[Part 1 of 2]
Summary:
As AI adoption accelerates across industries, its impact on energy demand, especially within hyperscale data centers, is becoming a critical infrastructure challenge. At CES 2026, Stryten Energy convened experts from policy, research, utilities, and battery technology to discuss how AI, electrification, and grid stability intersect, and why battery energy storage has become essential rather than optional.
Key Points of Discussion:
- AI is reshaping electricity demand and driving multi‑gigawatt data center expansion
- Battery storage has become mission‑critical infrastructure, not just backup
- The widening gap between data center load growth and utility buildout timelines
- How on‑site energy storage can operate as a shared resource for the grid
- Regulatory, interconnection, and emissions barriers that slow deployment
- The potential for data centers to supply excess power back to the grid
Meet the Panelists:
- Moderator: Scott Childers, Vice President, Essential Power, Stryten Energy
- John A. Howes, Principal, Redland Energy Group
- Frank Sharp, Technical Director, EPRI
- Travis Torrey, Chief Technical Officer, Storion Energy
- Erik Spoerke, Senior Analytics Advisor, Energy Storage Division, DOE
Highlights from the Discussion:
How Is AI Growth Driving Unprecedented Electricity Demand?
AI expansion, EV charging and broader electrification are increasing electricity demand faster than power infrastructure can scale. Grid stability is becoming urgent, with current U.S. consumption at roughly four trillion kilowatt‑hours and the potential to double within 15 years.
The core challenge is reliability. It’s not enough to simply have available power; electricity must remain uninterrupted and consistently delivered when needed.
Energy storage is essential for maintaining round‑the‑clock reliability. Batteries and other storage technologies help ensure power is available during fluctuations or shortages.
AI data centers are reaching extremely large power levels in the 30 to 50 megawatts range, comparable to industrial facilities like steel mills. Even sub‑cycle fluctuations can cause operational issues, making power quality a top priority.
As a result, long-duration (6+ hours) storage is evolving from a backup resource to an active part of grid operations. Batteries are now increasingly used to support power quality in addition to storing energy.
Is There a Technology That Balances Reliability, Delivery and Quality?
Most batteries were originally designed for low-cycle, solar‑paired systems, not for the constant fluctuations seen in data centers. This mismatch creates challenges as demand patterns shift.
Oversizing data‑center infrastructure also creates significant waste. For example, installing a 30‑ to 50‑megawatt facility can result in roughly 30 megawatts of unused capacity.
Flow batteries offer a promising solution because their active materials don’t degrade from frequent cycling. Their durability and fast response capabilities make them well‑suited for handling rapid load swings driven by AI applications.
Is the Federal Government Prioritizing AI Deployment or Grid Reliability?
The government is heavily invested in AI development, marking one of the largest federal technology initiatives since the Apollo era. At the same time, ensuring reliable and affordable power remains a core priority. In fact, the Genesis Mission, which is a national initiative led by the Department of Energy, will focus on utilizing AI‑accelerated innovation to modernize the nation’s grid. By improving reliability and accelerating the deployment of infrastructure, the U.S. will have a power network that grows alongside the technologies it powers.
The overall strategy focuses on strengthening and optimizing the existing grid while planning for long‑term growth. Key questions include how to stabilize current infrastructure, improve its efficiency and prepare for expanding future demand.
Energy storage plays a crucial role in this plan. It is considered essential for addressing many of the reliability and growth challenges the grid will face.
How Difficult Will It Be for Utilities to Add Battery Storage to the Grid?
Storage is an important tool, but it isn’t the single answer to grid and data‑center challenges. One emerging opportunity is using the oversized battery systems within data centers as flexible assets that utilities can draw from during off‑peak periods.
Utilities must also manage a complex mix of regulatory requirements, emissions expectations and fuel‑transition considerations, all while updating or replacing their backup systems.
Building new power generation has become increasingly difficult and time‑consuming, often taking many years or even decades. Because data centers need power immediately, they are developing on‑site systems that can also support utilities. These shared systems create new collaboration models, with storage serving as the key link that allows both sides to benefit.
Interconnection delays remain one of the biggest obstacles, but they also create an opening to convert these assets into fully dispatchable resources that support grid operations.
Will Data Centers Have Excess Power and Participate on the Grid Themselves?
Data centers can participate on the grid, but doing so requires operational changes. They would need to shift how they manage and share their power resources.
Simply matching on‑site generation to their own demand doesn’t work without significant storage capacity. Without large battery systems acting as buffers, they would face major reliability issues.
When data centers install oversized storage, they gain enough flexibility to protect their own assets while also supporting the grid. In those cases, excess stored energy or unused capacity can be used as a grid resource.
Key Takeaways
Battery storage is no longer optional; it is a foundational component of AI-era infrastructure.
To support the explosive growth in AI workloads, the grid must evolve into a more flexible, distributed, storage-heavy system.
Batteries will play central roles in:
- Power reliability
- Power quality
- Grid stability
- Data center load management
- Future grid–data center collaboration models
Part two of the discussion will explore regulatory hurdles and the technologies shaping tomorrow’s energy storage ecosystem.
