Data center flexibility is a 285GWh market for storage

Data centers that agree to cut grid use during peaks can connect years faster. Most will need batteries to make that work.

The rules for this market are being written now. Non-firm interconnection is already live in ERCOT and SPP. By November 16, PJM, MISO, and the other FERC-regulated grid operators file new rules that decide how it works in their markets.

Our storage analyst Lukas Karapin-Springorum modeled storage demand from flexible data centers across ERCOT, SPP, PJM, and MISO. If half of forecast data center load connects as flexible load, it will need 285GWh of storage by 2035. PJM becomes the largest market in our model, and it has little storage built today.

Who this market affects

This market will produce winners and losers among developers, utilities, storage OEMs, and investors. Each faces a different decision.

Developers and IPPsWhere to develop next, and how to size projects under each curtailment rule.

Storage OEMsHow much manufacturing capacity to build, and when.

Data center developersWhether to buy storage projects to secure speed to power.

Investors and lendersWhich technologies will scale and which providers to back.

Built on Currence data

Clients get readiness scores and cost benchmarks for every major storage technology and provider. We also track about 400GW of data center capacity and the offtake contracts behind it. It all lives in our platform, API, and MCP.

More than 90 teams use Currence, including Microsoft, Southern Company, Siemens Energy, and Baker Hughes.

Download the report

We're sharing a public version of the report with the model's key charts and findings. Fill out the form below to download it.

Currence clients can read the full report in the platform.