Shift Key with Robinson Meyer Data Centers Are Creating a New Kind of Battery Monster
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Feb 25, 2026 Peter Fried, founding partner at the Near Horizon Group and former Meta energy strategist, discusses how the AI-driven data center boom reshapes energy. He explains why operators choose on-site gas, how batteries are being paired with generators, and which regions and supply-chain limits are shaping rapid buildouts. Short, forward-looking takes on reliability, community pushback, and where the market might head next.
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Behind The Meter Gas Is The New Default
- Behind-the-meter gas generation is now widespread in new data center projects as a bridge until grid interconnections arrive.
- Developers commonly build on-site gas capacity equal to 100% of projected load, then later repurpose or integrate it when the grid hookup comes online.
Gas Plus Batteries Delivers 'Nines' Reliability
- Data centers pair gas turbines with multi-hour battery storage to meet extremely high reliability "nines" required by customers.
- Operators add 2–4 hour lithium-ion storage at the fence line to hit uptime targets and smooth generator behavior.
Efficiency Gains Fuel More AI Demand
- Jevons paradox is manifest: AI efficiency gains lower cost but drive far more compute demand.
- Improvements in chips and algorithms (e.g., NVIDIA custom silicon) increase use rather than reduce overall energy consumption.