U.S. Adds Record 9.7 GWh of Battery Storage in Q1 as AI Power Demand Surges
Updated
Updated · Forbes · May 26
U.S. Adds Record 9.7 GWh of Battery Storage in Q1 as AI Power Demand Surges
4 articles · Updated · Forbes · May 26
9.7 gigawatt-hours of battery storage came online in the U.S. in the first quarter, up 32% from a year earlier and marking a record for the period.
AI data centers' fast-rising electricity needs are driving the buildout, with storage increasingly paired with solar and wind to support grid reliability and curb fossil-fuel use.
Ford and General Motors are redirecting some battery projects away from EVs toward energy storage after U.S. EV sales fell 27% in the quarter following the end of the $7,500 federal tax credit.
610 GWh of U.S. storage could be installed by 2030 at the current pace, even as broader clean-tech investment fell 9% to $61 billion and new manufacturing plans plunged 79% to $2 billion.
With U.S. EV sales falling, can AI's massive energy demand single-handedly rescue America's clean tech sector?
While federal EV support fades, why is California spending billions to put Tesla's electric Semi trucks on its roads?
Record 9.7 GWh U.S. Battery Storage Growth in Q1 2026: AI, Data Centers, and the Future of the Grid
Overview
In Q1 2026, the U.S. battery storage sector saw record-breaking growth, driven by soaring demand from AI and hyperscale data centers. This surge was supported by a favorable policy environment and a sharp drop in battery costs, with prices falling 55% since 2022. Utility-scale projects led the expansion, and most new capacity was installed in traditionally conservative states, showing broadening acceptance. Volatile electricity prices and the need for reliable power further fueled this momentum. Together, these factors highlight how AI-driven demand, supportive policies, and economic trends are rapidly transforming the nation’s energy landscape.