Batteries are now cheaper than natural gas turbines used at many data centers

Wood Mackenzie reports that four-hour battery storage is now cheaper than open-cycle gas turbines in every continent and all 43 markets it surveyed. Demand from AI data center developers has worsened turbine shortages, pushing prices higher and extending procurement timelines to years.

The findings suggest data centers and utilities may increasingly favor batteries and solar over gas peaker plants for new capacity. Rising turbine costs and long waitlists could accelerate the shift toward cleaner grid flexibility, especially as electricity demand surges from AI infrastructure.