Batteries are now cheaper than natural gas turbines used at many data centers
A new report from Wood Mackenzie indicates that four-hour battery storage is now more cost-effective than open-cycle natural gas turbines globally. Rising demand from AI data centers has driven up gas turbine prices and procurement wait times, while solar remains the cheapest overall energy source.
Why it matters
This shift signals a potential turning point in energy infrastructure, as battery storage becomes a viable economic alternative to traditional fossil fuel peaking plants for data centers.
Battery storage is now cheaper than a type of natural gas power plant favored by many data center developers, according to a new report from Wood Mackenzie.
On every continent and in each of the 43 markets that Wood Mackenzie surveyed, four-hour duration batteries were less expensive than open-cycle gas turbines. The consultancy predicts that the cost of electricity from batteries will continue to decline while electrons from gas turbines will only grow more expensive in the coming decades.
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