Batteries are now cheaper than natural gas turbines used at many data centers
News Source
β’Fri, 09 Oct 2026 18:57:58 +0000
π° What Happened
A new report says batteries now cost less than a type of natural gas plant used by many data centres. The company Wood Mackenzie studied 43 markets.
In every market, four-hour batteries were cheaper than open-cycle gas turbines. The report says battery costs will keep falling while gas costs may rise. Power prices are already going up in the US and beyond.
π The Backstory
AI data centres use a lot of electricity. This demand has pushed up prices for gas turbines and made them hard to buy.
Even simple gas turbines now take two to four years to get. Waitlists for other turbines stretch to the early 2030s. Solar is also now the cheapest new power in many markets. At the same time, US energy prices keep rising.
π― Why It Matters
Cheaper power can lower bills and help the planet. It also affects how fast AI data centres grow and where they are built.
A new report says batteries now cost less than a type of natural gas plant used by many data centres. The company Wood Mackenzie studied 43 markets.
In every market, four-hour batteries were cheaper than open-cycle gas turbines. The report says battery costs will keep falling while gas costs may rise. Power prices are already going up in the US and beyond.
AI data centres use a lot of electricity. This demand has pushed up prices for gas turbines and made them hard to buy.
Even simple gas turbines now take two to four years to get. Waitlists for other turbines stretch to the early 2030s. Solar is also now the cheapest new power in many markets. At the same time, US energy prices keep rising.
Cheaper power can lower bills and help the planet. It also affects how fast AI data centres grow and where they are built.