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How BESS Could Unlock a Sustainable Future for Data CentersHow BESS Could Unlock a Sustainable Future for Data Centers
As data centers face soaring power demands and sustainability challenges, battery energy storage systems (BESS) offer a key solution to a greener future.
5 Min Read
Battery energy storage systems (BESS) can help ensure reliable uptime for data centers while supporting sustainability goals.Image: Alamy
Battery energy storage systems (BESS) are emerging as a key technology to help data centers navigate the twin challenges of soaring power demand and sustainability. By storing and dispatching electricity as needed, BESS can stabilize energy supply, reduce reliance on fossil-fuel-based backup power, and enable greater use of renewables – making it a potentially critical tool in the industry’s decarbonization efforts.
Amid surging demand for AI-driven compute, industrial production, and electrified transport, global electricity consumption is rising at its fastest pace in years. According to the International Energy Agency (IEA), power demand is set to grow nearly 4% annually through 2027 – equivalent to adding Japan’s total electricity consumption to the grid each year.
Data centers are responsible for a growing share of global power use, and this trajectory raises important sustainability challenges. AI data centers alone are projected to see a 44.7% compound annual growth rate in energy consumption, reaching 146.2 TWh by 2027, further straining grid capacity. Some hyperscale facilities now consume as much power annually as hundreds of thousands of electric vehicles.
With these pressures mounting, BESS is gaining traction as a potential solution. This article explores how BESS is being deployed across the data center industry and what major players are doing to drive its adoption.
What is BESS?
Battery energy storage systems store and release electricity as required, enhancing power systems’ efficiency, stability, and flexibility. This capability is crucial for energy-intensive environments like data centers, where the need for sustainable and reliable power grows.
Using advanced energy management systems to improve efficiency, BESS helps mitigate energy losses from voltage mismatches between power grids and devices.
The global energy storage market is expanding rapidly, with Wood McKenzie projecting that it could reach 159 GW/358 GWh by the end of 2024. Looking ahead, 926 GW/2,789 GWh will be added between 2024 and 2033. This reflects a rise in the adoption of technologies, including BESS, as data center providers continue to find ways to meet contemporary energy demands in a sustainable manner.
“Part of what makes BESS attractive for data centers is the increased flexibility and stability it can offer if leveraged well,” explains Howard Porter, energy-efficiency expert and market strategy board member at the International Electrotechnical Commission (IEC). “They can help provide backup power during outages and contribute to grid stability in case of frequency and voltage variations.”
Aerial view of the Wandoan South Battery Energy Storage System in Queensland, Australia. Image: Alamy
BESS Benefits for Data Centers
BESS offers transformative benefits for data centers, tackling the twin challenges of rising energy demands and the need for sustainability. By storing excess energy and supplying it during peak demand, battery storage systems can help ensure uninterrupted operations while reducing reliance on the grid. These capabilities make BESS “a cornerstone for integrating renewable energy,” according to Martin Rheault, vice president at BESS provider EVLO.
The ability of BESS to integrate renewable energy can help advance data center sustainability and resilience. For example, Rheault notes that EVLO’s 300 MWh BESS deployment in Virginia “balances AI-driven energy demands with the state’s renewable energy goals, ensuring a cleaner and more resilient power system.”
For Udi Daon, CEO of energy hardware supplier Daana, a key advantage of BESS in data centers is its ability to create “a high voltage distribution system which allows higher efficiency in the distribution itself, as well as controls the output at the load (where the storage meets the use of the energy – grid, motor or otherwise).”
“We need to store more energy, do it more efficiently, and lower the cost,” Daon adds.
Challenges in BESS Adoption
Despite the numerous benefits of battery energy storage systems, challenges remain. One of the most significant obstacles to adoption is the steep upfront cost. While BESS offers long-term savings, the initial investment can be prohibitive for some operators.
There’s also the problem of scalability, especially for hyperscale data centers. Advanced modular designs and chemistry-agnostic systems like those developed by Daanaa aim to address these challenges, but large-scale adoption is still in its early stages.
Another bottleneck is regulatory inconsistency. Organizations like the IEC, however, have published helpful standards like the technical specification IEC TS 62786-3:2023, which covers the principles and technical requirements for the interconnection of distributed BESS to distribution networks.
“Standards and internationally agreed technical specifications can be great tools in accelerating the pace of harnessing technologies and their widespread adoption,” says Porter. “They provide an excellent starting point, with best practices from across the world to make it easier for industries wanting to leverage technologies.
“The same applies to the work IEC is doing with BESS. The technical guidelines it specifies will ensure safe, efficient ways of integrating BESS for various applications.”
Read more of the latest data center energy and power supply news
Future-Proofing Data Center Power Needs
Hitachi Energy’s vision for sustainable data centers notes that “data center owners, managers, and operators need to manage reliable power in agile, sustainable, and future-proof ways.”
Battery energy storage systems provide an effective way for the data center industry to achieve that, enabling the advancement of environmental, social, and governance (ESG) objectives.
The technology offers a workable and scalable way for companies to reconcile the growing pressure to lower their carbon footprints and switch to cleaner energy sources. With BESS, for example, data centers may reduce their dependence on fossil fuels and match their operations with global sustainability goals by integrating renewable energy sources like wind and solar.
Adopting BESS shows a dedication to social responsibility, environmental stewardship, and sound governance procedures from an ESG standpoint. In addition to future-proofing their operations, companies adopting BESS establish themselves as leaders in the global shift to resilient, sustainable energy systems.
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