Podcast Summary: "Turning Wasted Renewable Power into AI Compute with Rune"

Podcast: Inevitable (an MCJ podcast)
Host: Cody Simms
Guest: William Layden, Co-founder and CEO of Rune
Release Date: February 17, 2026

Episode Overview

This episode explores the intersection of renewable energy generation and scalable compute infrastructure. Cody Simms interviews William Layden of Rune—a company building modular, plug-and-play microdata centers that tap directly into unused renewable power at solar and wind sites. The conversation unpacks inefficiencies in the current energy-to-data-center pipeline, Rune’s novel "direct DC" approach, the economic dynamics of renewable generation (including "clipping" and "curtailment"), and how Rune is leveraging these inefficiencies starting with Bitcoin mining, with aspirations to scale into broader compute workloads like AI.

Key Discussion Points and Insights

1. What is Rune? (02:13 – 03:15)

• Mission & Product: Rune builds modular, solar- and wind-powered microdata centers called "RELICs" (Renewable Energy Linked Interruptible Compute).
  • Highly compact and efficient: Each RELIC is ~8 ft x 2 ft x 5 ft, and draws 100 kW, weighing ~2,000 lbs.
  • Deployable in 45 minutes; philosophy is "products, not construction projects."
• Deployment Model: Units are dropped at renewable sites (solar/wind) and connect directly to high-voltage DC, bypassing the traditional AC grid.

2. Bypassing the Grid and Traditional Power Flow (04:09 – 09:42)

• Problem with Current Paradigm: Today, power is generated as DC (especially in solar), converted to AC to join the grid, and then reconverted to DC for data centers.
  • William Layden: “Solar produces direct current. Computers run on direct current. But every electron of direct current flows through a multi chain conversion system that was designed for alternating current and designed for really the 20th century … The insight that Rune has is: Why are you transforming DC all the way to AC, going through an incredibly complex process to power compute when you can do DC to DC and view electricity as a native input?” (08:42)
• Rune’s Approach: Tap the “combiner box” directly, keeping the flow in DC, minimizing conversion losses.

3. Clipping and Curtailment: Unlocking Lost Energy (10:09 – 15:57)

• Clipping:
  • Solar inverters are often undersized compared to the total DC panels deployed (e.g., 1.5 units DC into a 1 unit AC inverter), causing “spillage” of unused energy.
  • Most solar asset owners only measure post-inverter AC output, not total DC production, so aren’t even aware of the waste.
  • Memorable Quote:
    "There's basically no solar asset owner that can tell you reliably and continuously their DC output … There’s a hidden power plant behind every single solar power plant. And with Rune, every single solar power plant is a latent data center." (12:10, 13:24)
• Curtailment:
  • Grid signals solar/wind farms to stop producing (for reliability or economic reasons), leading to stranded generation.
  • “The moment that you are likely to produce the most power is the exact moment the grid says turn off, we don’t want your power.” (14:09)

4. Rune VS Batteries (16:13 – 19:59)

• Comparison:
  • Batteries are “anti-network effect”: Each new battery cannibalizes arbitrage opportunities.
  • They are generally AC-side and require significant capital expenditure.
  • Rune’s approach is zero-capex for plant owners, DC-side, and they view scaling compute as a “network effect”: more hardware = more value.
  • William: "If you string together a bunch of computers, ... you're going to drive material and scientific progress. And by the way, that global market for compute is way, way, way harder to saturate than the nodal market in, you know, West Texas." (17:52)

5. Business Model: Starting with Bitcoin as a Beachhead (19:59 – 22:51)

• Why Bitcoin Mining:
  • Provides a guaranteed, permissionless market for compute ("We’ve got an offtaker, they always want that compute, and let’s work on the power stuff." 21:47)
  • Solves the “chicken-and-egg” problem: Prove power producers will work with Rune, then move into other high-value compute markets.
• AI and Future Compute Workloads:
  • The goal is to evolve from Bitcoin (interruptible, batchable) to also serving preemptible AI workloads.
  • Run interruptible, non-time-sensitive processes (e.g., batch simulations, climate models).

