- Batteries could become an integral part of the data center power equation in the coming years
- They're occasionally used in place of generators for backup power today, but they can also be used for peak shaving and to generate revenue
- Batteries will likely factor more prominently in data center designs as microgrid deployments pick up in response to AI power demand
Battery Energy Storage Systems (BESS) could be just what data centers need to overcome key energy challenges facing the industry.
These systems, which are large enough to power a data center for an hour or two, can be recharged in several ways, using energy from the grid or renewable sources, Schneider Electric noted in a recent white paper.
That means data centers can buy energy from the grid when it’s cheap and use it themselves for peak shaving or sell it back to the grid when prices rise, thereby turning a cost into a revenue-generating asset. And BESS has the potential to make renewables into a more serious supplier of data center power.
While they don’t generate power on their own, BESS certainly factor into the power supply mix for data centers and are likely to factor more prominently as operators explore the use of microgrids for behind-the-meter power generation and storage.
Until recently, the costs and limitations of older lead-acid battery tech have been a limiting factor in BESS adoption. But the tide is starting to turn.
According to the U.S. Energy Information Administration, the amount of utility-scale battery power capacity in the country jumped 66% in 2024 to 26 gigawatts. That number could jump to more than 45 GW this year, making battery storage one of the leading sources of generating capacity additions in the country for 2025.
While utilities are behind many battery deployments, data centers are also starting to get on board.
Microsoft, for instance, is using SAFT’s BESS at its data center facility in Stackbo, Sweden. Additionally, Meta collaborated with Orsted and the Salt River Project on a solar-plus-BESS deployment to help power its data center in Mesa, Arizona. That system went live late last year.
And such systems could soon become selling points for data center developments. Case in point: one data center site under development in Texas is advertised as offering 1 GW of electrical capacity with 1 GW of battery capacity to match.
Vendors are responding to the rise in demand.
Leading data center supply vendor Schneider Electric has a lithium-ion BESS lineup with configurations ranging from 60kW to 2MW of capacity. Meanwhile, Chinese company CATL debuted a 9MWh energy storage system last month to meet the needs of industrial users, such as data centers. ZincFive is also targeting centers with its nickel-zinc battery offerings.