Data Center Power Revolution: How Battery Storage Is Replacing Traditional Grid Upgrades

Strategic Partnership Accelerates Data Center Deployment

In a groundbreaking move that could reshape how data centers manage power constraints, Aligned Data Centers has teamed up with energy storage developer Calibrant Energy to deploy a major battery storage system at a Pacific Northwest facility. This collaboration represents a significant shift from traditional utility infrastructure upgrades toward innovative distributed energy solutions.

Project Specifications and Timeline

The partnership will deliver a substantial 31MW/62MWh Battery Energy Storage System (BESS) to an undisclosed data center campus in the Pacific Northwest region. Scheduled for operational status in 2026, the onsite installation promises to dramatically accelerate the facility’s ability to come online and scale operations compared to conventional utility upgrade timelines, which often require multiple years for completion.

Redefining Data Center Power Strategy

Calibrant Energy CEO Phil Martin emphasized the transformative nature of the project. “This project flips the script on how data centers access power,” Martin stated. “Instead of waiting years for substation and transmission line upgrades, fossil-based generators, or going off grid entirely, we’re using distributed energy solutions to meet growth objectives.”, as earlier coverage

The companies position this deployment as the first instance of a BESS system specifically engineered to expedite interconnection for a large-scale data center facility. This approach addresses one of the most significant challenges in data center development: the lengthy process of securing adequate power capacity through traditional utility channels.

Technical Innovation and Grid Integration

The BESS will utilize Calibrant’s proprietary Path to Power solution, enabling the system to function as a grid-responsive asset. This sophisticated approach allows the battery system to discharge during peak demand periods, simultaneously enhancing grid reliability while ensuring uninterrupted service for the data center’s customers.

A key aspect of the project involves collaboration with an undisclosed regional utility in the Pacific Northwest. This partnership will explore flexibility mechanisms as a means to increase and accelerate interconnection capacity, potentially creating a new model for utility-data center cooperation.

Aligned’s Oregon Campus Development

While the specific location of the BESS project remains undisclosed, Aligned has been actively developing a significant data center campus in Hillsboro, Oregon, outside Portland. The company‘s website indicates this campus will include battery energy storage deployment, aligning with their broader energy strategy.

Aligned’s Oregon expansion includes:

• Initial announcement of a 27-acre, 108MW campus in January 2023
• Groundbreaking the same year with first building completion in 2023
• PDX-01 facility offering 72MW of critical capacity
• PDX-02 building planned for 36MW capacity

Transforming Load Management Strategy

Aligned CEO Andrew Schaap highlighted the strategic importance of this approach. “This project redefines how we grow in power-constrained markets,” Schaap explained. “With this BESS, we’re converting our load from a potential grid liability into a dynamic grid asset, providing the regional utility with the tools needed to accelerate our ramp. And we’re doing it responsibly, without impacting ratepayers.”

The partners have indicated they are evaluating similar projects across other markets, suggesting this approach could become a template for addressing power constraints in data-heavy regions nationwide.

Industry Context and Company Background

Calibrant Energy, backed by Macquarie Asset Management, has established itself as a prominent player in the US energy storage sector. The company currently maintains approximately 600MW/1,100MWh of onsite solar and storage projects in various stages of operation, construction, or development across the United States and Canada.

Recent projects include three front-of-the-meter BESS installations in New York developed in collaboration with CoreSite. These systems provide 13.5MW (55.7MWh) of dispatchable capacity to the Con Edison grid, serving both CoreSite and a leading hospital institution through Value of Distributed Energy Resources credits.

Aligned Data Centers, headquartered in Texas, operates facilities across multiple strategic markets including Oregon, Illinois, Texas, Utah, Arizona, and Northern Virginia. The company’s development pipeline includes additional sites in Maryland, Ohio, Illinois, and Virginia, plus expansion across Latin America. Collectively, Aligned’s active and planned capacity totals approximately 5GW.

The company recently made headlines in the digital infrastructure space through its formal acquisition by BlackRock and MGX in a landmark $40 billion transaction, underscoring the growing investor interest in innovative data center solutions.

Broader Industry Implications

This partnership signals a potential paradigm shift in how data centers approach power management. As energy demands from digital infrastructure continue to escalate, battery storage systems offer a flexible alternative to traditional grid upgrades that often require substantial capital investment and extended timelines.

The success of this deployment could encourage wider adoption of similar approaches across the industry, particularly in regions experiencing power constraints or lengthy interconnection queues. By transforming data centers from passive energy consumers to active grid participants, these systems may help balance regional energy demands while supporting continued digital infrastructure growth.

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