Is BESS the key to data center energy demand?
Briefly

Is BESS the key to data center energy demand?
"As data center power density and uptime expectations rise, it's predicted that we'll see a rapid growth in the use of battery energy storage systems (BESS) in the next three to five years. While there are utilities working on flexible load tariffs for which data center operators could use storage when called upon instead of curtailing, many are turning to off-grid solutions because interconnection for new loads is taking too long, says Allison Weis, Global Head of Energy Storage, Power, and Renewables at Wood Mackenzie."
"For on-site power generation, liquid natural gas (LNG) is expected to be the power source of choice in the short-term. However, operators are also implementing geothermal, wind, and solar solutions. Then there's small modular reactors (SMRs), which may come out top in the long-term. The variability associated with renewable sources is a key driver for BESS, as fluctuations will need to be balanced. Therefore, solar and wind need to be paired with storage to increase their availability throughout the day."
"Batteries are well suited for shifting energy across short timeframes - hours rather than days. That makes them effective at absorbing excess renewable output,"
As data center power density and uptime expectations rise, rapid growth in battery energy storage systems (BESS) is expected within three to five years. Utilities are developing flexible load tariffs, but slow interconnection timelines push many operators toward off-grid solutions. Short-term on-site generation will favor LNG, with geothermal, wind, and solar also deployed and small modular reactors (SMRs) considered for the long term. Renewable variability drives the need for storage to balance fluctuations and extend availability. Batteries excel at shifting energy across hours, absorbing excess renewable output, reducing curtailment and fast-ramping requirements. BESS supports resilience, peak shaving, sustainability, and operational continuity.
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