NEMA: Data Centers Use Batteries, Microgrids for Power

NEMA report says data centers are using on-site batteries and microgrids to get power faster and ensure resilience amid rising demand and grid delays.

A new report from the National Electrical Manufacturers Association (NEMA) highlights a strategic shift in how data centers secure power, emphasizing the use of on-site battery energy storage systems (BESS) and microgrids to achieve faster grid interconnection and ensure operational resilience. With soaring demand from AI and cloud computing overwhelming traditional utility timelines, operators are increasingly willing to pay a premium for technologies that decouple their power availability from protracted grid upgrade processes.

The analysis finds that battery systems are now "increasingly critical" infrastructure, allowing data centers to interconnect to the grid at a lower initial power capacity commitment. By providing immediate load balancing and backup power, batteries enable facilities to begin operations while utilities complete larger, longer-term transmission upgrades. This "interim power" strategy can slash wait times from several years to just months. Furthermore, advanced microgrids that integrate solar, batteries, and natural gas generators are providing a level of energy autonomy and price stability attractive to hyperscalers.

"Grid interconnection queues are the single biggest bottleneck to data center expansion," stated a NEMA industry director. "Investing in on-site storage and generation is no longer just about backup; it's a commercial necessity to accelerate time-to-market." The report notes this trend is driving massive investment in the BESS sector and fostering new partnerships between data center developers, energy equipment manufacturers, and independent power producers.

While the approach requires higher upfront capital, operators view it as a competitive advantage in securing desirable locations and guaranteeing uptime for critical AI workloads. The move also aligns with corporate sustainability goals when paired with renewable generation. As power demands continue to escalate, the integration of distributed energy resources is set to redefine the data center's relationship with the electrical grid.