Batteries power a data center near Reno, Nevada. Courtesy of Redwood Materials
Across the U.S., tech companies have courted backlash for using polluting gas generators to power massive new data centers. But energy industry data shows that in addition to building out natural gas, firms are adding huge amounts of battery storage.
The energy demands of data centers are so great that large projects may need approval from regulators before connecting to the power grid. But instead of waiting for that approval, tech companies keen to build the infrastructure for A.I. are often building gas generators on site. By one estimate, more than 100 gigawatts of onsite gas power, the rough equivalent of 100 large gas power plants, is planned for data centers across the U.S.
To take full advantage of those gas generators, some companies are installing large lithium-ion batteries alongside, according to a new report from the Solar Energy Industries Association and Benchmark Mineral Intelligence. Batteries are also being employed in tandem with renewable energy.
The report finds that data centers accounted for 5 of the nearly 31 gigawatt-hours of battery capacity installed nationally in the first half of this year. Further, data centers accounted for 75 percent of the capacity installed at commercial or industrial sites. Looking ahead, analysts project that data center demand for batteries will grow fivefold by the end of this decade.
In some places, the A.I. boom is also spurring installations of home batteries, as data centers obtain permission to connect to the grid by funding the installation of batteries in nearby homes. Under such programs, homeowners agree to discharge their batteries to the grid as needed to meet spikes in demand. Analysts say that public outcry over the data center boom may push companies to fund home battery installations.
In a similar vein, some companies are looking to meet the energy needs of data centers by providing rooftop solar to surrounding households or paying to weatherize homes to curb power demand from heating and cooling.
New polling from the Yale Program on Climate Change Communication finds that 56 percent of Americans would oppose a new data center in their community, while just 15 percent would approve of one. At the same time, 73 percent of Americans support requiring new data centers to offset their electricity use by installing rooftop solar or weatherizing nearby homes.
In a recent interview with Yale Environment 360, former Energy Department official Jigar Shah said that it may ultimately be cheaper for tech companies to weatherize homes than to install gas turbines on site, to say nothing of the impact on public opinion. “At the end of the day, these [companies] need public permission,” he said. He added, “Figuring out how to gain that permission I think is also something the data centers have to solve.”
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