U.S. electricity prices are rising as utilities funnel cash into America’s aging infrastructure. Energy bills in some states have climbed more than 20% in just a few years due to surging AI demand.

Many data centers and factories now face multiyear waits for grid upgrades. And those upgrades must be built solely to handle a few dozen critical hours each year.

The issue is every data center wants to deliver during those peak bottleneck times. So instead of waiting in line, some are taking matters into their own hands by relying on batteries as a bridge.

Grid-scale battery storage is emerging as the most important relief valve in the modern power system, making a jump from a supporting role to core infrastructure. It’s even being backed by the government. 

In October, the Department of Energy urged regulators to allow big new customers to connect earlier if they commit to curbing demand during the limited hours when the grid is most strained.

And these rules are already influencing development.

Developer Aligned Data Centers just announced it’s installing a 31-megawatt battery at an upcoming data center in the Pacific Northwest.

The battery will be operated by the local utility company. It’s allowing a new data center to connect to the grid years ahead of the traditional schedule.

Put simply, by funding grid investment, data centers can skip the line to get power.

With energy becoming the single-most important bottleneck in today’s AI boom, it’s creating demand for companies that specialize in grid storage.

Right now, Fluence Energy (FLNC) stands out as a potential winner.

The company is a battery supplier and is not tied to consumer devices or electric vehicles. Instead, it focuses on the large utility-scale systems needed for peak demand management. Grid operators need Fluence’s capabilities as they balance rising loads and longer queues.

Despite providing a critical service, it hasn’t always been a smooth ride for the company as it has lost money for five straight years. 

However, in 2024, Fluence turned a profit for the first time. Its Uniform return on assets (“ROA”) went from negative levels to positive, generating 10% returns.