Automotive manufacturer Ford Motor Company is looking to repurpose electric vehicle batteries for use within the data center sector.

As first reported by The Register, Ford announced the launch of a new Battery Energy Storage System (BESS) business that will leverage its plants in Glendale, Kentucky, and Marshall, Michigan, to provide solutions for energy infrastructure and growing data center demand. Ford said it plans to begin shipping BESS systems in 2027 with 20GWh of annual capacity.

According to the company, it will leverage currently underutilized electric vehicle battery capacity to create a new, diversified, and profitable revenue stream, aiming to invest approximately $2 billion into the venture.

The Kentucky site will be converted to manufacture 5MWh+ advanced battery energy storage system, with an explicit focus on providing storage systems to the data center sector. The Michigan site will be used to produce Amp-hour cells for use in residential energy storage solutions.

The decision was made due to the company struggling to sell large all-electric vehicles, leading it to pivot to standalone battery solutions.

BESS and energy storage solutions are gaining traction within the data center sector, offering a range of solutions, including an alternative backup solution and increased flexibility. In October, Aligned Data Centers partnered with Calibrant to deploy a BESS at one of its data centers in the Pacific Northwest of the US.

Data center companies have also started exploring the potential of Long Duration Storage Technologies. In July, Google signed its first LDES deal with CO2 storage developer Energy Dome