Artificial intelligence, cloud growth, and hyperscale computing are changing the economics of data center development. For many operators, the limiting factor is no longer only land, capital, or customer demand — it is access to reliable, scalable power. As interconnection timelines lengthen and grid capacity becomes more constrained, battery energy storage systems (BESS) are shifting from a niche resiliency play to becoming one of the few levers AI-driven facility operators can pull to bring load online, control cost volatility, and improve data center economics.
BESS can also help data center owners and developers manage peak demand, monetize demand response, and reduce reliance on traditional backup generation. The opportunity is especially relevant for hyperscale and AI-driven facilities, where power density, uptime expectations, and time-to-power are increasingly central to project feasibility.
Recent market data reinforces the momentum. The International Energy Agency reported that global battery storage additions reached 108 GW in 2025, up 40% from 2024, while battery-based uninterruptible power supply capacity — used primarily in data centers — also grew significantly. At the same time, industry reporting indicates that hyperscale developers are increasingly incorporating battery storage and alternative power architectures into new data center designs as they respond to utility constraints, demand-response requirements, and capital efficiency pressures.
For companies evaluating new data center investments, battery storage should be considered as part of a broader energy, tax, and operating strategy — not simply as a backup power decision. Project economics, federal and state incentives, permitting, interconnection, system design, emissions goals, and end-of-life obligations can all influence whether storage creates value and how that value is realized.
BDO’s overview of battery storage as a business energy solution provides additional context on the market forces driving adoption, the differences between behind-the-meter and utility-scale storage, available incentives, and circularity considerations. For data center owners, operators, investors, and developers, the key takeaway is clear: Battery storage is no longer a resiliency add-on. It’s becoming a core lever for performance, costs, and growth.
To learn more, read the full battery storage overview and connect with BDO to discuss how storage, incentives, and energy strategy may affect your next data center investment or expansion.