Wood Mackenzie said in a new report that battery energy storage has become cheaper than the open-cycle gas turbines widely used by data center developers. The finding covered 43 markets tracked by the firm, where four-hour battery storage costs came in below those turbine systems. The report also said the cost of battery-powered electricity is expected to keep falling over the coming decades, while power generation costs from gas turbines are projected to rise.
The report linked part of the current pricing pressure to heavy turbine procurement by AI data center developers. According to Wood Mackenzie, that buying wave has pushed up prices and stretched procurement timelines for open-cycle turbines to between two and four years. In the same survey, solar was identified as the cheapest form of new power in every market reviewed. Ahmed Jameel Abdullah, chief analyst at Wood Mackenzie, said the economic shift was decisive and that the gap is widening. The item was cited by Techub News, with TechCrunch named as the source of the report.
Consultancy Wood Mackenzie said in its latest report that battery energy storage now costs less than the open-cycle gas turbines commonly used by data center developers.
The firm examined 43 markets globally. In all of them, the cost of four-hour battery storage was lower than that of those turbine systems, according to the report.
Wood Mackenzie said the cost of battery-supplied power is expected to continue falling over the coming decades, while the cost of generating electricity from gas turbines is set to rise.
The report also said AI data center developers have been buying turbines in large volumes, pushing prices higher and extending procurement lead times for open-cycle turbines to two to four years.
By contrast, solar was the cheapest form of new power across every market covered in Wood Mackenzie’s survey.
Ahmed Jameel Abdullah, chief analyst at Wood Mackenzie, said the economic shift was "decisive" and that the gap is widening.
According to Techub News, the report was cited from TechCrunch.
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