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Daily Briefing

The U.S. Battery Industry Is Averaging 70% Annual Growth

This type of clean energy infrastructure is booming across the country.

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Batteries.
Heatmap Illustration/Getty Images

This is an edition of Heatmap Daily, an evening review of the day’s news written by our executive editor. Sign up for it here.

You know it, and I know it: The United States struggles to build certain kinds of large-scale energy infrastructure. That presents a challenge for people who, say, want to decarbonize the economy, because decarbonizing will require replacing the stock of fossil fuel-consuming power plants and pipelines with new clean alternatives. Even carbon-intensive industries, such as data centers, have started to hit bottlenecks.

Yet there is at least one energy industry that’s pulling off year-over-year, double-digit growth rates in the United States right now — and it’s not data centers.

It’s batteries. The battery storage industry is booming across the country, according to new data from the Energy Information Administration. The amount of utility-scale battery storage capacity has grown by an average of 70% over the past three years, according to a recent EIA article. Developers and utilities have added 8.3 gigawatts of capacity just in the first six months of this year, and the agency says that we could add another 14 gigawatts by the beginning of 2027.

Our nerdier readers will understand this, but this battery boom is changing the nature of electricity itself. Until recently, the easiest way to store electricity was to keep a stash of unused fuel on the same site as a power plant, usually in the form of coal, natural gas, diesel, or uranium. There were other ways to store power — perhaps by building a pumped storage hydropower facility — but they weren’t particularly easy, cheap, or modular, and their constraints only made them suitable for some sites.

But lithium-ion batteries have allowed developers to quickly build out battery storage facilities across the country. I recently came across such a site while hiking in Harriman State Park, 40 miles north of New York City, where the local utility had built grid-scale batteries near a substation to help stabilize the grid. (It was like meeting a celebrity.) And while batteries are not necessarily clean, per se — they can technically save any “type” of electricity for later — solar farms are building larger batteries than any other type of power plant, the EIA says.

It helps that the Inflation Reduction Act’s tax incentives for grid-scale battery construction survived President Donald Trump’s partial repeal last year. The battery boom has stabilized other parts of the clean energy economy. Ford and General Motors have invested in grid-scale battery technology or retooled what were once EV production lines to make grid-scale batteries instead.

None of this, to be clear, is to say it's always easy to develop batteries. There are now 74 gigawatts of pending battery projects across the country, according to Heatmap Pro data. About 34 projects — totaling at least 6.1 gigawatts — have been canceled over the past few years, our data shows.

Yet our data — and the EIA’s — also shows that dozens of battery projects have overcome public opposition and successfully gotten built. I expect we'll see even more power on in the future.

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Hotspots

Meta Data Center Federal Pipeline Review Due Early Next Year

And more of the week’s top fights around development.

The United States.
Heatmap Illustration/Getty Images

1. Richland Parish, Louisiana – Gird your loins for the coming fight over the Meta Hyperion data center’s gas pipeline.

  • On Wednesday, the Federal Energy Regulatory Commission laid out plans for an environmental assessment of the Entergy pipeline for the Meta data center under the National Environmental Policy Act and stated it’ll be issued in early January 2027. Federal agencies have been ordered by the panel to complete any remaining decisions on authorizations by April.
  • The decision to do an environmental assessment under NEPA will be controversial. The Sierra Club filed comments to FERC stating they wanted an environmental impact statement instead that took into account the environmental impacts of the data center being fed by the pipeline, as well as a review of the project’s cumulative impacts, as the activist group said they’re explicitly linked to the data center’s operations. “The power stations and data center are not remote or speculative developments unrelated to the proposed action,” their comments read.
  • This is quite similar to what’s playing out with the Green Chile pipeline in New Mexico for Oracle and OpenAI’s Project Jupiter, which we recently explained could turn into litigation with high stakes for future gas pipelines linked to data centers. But to me, this conflict with Meta feels like it has more at stake for this individual project, as it’s playing out while construction on gas power plants for the data center has been underway for almost a year after earlier being blessed by state regulators.
  • I asked Sierra Club what could happen next. Eric Huber, one of their managing attorneys, told me on Thursday, “I heard the EA is expected in January, but we are in wait and see mode and will decide on further steps when it comes out.” Meta and Entergy did not respond to a request for comment.

2. Spartanburg County, South Carolina – I have one last data center race to tell you to watch on Tuesday: South Carolina’s 4th, on the northern rim of the state.

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Plus

Is the Election Really About Data Centers?

Talking with Kevin Gundersen, the head of public affairs for Digital Realty.

Kevin Gundersen
Heatmap Illustration

This week’s conversation is with Kevin Gundersen, head of public affairs for data center developer Digital Realty. On Wednesday, Digital Realty released a fascinating poll as part of Infrastructure for America, a pro-data center organization that also includes Compass, Vantage Data Centers, and QTS. The poll pushed back on the idea that we’re currently in the middle of a “data center election”; instead, it found most voters are not expected to choose their national elected officials based on a politician’s stance on data centers.

I reached out to folks involved in the poll's release, and they put me in touch with Gundersen, whom I’ve met before and consider to be a straight shooter. He accepted my invitation to do a candid hot-seat chat about the findings, his thoughts on all the data center attack ads, and whether his industry’s actually recovering any ground with the American people.

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Politics

Why Project Certainty Is the Thorniest Part of the Permitting Bill

Can a key section of BAAJA be saved from unintended consequences?

Donald Trump and Congress.
Heatmap Illustration/Getty Images

Any bipartisan bill to update the nation’s permitting laws was always going to be a compromise, with advantages for the oil and gas industry as well as clean energy. Proponents of the Senate’s latest attempt at permitting reform have painted it as a delicate balance, a hard-won opportunity, and an all-or-nothing deal.

What, then, to make of drafting errors, or unintended consequences?

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