Texas energy firms expand battery storage to meet data center demand

Energy companies in Texas are rapidly expanding battery storage infrastructure to support the growing electricity needs of data centers and other large-scale users.

Nightpeak Energy has brought the second phase of its Bocanova site near Houston into commercial operation. Utilizing Tesla Megapack 2 XL systems, the project has doubled its capacity to 300 megawatts, providing two-hour battery storage to support the Electric Reliability Council of Texas (ERCOT) grid.

In a separate development, Ambrosia Energy has commenced work on a 10 gigawatt-hour battery factory near Austin. The startup aims to reach full production within two to three years, focusing on solar and battery combinations to provide cost-effective, continuous power for off-grid data centers. Ambrosia is also beginning work on its first commercial power plant in West Texas, which will pair 300 megawatts of solar panels with 660 megawatt-hours of batteries.