June 9, 2026
Key Points
- AI-driven data center growth is increasing the demand for electricity, prompting investment in on-site energy storage systems and uninterruptible power supply solutions to support reliable power delivery.
- Energy storage systems are critical for data center reliability, helping manage power fluctuations during AI workloads to support continuous operations.
- Battery manufacturers and manufacturers in other industries are scaling to meet rising demands for energy storage and grid resilience.
The rapid expansion of artificial intelligence (AI) is having a significant impact on how energy is produced, stored and delivered around the world.
As demand for AI-powered computing accelerates, data centers are drawing unprecedented levels of electricity and driving new investment in grid-scale and on-site energy storage systems (ESS).
The U.S. Energy Information Administration (EIA) expects U.S. electricity use to grow by 1% in 2026 and 3% in 2027, and the agency has noted that “the driving factor behind this surge” is large computing centers.
Additionally, on Feb. 20, the EIA reported that U.S. electric generating capacity is expected to set a record in 2026, and battery storage will account for 28% of that new additional capacity.
In response to this growing demand, manufacturers are stepping up, including some that are repurposing electric vehicle (EV) battery production capacity to serve the fast-growing energy storage market.
The Ford Motor Company recently introduced Ford Energy, a subsidiary that aims to “provide United States-assembled battery energy storage systems (BESS) for utilities, data centers and large industrial and commercial customers in the United States.” Among the cited business factors contributing to this launch were “data center growth, renewable energy integration and grid resilience requirements.”
In similar development, on May 27, LG Energy Solution Vertech (the U.S. energy storage division of LG Energy Solution) announced an agreement with DTE Energy to develop battery energy storage systems that “will store electricity during times of excess generation and distribute the power to customers as needed to meet peak periods of customer demand.” This supply agreement, consisting of eight projects in the state of Michigan, is designed to reduce strain on the grid and enhance grid reliability.
Energy Storage and UPS Solutions Enable Reliable Power for AI Workloads
Large language models (LLMs) and other AI tools require highly reliable, uninterrupted energy delivery to protect sensitive computer technology. LLMs consume power in a way that causes very large fluctuations over a very short span of time. The addition of energy storage systems throughout a data center — either at the server or at the facility — helps reduce those fluctuations, resulting in more stable power.
“As energy demand continues to rise, we prioritize safety while helping companies address challenges related to grid resilience, renewable energy scaling and regulatory compliance,” said Wesley Kwok, vice president and general manager of the Energy and Industrial Automation group at UL Solutions. “Our expertise in data centers, energy storage systems and battery technology is vital for many stakeholders. This is yet another example of how UL Solutions views safety as the foundation for innovation.”
Today’s demand for electricity is also driving increased adoption of uninterruptible power supply (UPS) systems alongside energy storage solutions to maintain continuous operations and mitigate power disruptions in data centers.
Unlike traditional EV batteries, energy storage systems are installed in stationary environments and often operate at much larger scales. These systems introduce new complexities involving thermal management, fire mitigation, installation and other factors.
Battery Safety, Regulatory Compliance and Trust Are Essential
To address these challenges, battery manufacturers and system integrators often seek assistance from UL Solutions, which has more than 40 years of experience in the field of battery safety. UL Solutions offers independent, unbiased expertise in safety, compliance and performance.
Many analysts expect electricity demand from data centers to keep rising, further increasing the need for resilient ESS and UPS solutions.
More information about how UL Solutions helps battery product manufacturers demonstrate product compliance, quality and performance is available on the Batteries and Energy Storage page at UL.com.