw 430 MW. The one proposed for Monterey Park would have required about 50 MW at peak demand.
As proposals crop up in SoCal, they’re met with fierce opposition. Montebello, El Monte and Baldwin Park have all enacted temporary moratoria, and Alhambra recently banned data centers as part of a zoning code update. City of Industry, Vernon, City of Commerce and Santa Fe Springs are moving in the other direction, trying to court developers and streamline data center approvals. Community groups are fighting that.
Outside the San Gabriel Valley, residents of Coachella and Imperial County are showing up in droves to protest local proposals.
Matthew Shaw, a volunteer with the Coalition for Responsible Data Center Development, who recently published a report on opposition to AI data centers, said a vote to ban them in Monterey Park “would lead to copycats, partially because so many groups are just opposed to any data center development at all.”
While there is no formal opposition to Measure NDC, some building trades like Ironworker Local 433 supported the Monterey Park data center when it was still live before city council. Those in the data center industry are lamenting the state of public opinion.
“These are multi-billion-dollar assets that are built by multi-trillion-dollar companies. These things will get done,” said Mehdi Paryavi, chairman of the International Data Center Authority. “My biggest problem is that our industry does not invest enough in community engagement.”
Paryavi said towns that seek to limit data centers are missing out on thousands of jobs generated by data center construction, operations and customers, as well as faster artificial intelligence speeds and better performance.
Kung said local community organizers are “looking at the empirical evidence” and seeing a ban as a win.
“We’ve never seen a city that embraces a data center and is like, ‘Look how our quality of life has increased, look how all the revenue has gone into citywide improvements,’” he said. “That just doesn’t exist.”
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