Why Do Data Centers Need Battery Storage?
Demand continues to rapidly expand for connected devices, streaming video, cloud services, and AI-enabled technologies. Despite productivity gains realized through these solutions, the United States’ electricity grid is already feeling the impact.
According to a release published by the U.S. Department of Energy in 2024, data center load growth tripled during the past decade and is projected to double or triple again by 2028. That means data centers could consume up to 12% of the nation’s electricity within five years.
To keep pace with demand, technology companies are faced with two basic options: rely primarily on electricity from the grid — or get creative. Let’s explore why battery storage is an emerging “creative” option.
Battery Storage & Data Centers
The Grid Integration Toolkit from the National Renewable Energy Laboratory (NREL) defines battery storage as, "technology that enables power system operators and utilities to store energy for later.” More specifically, the toolkit explains that a battery energy storage system (abbreviated as “BESS”) is an "electrochemical device that charges (or collects energy) from the grid or a power plant and then discharges that energy at a later time to provide electricity or other grid services when needed."
Utility companies were early adopters of battery storage systems, but a growing number of private sector technology companies have embraced battery storage, too. Here are a few reasons why:
Avoiding Data Center Downtime: Data centers often guarantee uptime for their web servers and applications, especially on commercial contracts. Battery storage provides a “fail safe” solution when outages occur, thereby reducing business interruptions for customers and, in turn, lost revenue.
Energy Source Diversification: Relying exclusively on grid-sourced electricity poses strategic and cost-related risks for organizations involved in data storage, cloud computing, cryptocurrency mining, and other resource-intensive activities. As a result, it’s not uncommon for tech firms to develop ancillary energy sources, ranging from natural gas generation to solar and battery storage.
Alignment with Renewable Initiatives: Leveraging alternative forms of energy like solar and wind mitigates certain risks but creates new challenges for tech companies. After all, the sun’s rays only shine during the day, and wind speeds are fairly unpredictable. Pairing battery storage with renewable energy sources usually delivers a more desirable return on investment.
Battery Storage Land Support for Data Centers
New Era Land Services LLC is a land company that’s experienced supporting the unique needs of battery storage projects. Contact us for help with landowner outreach, lease acquisition, title research, and our other on-the-ground services for battery storage.