Power
New battery tech helps data centers manage grid stability
Startup ON.Energy has secured a five-gigawatt order from Crusoe to deploy a centralized lithium-ion battery system designed to protect power grids from data center disruptions.
Key points
- Data center demand surges can cause sudden grid drops and threaten electrical stability.
- ON.Energy developed a centralized uninterrupted power supply system combining grid-scale storage with traditional UPS functions.
- Major developer Crusoe has committed to a five-gigawatt order for the new technology.
What happened
A new class of lithium-ion battery systems is emerging to help artificial intelligence data centers integrate more smoothly with electrical grids. According to Canary Media reporting, startups such as ON.Energy are developing centralized uninterrupted power supply systems that sit between the grid and data computing facilities.
Traditional data centers rely on legacy lead-acid battery banks and diesel generators purely for emergency backups. The new technology uses advanced inverters to electrically decouple the data center load from the power generation source, acting as a shock absorber against rapid fluctuations in electricity demand.
Why it matters
Data centers present unique challenges for grid operators because their power consumption can jump rapidly from minimal levels to full capacity within milliseconds. Furthermore, their sensitivity to power quality can cause them to disconnect suddenly, creating multi-gigawatt drop-offs that threaten regional grid stability.
Grid operators and regulatory bodies in North America have increasingly targeted large computational loads with stricter reliability requirements. Centralized battery systems aim to mitigate these risks by presenting utilities with a predictable, constantly charging load while delivering steady power to the servers.
What comes next
Following successful trials at a national grid testing facility, ON.Energy is preparing to deploy its technology at commercial scale under a five-gigawatt order from AI data center developer Crusoe. Industry watchers note that testing of similar systems is also underway at the National Laboratory of the Rockies.
Once installed primarily for grid stabilization and backup, these multi-hour battery assets could eventually help data center operators manage peak demand and store excess renewable energy.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Grids decide whether generation becomes power that homes and businesses can rely on. Generation mix, transmission and distribution losses, and tariffs together shape reliability and the case for investment.
91.9% of people worldwide had electricity in 2024Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
