The power requirements of artificial intelligence have triggered many urgent conversations in the energy sector, but one message is truly compelling: U.S. data centers are reshaping the global market for energy storage. Analysts now forecast a steep multiyear rise in battery deployment, driven by the collision between AI’s soaring compute appetite and the limitations of the electrical grid.
That demand spike, fueled by hyperscale facilities racing to expand capacity, was outlined by UBS Securities, which expects global energy storage installations to surge at an annual clip of roughly 40% by 2026. The firm’s view reflects a growing trend: AI workloads push data centers to run hotter and longer, intensifying pressure on a grid already adapting to the variability of solar and wind power. Batteries become the buffer that makes this possible.
For the U.S., the growth curve is heightened by an ongoing buildout of AI infrastructure. UBS emphasized that while the country shows exceptional appetite for AI facilities, its biggest constraint is the availability of electricity. The grid’s uneven ability to deliver reliable power has made onsite energy storage an operational necessity.
Global trade relations adds complexity. Chinese firms currently hold a notable share of the U.S. battery market, but recent federal restrictions on foreign-controlled energy companies introduce uncertainty. Even so, energy storage vendors in China and across emerging markets are benefiting from rapid local growth, where demand is expanding at rates that outpace even the U.S. market.
AI’s Outsize Power Appetite
The broader backdrop is an AI infrastructure boom that is reshaping global electricity forecasts. Industry analysts estimate that capital spending on AI data centers could reach several trillion dollars per year by the decade’s end. With that buildout comes an extraordinary power requirement: projected demand could add more than 100 gigawatts to the U.S. grid alone.
For context, that’s roughly a tenth of America’s current installed capacity. And AI is only part of the story. The electrification of heavy industry, coupled with manufacturing reshoring, continues to push consumption upward. Developing economies are adding yet another layer of demand. The International Energy Agency projects global electricity usage will grow at a pace equivalent to adding Japan’s consumption every year.
These pressures are already bubbling up in regional markets. In the U.S. mid-Atlantic region, energy analysts point to data centers as a key factor behind recent jumps in capacity prices, which in turn boost residential rates. Analysts note that servers account for the majority of facility-level energy draw, with cooling systems close behind.
A Stressed Power Grid
One consequence of these grid strains is a shift in where, and how, new data centers are sited. A striking example is Texas, where a recently adopted reliability rule allows utilities to cut power to large industrial users during emergencies. For AI operators obligated to maintain strict uptime, the mere possibility of a sudden shutoff is untenable.
This energy-scarce environment has encouraged operators to build self-reliant facilities capable of riding through outages. Large battery banks are becoming a core part of these architectures, supporting short bursts of stand-alone operation when the grid is under stress. Some companies are designing microgrids that pair storage with onsite generation, in part to bypass long delays in interconnection queues.
A New Energy Market
What’s emerging is a data center industry forced into a more active role in energy planning. Storage is no longer a niche accessory, it’s a prerequisite for keeping pace with AI’s growth. And as both power consumption and policy pressures rise, the sector is likely to embed even more storage directly into facility design.
The next several years will test how well markets and regulators can keep up. But one point is increasingly clear: AI’s expansion isn’t just transforming computing. It’s remapping the energy market, one battery stack at a time.
