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The scramble to find enough power for artificial intelligence has data center operators looking for any solution. An\u00a0unexpected one taking root\u00a0pairs batteries \u2014 long seen as a key to adding more renewables \u2014 with fossil fuels.<\/p>\n
BloombergNEF has tracked 4.9 gigawatts of energy storage announcements that are co-located with on-site fossil fuel generation at data centers. That\u2019s about 32% of announced global on-site data center battery capacity. The sites include some of the largest AI data center complexes under development, such as Elon Musk\u2019s Colossus supercomputer in Memphis, Tennessee, and the combo has become so popular that companies such as Caterpillar and GE Vernova have announced products or partnerships pairing energy storage with gas generation.<\/p>\n
Batteries are a linchpin for unlocking solar and wind energy\u2019s full potential by soaking up excess green energy and then discharging it when the wind isn\u2019t blowing, or the sun isn\u2019t shining. However, the steep drop in battery costs is now allowing energy-storage technology to be deployed in conjunction with natural gas to provide more reliable power for data centers.<\/p>\n
While gas can provide round-the-clock power, not all plants work 24\/7. For many behind-the-meter facilities, data centers are choosing gas turbines that run for shorter periods and don\u2019t ramp up quickly enough to meet computing needs. That has hyperscalers turning to batteries, which can rapidly discharge power, to fill these gaps. The batteries also help prevent damage to gas turbines that aren\u2019t designed to be used for frequent\u00a0 ramping cycles.<\/p>\n
\u201cI assumed batteries would be a tool for decarbonisation,\u201d said Michael Thomas, founder of clean energy research firm Cleanview who has also been tracking the rise of energy storage paired with gas. \u201cWhat we are learning in this new AI era is that they can also be used as a tool for fossil fuel power because their technological advantages make it possible to build and operate an off-grid power plant.\u201d<\/p>\n
While data centers now face\u00a0an average of four years to get power from the grid, they are turning to gas generators paired with energy storage as a bridge source of energy, said Allison Weis, Wood Mackenzie\u2019s global head of energy storage. As\u00a0long interconnection queues delay requests for utility-connected power, data center developers are finding it faster to bring their own generation.<\/p>\n
Data centers also have sharp demand spikes driven by computing-intensive tasks, such as training models. Batteries paired with gas can help provide power rapidly enough to ensure smooth operations.<\/p>\n
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Some of the largest US data center projects are deploying batteries alongside gas generators.\u00a0 At xAI\u2019s Colossus facility, rows of Tesla Megapacks are being installed next to gas turbines as part of a 1.2 gigawatt off-grid power plant that will supply the massive data center. In West Texas, Pacifico Energy\u2019s GW Ranch off-grid data center will have 1.8 gigawatts of battery storage installed next to 7.65 gigawatts of gas-fired power generation.<\/p>\n
Williams Cos, a natural gas pipeline operator, plans to install Tesla batteries along with natural gas-fueled power plants it is building for several data center projects. \u201cBatteries really help support the turbines and give us the 99.999% reliability,\u201d said Executive Vice President Rob Wingo at the S&P Global Power Markets Conference in Las Vegas last week.<\/p>\n
Using natural gas will add more planet-warming emissions into the atmosphere while also contributing to local air pollution. The West Texas project recently received the largest air pollution permit ever granted in the US, while Musk\u2019s Memphis project has faced multiple lawsuits arguing the gas turbines are worsening air quality in historically Black communities.<\/p>\n
Pacifico Energy and xAI didn\u2019t respond to requests for comment on the environmental impact of their projects. A Williams spokesperson touted the use of \u201cmodern, high\u2011efficiency natural\u2011gas turbines with advanced emissions controls and continuous monitoring\u201d at its off-grid sites. \u201cPairing gas generation with batteries improves how those generators operate \u2014 smoothing load swings and reducing start\u2011ups and ramping, which are the most emissions\u2011intensive conditions,\u201d the spokesperson\u00a0wrote.<\/p>\n
Utilities are also building more energy storage facilities on the grid next to power plants \u201cto help maximise the megawatts\u201d and support data center load growth, said Noah Roberts, executive director of the US Energy Storage Coalition. Large batteries help utilities make the most of power that would otherwise be wasted and also help meet power demand while also lowering costs, he said.<\/p>\n
Roberts pointed to the example of NIPSCO Generation, a utility in northern Indiana that is building two 1.3 gigawatt gas-fired power plants and an energy storage system with 400 megawatts of capacity to serve planned Amazon data centers.<\/p>\n
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And in Michigan, utility DTE Electric Co has plans to build six energy storage systems to complement a 1.4 gigawatt data center for Oracle Corp. Doing so will help the utility boost the capacity of all generating resources by 25%, he said. Roberts called that project \u201ca great example of where energy storage is completely agnostic to the type of energy that is providing electrons to the grid.\u201d<\/p>\n
Michigan regulators recently approved that project despite a challenge from the state\u2019s attorney general over customer cost concerns.<\/p>\n
Fluence Energy, a global energy storage provider, is in talks with large natural gas companies to supply batteries that can help get data centers up and running before turbines arrive, said Chief Customer Officer Jeff Monday.<\/p>\n
\u201cWe are seeing massive demand coming out of the hyperscalers and data center operators,\u201d Monday said, noting that projects pairing batteries with gas generation are part of the fastest-growing part of the company\u2019s energy storage pipeline.<\/p>\n
Coupling batteries with natural gas also promises to extend the life and usefulness of fossil fuel plants. That is setting batteries up for a dual role as an enabler to putting more green energy on the grid and delaying the phase-out of fossil fuels.<\/p>\n
\u201cThere is nothing about batteries that are inherently clean,\u201d said Thomas. \u201cBatteries are just a technology.\u201d<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Data #centers #finding #surprising #deploy #batteries<\/p>\n","protected":false},"excerpt":{"rendered":"
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