Data Centers and the Future of Energy Storage

Data Centers and the Future of Energy Storage

From Switched On by Bloomberg

May 7, 2026 · 32 min

About this episode

The episode discusses how data centers are transforming the energy storage market and their potential role in the future power grid.

The AI boom is ushering in a new era for energy storage. As data center buildout accelerates, batteries are evolving from short-duration backup tools into larger, more flexible systems that can help bring facilities online faster and manage complex power needs. In the US in particular, a growing pipeline of projects is emerging, with batteries increasingly paired with on-site generation or used to smooth demand and unlock faster connections to the grid. So how are data centers changing the energy storage market, and what role could these systems play in the power grid of the future? On today’s show, Tom Rowlands-Rees is joined by, Caitilín McManus, a technology and innovation associate at BloombergNEF, to discuss her recently released note “Data Centers’ Energy Storage Ramp Up: Project List Grows.” Complementary BNEF research on the trends driving the transition to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com Links to research notes from this episode: Data Centers’ Energy Storage Ramp Up: Project List Grows - https://www.bnef.com/insights/39221   See omnystudio.com/listener for privacy…

People in this episode

Host: Tom Rowlands-Rees

Guest: Caitilín McManus

Topics covered

  • energy storage
  • data centers
  • AI boom
  • power grid
  • batteries
  • lower-carbon economy

Keywords

  • energy storage
  • data centers
  • batteries
  • power grid
  • AI
  • BloombergNEF
  • lower-carbon economy

Mentioned in this episode

Organizations: BloombergNEF, BNEF, Bloomberg

Books & works: Data Centers’ Energy Storage Ramp Up: Project List Grows

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