Data Center Power Shift Toward Batteries and Solid‑State Transformers

At the DCR Live 2026 conference, Paul Willoughby of EnerSys explained how the rise of AI and high‑performance computing is creating more variable and spiky workloads for data centers. He emphasized the need to correctly size battery systems, consider total cost of ownership, and treat batteries as strategic assets rather than just day‑one expenses. Willoughby also called for longer‑term investment thinking and greater public awareness of data‑center energy use.

A related industry webinar hosted by ROTH Capital Partners highlighted a broader move away from diesel generators toward battery energy storage systems (BESS), solid‑state transformers (SSTs) and high‑voltage DC architectures. Bill Mazzetti of Rosendin noted that diesel backup coverage on new projects has fallen to 15‑40%, while BESS is now present on virtually every new data‑center build. The shift is driven by utility interconnection constraints, demand‑response rules and policies such as Texas Senate Bill 6. Developers are also adopting microgrids and “inference nodes” to process AI workloads locally, reducing reliance on long interconnection queues. The market outlook predicts 35‑40% annual growth in data‑center construction through 2029 before a modest slowdown in 2030, with potential for acquisition activity in power‑electronics firms.

Both sources indicate that data‑center operators are re‑engineering power delivery to improve efficiency, lower capital costs and support rapid AI‑driven growth.