Last year, the U.S. energy sector invested $100 billion in battery storage for sustainable energy. Today, these batteries not only support wind and solar power, but also power artificial intelligence data centers, with investment continuing to grow.
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Estimates suggest that AI data centers could account for 17% of total U.S. energy consumption by 2030, which has significant implications for the battery energy storage systems (BESS) market. The original estimate of $100 billion now seems conservative.
American Clean Power (ACP) 's estimate focuses on building a domestic battery manufacturing base, with companies like LG planning to produce more than 16 GWh of capacity annually from its existing production lines in Holland, Michigan.
Benchmark analysts expect the U.S. to deploy more than 600 GWh of energy storage by 2030, with annual installations nearly doubling as energy demand from AI accelerates. By the end of 2025, the U.S. had 137 GWh of utility-scale storage, 19 GWh of commercial and industrial, and 9 GWh of residential, for a total of 156 GWh of energy storage today.
This could nearly quadruple by 2030, with the Solar Energy Industries Association (SEIA) targeting up to 700 GWh.
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“Expanding energy storage capacity is critical to ensuring our nation’s energy security and resilience,” said SEIA President and CEO Abigail Ross Hopper.
Executives from ACP and utility representatives have expressed a commitment to a fivefold increase in active investment, which could lead to BESS projects being 100% built in the U.S. However, this vision is predicated on a simplified licensing environment and predictable tax and trade policy.
CEO Jason Grumet noted the tension between favorable investment fundamentals in the energy sector and uncertainty around trade policies. Rapidly falling battery costs and increasing density are leading to improvements in efficiency and reliability, with companies like Hyundai and Tesla delivering batteries capable of lasting hundreds of thousands of miles.
Form Energy CEO Mateo Jaramillo said his company sources more than 80% of its battery content in the U.S. and much of the rest from Europe and Asia outside of China. They aim to bring more production back to the U.S., but remain exposed to imports from China, which is subject to high tariffs. Form hopes to source iron ore from U.S. mines in Michigan and Minnesota.
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COVID-era disruptions to the global battery supply chain have highlighted the need for a stronger domestic manufacturing base, according to Fluence Americas President John Zurancik.
