Battery Storage Can Unlock
Opportunities for Data Centers
Data centers are the backbone of the digital economy, supporting everything from cloud computing and social media to financial transactions and e-commerce. Given their critical role, data centers require highly reliable power solutions that ensure their servers remain operational. Power failures affecting data centers can be catastrophic, both in terms of cost and potential damage to companies’ reputations, making continuous uptime a necessity. By helping low-cost, readily available assets deliver reliable power, battery energy storage plays a unique and important role in expanding access to power when and where data centers need it.
Rising Data Center Demand for Readily Available Reliable Power
With the world becoming increasingly digital, the power needs of data centers continue to rise. In 2023, data centers in the United States consumed about 176 TWh of electricity (about 4.4% of total U.S. electricity) and they are expected to consume between 325 to 580 TWh of electricity (approximately 6.7 to 12% of total U.S. electricity) by 2028.1 Concurrently, demand and competition for power continues to rise across various other sectors nationwide. As more companies move to secure vast amounts of reliable power to meet their ever-growing near-term power needs, low-cost, fast-to-deploy options provide a straightforward answer that, when paired with battery storage, offer unique benefits.
The Benefits of Battery Energy Storage
1. Enhanced Reliability
Battery energy storage plays an essential role by managing the supply and demand of power. Intermittency can lead to periods of surplus energy and periods of energy shortage. By capturing energy during periods of low demand and storing excess energy for use during times of intermittent generation, batteries provide a reliable source of power to support continuous operations.
2. Energy Density and Scalability
Modern battery systems offer high energy density, which means they can store more energy in a smaller footprint. This is particularly important for data centers with limited space but high energy requirements. Additionally, these systems are scalable, so your data center can expand its power backup systems efficiently as its facilities grow.
3. Energy Cost Savings
Data centers often face high electricity costs during peak demand periods. Battery energy storage can be used for peak shaving, drawing power from batteries during peak times to reduce dependency on the grid and lower energy costs. Moreover, these systems can participate in demand response programs by storing energy when the price of electricity is low and delivering it back to the grid during high demand in exchange for financial incentives.
Proven Power Solutions, When and Where You Need Them
To maximize the benefits of an investment in battery storage, it's important for data centers owners and operators to be informed about potential applications and use cases, technological advancements, and variations in energy storage regulations across regions. Working with an experienced leader in battery storage can help your company make informed decisions that produce the results your company needs.
With NextEra Energy Resources you can leverage the expertise of a world leader in battery energy storage. Our near-term solutions come backed by the scale and cutting-edge technology to meet diverse energy needs across the nation. We are experts in energy development, with over 3,000 MW of battery energy storage in operation as of the end of 2024 and can deliver speed-to-market with our backlog of 7.1 GW of storage in development.
Tags: Insights | Trends | Battery Storage | Energy Storage | Data Centers | Power Demand