The artificial intelligence boom has generated enormous conversation about computing power, chip architectures, and model capabilities. But there is a quieter, less glamorous story running in parallel: the energy story. Training large AI models and running inference at scale requires massive, uninterrupted power — and the grid, as it stands today, was not designed for this.
This is where battery energy storage systems (BESS) are becoming a critical piece of infrastructure, not just for utilities and renewable developers, but for the very companies building the AI era. Understanding this intersection is increasingly important for anyone working in either energy or technology markets.
The Scale of the Problem
Data centre electricity use surged through 2025, with major hyperscalers competing for power capacity that simply does not exist in many markets. The International Energy Agency has flagged data centre energy demand as one of the fastest-growing drivers of grid stress globally. AI data centres require 24/7, uninterrupted power — something that intermittent solar and wind generation alone cannot guarantee.
The numbers are striking. Utility-scale battery storage capacity is projected to reach 24.3 GW of new additions in 2026, with a significant share of that demand driven directly by data centre developers seeking grid stability and energy resilience. Battery storage now accounts for 28% of all planned 2026 capacity additions — the second-largest source of new grid infrastructure after solar.
BESS as Critical Data Centre Infrastructure
For hyperscale data centre operators, battery storage serves multiple functions simultaneously. It provides uninterruptible power supply during grid outages or voltage fluctuations — a role traditionally served by diesel generators, but now increasingly filled by BESS at far greater scale and with zero emissions. It enables participation in demand response programmes, where operators can reduce grid draw during peak periods and receive payments for that flexibility. And it allows data centre owners to charge batteries during low-cost, off-peak periods and discharge during expensive peak hours, directly reducing operating costs.
In 2026, the world is expected to add 353.4 GWh of new energy storage capacity — a significant driver of which is AI data centre demand. The commercial and industrial BESS market is forecast to reach USD 21 billion by 2036.
The Investment Signal
The investment community has taken notice. The global commercial and industrial battery energy storage market — the segment most relevant to data centres — is forecast to reach USD 21 billion in value by 2036, roughly five times its current scale. The surge in data centre construction, combined with the parallel rollout of 5G infrastructure and electric vehicle charging networks, is creating multi-layered demand for storage that the market is only beginning to serve.
Battery storage for data centres and commercial industry is now a recognised sub-sector in its own right, with dedicated financing structures, specialist developers, and growing regulatory frameworks to govern it.
The Communication Gap — and the Opportunity
Here is what I observe from a marketing and commercial strategy perspective: there is still a significant communication gap between battery storage capabilities and buyer understanding in the data centre sector. Many data centre operators understand power infrastructure in terms of traditional UPS systems and generator backup. The case for BESS — combining reliability, cost reduction, revenue potential, and sustainability — requires a different kind of storytelling.
Battery storage developers who can translate technical performance into clear business value propositions, who can speak to CFOs about IRR and operational savings as fluently as they speak to grid operators about MW and MWh, will win the commercial contracts that are already being negotiated today.
My Take
The AI-BESS connection is one of the most compelling market dynamics I follow. It is a case study in how adjacent sectors collide to create new commercial categories. For professionals positioned at the intersection of energy storage and commercial strategy, the pipeline of opportunity being generated by the AI build-out is substantial, sustained, and just getting started.
Ayushi Nema writes about battery storage, clean energy markets, and the intersection of marketing and the energy transition. Follow her at ayushinemaofficial.com
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