6. The Opportunity in Interruptible Compute (22:51 – 26:28)

• Technical Feasibility:

  • Checkpointing allows many workloads to be paused/restarted if price or power availability changes.
  • Cloud services already offer similar “spot/preemptible” instances at large discounts.
  • Future vision: Expand the pool of interruptible compute using stranded renewable power.

• Target Workloads:

  • Batch simulations, climate models, physics calculations, AI inference, etc.
  • William: “...a lot of organizations do that today [...] they're queuing up their workloads to get executed as the compute becomes available.” (26:48)

7. Who is the Customer? (26:54 – 28:05)

• Value Chain:

  • Rune’s primary customer is the power plant. They buy underpriced, stranded electricity and convert it into a more valuable product (compute).
  • Business model: Developer/operator of hardware, not just a hardware supplier.

• Profitability:

  • Takes on deployment/maintenance capex, arbitrages power-vs-compute value, and is incentivized to optimize modularity and deployment cost.

8. Company Background and Milestones (30:44 – 32:51)

• William Layden’s Journey:

  • Background in hydropower asset operation; early clean bitcoin mining pioneer.
  • Experience with Softbank Energy and solar deployments.
  • William: “Solar’s a very different shape… You need a new way to consume that power and a new load to be optimal with that energy source. And that's what Rune is. It's the company I wish I had when I was operating solar power plants.” (31:44)

• Current Stage:

  • Operating on three continents: Texas (solar), Chile (solar), Sweden (wind).
  • Seed stage; investors include Union Square, Lower Carbon Capital, Vestas.

9. Market Vision: "Bring Your Own Power" and Future of Compute (33:26 – 38:20)

• Trends in Compute and Power:
  • Discussion of “BYOP” (bring your own power) for data centers/hyperscalers.
  • William asserts that Rune’s DC-to-DC modular, non-construction approach is the fastest way to deliver compute ready power, without needing new power market structures.
  • William: “Every solar power plant with Rune is a latent data center. So we need to convert those underutilized resources into AI factories.” (36:38)
  • Already operating in the “high voltage DC era,” compatible with emerging DC data center architectures.

Notable Quotes and Moments

• On Clipping and Hidden Opportunity:
  "Basically there’s a hidden power plant behind every single solar power plant. And with Roon, every single solar power plant is a latent data center." – William Layden (13:24)

• On the Inefficiency of Current Energy Flows:
  "...every electron of direct current flows through a multi chain conversion system that was designed for alternating current and designed for really the 20th century..." – William Layden (08:42)

• On Batteries vs. Compute Scaling:
  "...batteries are actually anti-network effect technologies ... every incremental battery you install ... you're going to cannibalize value. ... If you string together a bunch of computers ... you're going to drive material and scientific progress." – William Layden (17:27)

• On Future Market Fit:
  "Today it’s end of January. We just had a major snowstorm. Good luck pouring concrete in 10 degree weather ... We don’t use any concrete. You get a forklift, you plop the RELIC down. It’s up and running in 30 minutes." – William Layden (36:38)

Timestamps for Key Segments

| Topic | Timestamp | |-------|-----------| | Episode Introduction & Rune Overview | 00:00–03:15 | | Physical Product Description | 03:15–05:09 | | Power Flow Today vs. Rune | 07:09–09:42 | | Clipping Explained | 10:09–13:24 | | Curtailment Explained | 14:09–15:57 | | Batteries vs. Rune | 16:13–19:59 | | Bitcoin as Beachhead | 19:59–22:51 | | Interruptible Compute & AI Vision | 22:51–26:28 | | Business Model & Customer | 26:54–28:05 | | Company Backstory & Deployments | 30:44–32:51 | | BYOP & Future of Data+Power | 33:26–38:20 |

Closing Remarks

• Rune is hiring technical staff (power electronics, mechanical, AI/ML engineers).
• William emphasizes Rune as a scalable, flexible, and modular platform for converting wasted renewable power into usable compute infrastructure—starting with Bitcoin mining but moving quickly toward broader AI and HPC workloads.

For more details or to join the Rune team, visit: rune.energy