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A report by researchers at Georgetown and Duke universities argues that batteries should be considered before new gas plants to meet data center electricity demand. The authors say storage can be cheaper for needs that require only several hours of power and can reduce the risk that utility customers pay for gas projects if data center demand falls short.
Researchers from Georgetown and Duke universities say batteries should be a first option for meeting at least part of data centers’ rising electricity demand, rather than defaulting to new gas plants. Their report argues that storage can be cheaper and quicker to deploy for needs that last several hours, while giving utilities more flexibility if planned data center projects are delayed or canceled.
The report addresses a rapid expansion of gas proposals tied to data centers. U.S. utilities are planning more than 60 gigawatts of new gas plants to serve data center demand, while about 90 gigawatts of behind-the-meter gas generators have been proposed nationwide, according to the Canary Media report. Those figures describe plans and proposals, not capacity already built or operating.
The researchers do not argue that batteries can supply data centers around the clock on their own. Lithium-ion storage is limited by how long it can discharge before it needs to recharge, but Duke energy and climate policy director Jackson Ewing said batteries could meet large portions of data center electricity needs. The report says storage may be particularly economical when batteries for data centers can provide several hours of stored power to address near-term requirements.
It also points to batteries’ modularity: projects can be expanded or scaled back more readily than gas plants if demand changes. The authors recommend state policies that encourage data centers to procure or pay for new clean generation and storage. Options include clean-energy tariffs in states that regulate utilities, and storage mandates or coordinated energy planning in states with restructured electricity markets.
Reducing Gas Investment Exposure
The choice affects more than the companies building data centers. If utilities construct gas plants for proposed facilities that do not materialize, or close early, the costs could fall on other electricity customers. The report describes this as stranded-asset risk. Batteries, by contrast, can be deployed in stages, potentially limiting the amount of infrastructure committed before the scale and timing of data center demand are clear.
There is also a climate consequence. Building and operating new gas generation would increase fossil-fuel use, while pairing storage with carbon-free electricity could reduce emissions. The report’s case is not that batteries eliminate the need for firm power in every situation; rather, it says states and utilities should compare storage and clean-energy options before committing to gas for every new data center load.
For residents and policymakers, the debate is about who pays for new capacity and whether power investments remain useful if forecasts change. The report offers policy approaches, but it does not establish that batteries will be the least-cost answer for every location or operating profile.
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How States Could Encourage Storage
Data centers need large, dependable supplies of electricity, and gas has attracted developers because it can provide power on demand. Ian Hitchcock, a report co-author and senior program coordinator at Duke’s Initiative for Science and Society, said the current preference for gas behind the meter reflects inertia and status quo pressure. The report contrasts that established option with batteries, which are already being deployed, and with newer technologies such as advanced geothermal, next-generation nuclear and long-duration storage.
Policy tools differ by state. Where regulators oversee utility investment, the report suggests “bring your own new clean energy” tariffs that require data centers to arrange or fund a specified amount of carbon-free generation and storage. Google has signed onto such tariffs with regulators in Nevada and Minnesota, according to the source report.
In restructured markets, state regulators have less direct authority over independent power producers and wholesale generation. The report points instead to state storage mandates, including policies in Illinois, Maryland and New Jersey, and to planning with regional grid operators. BloombergNEF’s cited forecast projects U.S. energy storage deployment exceeding 11,000 gigawatt-hours by 2036; that forecast was 30% higher than its estimate issued six months earlier, according to Canary Media.
“Batteries can meet large portions of data center electricity needs.”
— Jackson Ewing, director of energy and climate policy at Duke University’s Nicholas Institute
Limits of the Battery Case
The report’s recommendation does not establish how much battery capacity each data center would need, or when storage would be sufficient to avoid building new gas generation. That depends on local grid conditions, the duration and timing of demand, available clean electricity and the reliability required by each facility. The source material does not provide a project-by-project cost comparison or quantify the emissions avoided under the proposed policies.
It is also unclear how many of the gas proposals will be built or how much data center demand will ultimately arrive. The proposed capacity figures should not be read as completed projects. Batteries can shift electricity across time, but they do not generate power; their contribution depends on having electricity available to charge them. The report’s case is therefore a policy recommendation and assessment of options, not a guarantee that storage can replace gas in every case.
State Policy and Project Decisions
The next steps depend on state regulators, lawmakers, utilities and data center developers. In regulated markets, decision-makers could establish or expand tariffs requiring new facilities to procure clean power and storage. In restructured markets, states could consider storage requirements and coordinate planning with regional grid operators. The source report does not identify a single nationwide policy or a uniform implementation schedule.
As utilities and developers decide which projects to build, the key questions will be how much new data center demand is confirmed, what share can be served by storage paired with clean generation, and how investment costs are assigned. The report calls for batteries to be considered before gas where they can meet the need; whether that changes planned projects remains to be seen.
Key Questions
Does the report say batteries can power data centers around the clock?
No. The report recognizes that lithium-ion batteries cannot provide round-the-clock power on their own. It argues they can meet large portions of demand, especially where several hours of stored electricity can address the need.
How much gas capacity is being proposed for data centers?
The source report says U.S. utilities are planning more than 60 gigawatts of new gas plants and about 90 gigawatts of behind-the-meter gas generators have been proposed. These are planned and proposed figures, not operating capacity.
What policies do the researchers recommend?
They suggest clean-energy tariffs requiring data centers to procure or pay for new carbon-free power and storage, along with state storage mandates and energy planning with regional grid operators where regulators have less direct control over generation.
Why might batteries reduce costs for other electricity customers?
If a utility builds a gas plant for data center demand that later fails to materialize, other customers could be left paying for unused infrastructure. The report says batteries’ modular deployment can help limit that exposure, though outcomes depend on project and grid conditions.
Source: canarymedia.com
