The U.S. energy storage industry installed a record 57.6 GWh of new battery capacity in 2025, representing a 30% increase from the previous year's record and more than four times the amount installed just three years ago. This growth is part of a rapidly expanding market for energy storage installations. Energy storage capacity has been steadily increasing in recent years, with significant growth seen between 2023-2026.
The increasing reliance on artificial intelligence (AI) and data centers is expected to more than double electricity demand by 2030, with AI-optimized servers consuming up to 10 times the energy of traditional computing. Prime movers' reliability will be critical to maintaining power uptime as demand for electricity continues to rise, particularly in regions where data centers may account for a significant portion of overall consumption. The rapid growth of these technologies underscores the need for reliable and efficient power generation systems.
European Union countries have made limited progress on energy storage deployment, and only made partial implementation of electricity network flexibility recommendations. The EU aims to increase its energy storage capacity by 2025 to meet its renewable energy targets. Progress towards achieving these goals remains slow.
Fotowatio Renewable Ventures plans to roll out a 1.2GW/5GWh portfolio of battery energy storage system (BESS) projects in Spain, marking a significant expansion of its renewable energy capabilities. The projects are expected to support the country's growing demand for clean energy and stabilize the grid. This rollout will help Fotowatio Renewable Ventures meet the increasing need for battery storage solutions in the region.
US-based ESS Tech has acquired the assets and intellectual property of VoltStorage GmbH, a German developer of iron-salt battery technology, to strengthen its long-duration energy storage portfolio with complementary technologies. The acquisition combines two iron-based flow battery technologies to deliver flexible and cost-effective solutions for long-duration energy storage applications. ESS Tech's iron flow battery systems offer 8-12 hours of discharge at rated power in commercially available configurations.
Small-scale behind-the-meter storage in Australia's National Electricity Market could supply up to half the peak output of Eraring coal-fired power station by the end of 2026, driven by a rapid growth in home battery energy storage systems. The Cheaper Home Batteries Program has seen its budget more than tripled from AUD 2.3 billion to AUD 7.2 billion due to enthusiastic uptake by households and businesses. This rapid scaling is transforming small-scale behind-the-meter storage into a significant force within Australia's energy system.
Deloitte urges India to align renewables with AI-driven data center growth, emphasizing grid readiness, transmission upgrades and coordinated policy reform to support sustainable energy at scale. The report highlights that India's expanding renewable energy base can power the next phase of data center growth, while balancing economic value with reliable and sustainable power. Aligning these critical enablers is essential for positioning India as a major global data center hub amidst Asia Pacific's "tipping point" in AI, cloud, and digital connectivity.
A big battery project near Boston may be able to help alleviate the US power grid's capacity issues by storing excess energy during off-peak hours and releasing it when demand is high, potentially saving billions of dollars on transmission costs. The project aims to demonstrate the feasibility of this approach as a solution to the country's electricity grid challenges.
The US Air Force has deployed a 5 MW portable nuclear power station for the first time, airlifting it on a C-17 Globemaster III from California to Utah. The deployment marks a new era of deployable energy and logistical capabilities. This is the world's first such deployment by the US Air Force.
The US Department of Energy's Oak Ridge National Laboratory has partnered with Kairos Power to develop a new generation of advanced nuclear reactors, with a USD27 million investment. The collaboration aims to speed up the deployment of these reactors. Advanced reactor design is a key focus area for the partnership.
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