The newly added energy storage capacity in the United States is expected to reach a record high of 71 gigawatt-hours this year, driven by the dual demand of AI and photovoltaics.

In the second quarter, the U.S. added a record amount of energy storage capacity, expected to reach historic highs this year. According to a market outlook report jointly released by the Solar Energy Industries Association (SEIA) and Benchmark Mineral Intelligence, the U.S. added 20.2 gigawatt-hours of energy storage capacity in the three months ending in June and is projected to add 71 gigawatt-hours by 2026. One gigawatt can power approximately 750,000 American homes. The report states that as of the end of the first half of this year, California and Texas lead the nation in total utility-scale battery storage capacity, with installed capacities of 62 gigawatt-hours and 33.1 gigawatt-hours, respectively. The SEIA stated that both states utilized battery power during heat waves, protecting customers from soaring electricity prices. The SEIA indicated that over 74% of the energy storage capacity installed in the second quarter was in states where President Donald Trump is expected to win in the 2024 election, largely due to growth in Arizona, Texas, and Utah. Arizona led the nation with 6.2 gigawatt-hours of newly added energy storage capacity, setting a record for any state in a single quarter. Battery storage represented a relatively small share of the U.S. electric grid in 2020 but has now become one of the fastest-growing sources of electricity. The SEIA noted that during the first 18 months of the Trump administration, utility-scale storage nearly doubled from 88 gigawatt-hours to 165 gigawatt-hours. U.S. battery storage demand continues to set records. This surge is partly attributed to the rapid development of CECEP Solar Energy and the increasing demand for electricity driven by artificial intelligence (AI). More data centers are using batteries to help manage the fast-changing power demand and provide short-term backup power. The report notes that the domestic battery industry in the U.S. faces challenges from tariffs and new tax incentives limiting the amount of equipment procured from China. However, the U.S. is boosting battery production capacity, with new factories being established in states such as Ohio, Tennessee, and Texas.