S&P Global – Data centers, manufacturers supercharge US battery storage rollout in 2025

Large-scale battery storage resources continue charging rapidly into US power markets, needing just three quarters of 2025 to exceed last year’s record installation volumes, according to S&P Global Market Intelligence data.

Developers added 4.5 GW in this year’s third quarter, a 24.5% increase from a year ago, pushing annual installed battery power storage capacity in 2025 to nearly 11.6 GW, the data shows. That is up from 7.8 GW through the first three quarters of 2024 and 11.5 GW for the full year. Entering the fourth quarter, cumulative installed battery power capacity stood at 41.5 GW, consisting mostly of lithium-ion battery systems with a capacity of up to four hours.

Battery storage has emerged as a top choice for US utilities racing to meet rising electricity demand, fueled by data centers and manufacturers. But increasingly, in areas experiencing grid constraints, tech and manufacturing giants are dealing directly with developers to quickly build big battery systems at their facilities, often combining them with other onsite resources.

Ameresco Inc., for instance, in October completed a 50-MW/200-MWh battery array at US steel maker Nucor Corp.’s expanding mill in Kingman, Arizona. Touted as the biggest behind-the-meter storage project in the state, and one of the largest nationwide, it relies on Megapack systems from Tesla Inc. to support Nucor’s new electric arc furnace. Ameresco plans to bring online a 25-MW solar farm at the site in 2026, augmenting the colocated batteries and grid power.

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