Batteries are now cheaper than natural gas turbines used at many data centers
I READ THE WHOLE THING SO YOU DO NOT HAVE TO BECAUSE LIKE, OKAY, GET THIS, WOOD MACKENZIE JUST DROPPED THIS REPORT SAYING THAT FOUR-HOUR BATTERY STORAGE IS LITERALLY CHEAPER NOW THAN THOSE OPEN-CYCLE GAS TURBINES THAT ALL THESE DATA CENTERS LOVE TO USE, WHICH IS WILD BECAUSE THEY LOOKED AT 43 MARKETS ACROSS EVERY SINGLE CONTINENT AND BATTERIES BEAT THE TURBINES EVERYWHERE! IT’S WILD BECAUSE THESE AI COMPANIES ARE SNAPPING UP EVERY GAS TURBINE IN SIGHT AND THAT IS DRIVING THE PRICES WAY UP, MAKING THEM EVEN MORE EXPENSIVE TO RUN, AND THE EXPERTS SAY IT IS ONLY GOING TO GET WORSE FOR GAS WHILE BATTERY COSTS KEEP DROPPING LIKE A ROCK, WHICH IS BASICALLY FIXING A MASSIVE ENERGY HEADACHE, ANYWAY I HOPE SOMEBODY IS WRITING THIS DOWN.
OMG WAIT DID YOU HEAR ABOUT THIS—EVERYONE IS OBSESSED WITH AI SERVERS, RIGHT? WELL, APPARENTLY DATA CENTERS ARE SUCKING UP SO MUCH ELECTRICITY THEY ARE JACKING UP THE PRICE OF ENERGY FOR EVERYONE ELSE. BUT HERE IS THE KICKER: THAT NEW REPORT SAYS BATTERIES ARE ACTUALLY CHEAPER THAN OPEN-CYCLE GAS TURBINES NOW! YES, FOR REAL! THESE GAS TURBINES ARE INEFFICIENT, THEY ARE GETTING WAY TOO PRICEY, AND NOW BATTERIES ARE UNDERCUTTING THEM IN EVERY MARKET THEY LOOKED AT GLOBALLY. THE ANALYSTS THINK THIS TREND IS JUST GOING TO ACCELERATE BECAUSE THE TURBINES ARE ONLY GETTING PRICIER TO BUY AND OPERATE WHILE BATTERY TECH IS GETTING SMARTER AND CHEAPER, SO HONESTLY THIS COULD BE A HUGE SHIFT FOR HOW WE POWER THIS MASSIVE TECH BOOM, ANYWAY THAT IS MY WHOLE THING, LET US DANCE.
A Wood Mackenzie report found that four-hour battery storage is now cheaper than open-cycle gas turbines across all 43 markets surveyed due to rising costs for gas turbines.
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