By now, it's well known that AI data centers require a lot of energy to keep running. Recent industry projections have indicated that data centers could account for up to 12 percent of total U.S. electricity usage by 2028. The increased demand for electricity and energy storage has created a fast-growing market for storage batteries, and battery manufacturers across many industries are now scaling to meet that demand. Interestingly enough, this includes the automotive industry.
For example, automakers are leveraging surplus manufacturing capacity to produce stationary battery storage systems to support data centers and the power grid. Ford Energy is utilizing its Kentucky facility to manufacture stationary storage systems, targeting an annual capacity of 20 gigawatt-hours by 2027 and securing contracts with utilities, industrial manufacturers, and data centers.
Meanwhile, General Motors is pursuing multiple strategies through its Ultium Cells joint venture with LG Energy Solution—which produces lithium iron phosphate battery cells for stationary storage at its Spring Hill, Tennessee plant—alongside plans for sodium-ion batteries with Peak Energy and second-life battery projects with Redwood Materials. Tesla continues to lead the market with its established Megapack energy storage division, supplying systems directly to large-scale data centers and commercial buyers.
This expanding footprint also creates unique ripple effects across supply chains and logistics networks. Transporting these massive energy storage components requires specialized equipment, such as 8-axle open-deck haulers, route studies, and rigorous compliance with Class 9 hazardous materials regulations. For automotive businesses and dealerships tracking retail trends, this shift highlights how major manufacturers are successfully diversifying their battery production past the showroom floor.
Since electric vehicles will continue to grow in popularity, possibly thanks in part to this new development, now might be a good time to shop for an EV of your own. Contact us at Berkshire Hathaway Automotive today to learn more.