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AI Boom Fuels Fossil Fuels With Battery Backup
24 Apr
Summary
- Data centers pair batteries with natural gas for AI power needs.
- 4.9 GW of energy storage co-located with fossil fuels at US data centers.
- China pressures local officials to meet ambitious climate goals.

The escalating demand for artificial intelligence is leading US data center operators to adopt an unexpected energy strategy: pairing batteries with natural gas generators. This approach, which complements batteries' traditional role in renewable energy integration, is becoming a key solution for ensuring reliable power for AI infrastructure.
Globally, 4.9 gigawatts of energy storage have been announced alongside on-site fossil fuel generation at data centers, with a substantial portion located in the US. Projects like Elon Musk's Colossus supercomputer in Memphis, Tennessee, exemplify this trend. Companies like Caterpillar and GE Vernova are now offering products that combine energy storage with gas generation.