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Battery storage investment surges as data centers strain US power
Industry observers expect US BESS capacity to keep climbing, with total capacity rising 30% last year to 57.6 gigawatt-hours.
As data center construction accelerates amid worries about whether the US power grid can keep up, investors are increasingly treating battery energy storage as a real estate adjacent asset, according to Bisnow.
The report cited by the outlet expects battery energy storage systems, or BESS, to grow 250% over the next five years. It also said total US battery storage capacity rose 30% last year to 57.6 gigawatt-hours, while sectors such as industrial sites, hospitals, and universities are expected to add storage installations that increase by 39% by 2030.
Brookfield announced a $7B deal to acquire the country’s biggest standalone battery storage developer from Blackstone, a move described as evidence that demand for more power is spilling into new property frontiers. Brookfield is buying Aypa and its 26.5 GW of battery projects in various states of development, and the outlet also noted that Clayco launched a subsidiary focused on industrial-scale batteries that it expects will generate $300M in annual revenue by next year.
BESS sites typically cover an acre or two and can be deployed on site or remotely, Bisnow said. The outlet also reported that commercial owners see benefits such as reducing load demand during peak hours and helping manage energy costs, while state incentive programs from Arizona to Virginia are spurring more interest across the market.