Battery energy storage systems (BESS) have emerged as a critical enabler for data centers, especially in an environment where data center size is growing and getting grid interconnections becomes increasingly more difficult.

While BESS applications for data centers may not be widely understood, it is not just a backup solution. When intelligently integrated into the facility and utility grid, it facilitates interconnection and becomes a revenue-generating asset that improves return on investment (ROI) on infrastructure deployments.

This white paper provides a financial roadmap for BESS adoption in US-based data centers, with a focus on stacking value across three dimensions:

• Revenue generation via energy market participation (e.g., frequency regulation, energy arbitrage, and ancillary services).
• Operational savings through peak shaving, deferred grid upgrades, and enhanced uptime.
• Regulatory and policy alignment, unlocking incentives like the federal Investment Tax Credit (ITC) and utility-specific programs.