Why energy storage is increasingly dictating data center site selection

The enormous and rapidly growing power demands of modern data centers, particularly those supporting AI workloads, are transforming energy storage into a primary determinant of site selection. Traditional data center models, which rely heavily on utility grids, are proving insufficient given grid instability and the need to manage massive peak loads. Battery Energy Storage Systems (BESS) are evolving beyond simple backup solutions into critical operational tools used for resilience, optimizing power usage, and integrating intermittent renewable energy. Consequently, the ability to effectively and affordably deploy large-scale BESS solutions now dictates where new facilities are sited, fundamentally changing how data center development decisions are made.