Batteries Undercut Gas for Data-Centre Power
New analysis suggests four-hour battery storage is now cheaper than open-cycle gas turbines across surveyed markets.
AI data centres are forcing developers to rethink how they handle power shortages and peak demand.
What happened
New industry analysis found that four-hour battery storage is now cheaper than open-cycle gas turbines across the markets surveyed.
At the same time, strong demand has pushed turbine prices higher and extended delivery timelines.
Why it matters
Data-centre developers have increasingly looked at on-site gas generation as a way to bypass grid bottlenecks.
Battery economics challenge that approach for short-duration demand peaks.
Batteries cannot replace firm generation in every scenario, but they can absorb short spikes, shift electricity use and reduce reliance on expensive peaking equipment.
The bigger picture
AI infrastructure is creating a new energy technology market around flexibility.
The winners may not be limited to companies producing more electricity.
Storage, demand response and power-management systems can all become valuable by helping data centres use available grid capacity more efficiently.