Global-Data Expects Sixfold Increase in Global Battery Storage Capacity by 2030 as 4-Hour Systems Gain Ground
London – The global rollout of battery storage is accelerating sharply, driven by rising electricity demand from electrification, industry and AI data centers, as well as the need to balance fluctuating output from growing wind and solar generation. That is according to a new market analysis by data analytics and consulting firm Global-Data.
Capacity to Grow 42 Percent a Year
In its latest report, "Strategic Intelligence: Batteries in Power (2026)," Global-Data forecasts that global installed battery storage capacity will increase sixfold between 2025 and 2030, corresponding to a compound annual growth rate (CAGR) of 42 percent. China and the United States remain the dominant markets, according to Global-Data: together, the two countries accounted for 74.6 percent of global installed storage capacity at the end of 2025, supported by factors such as regulatory frameworks and large-scale utility procurement programs.
Shift Toward Four-Hour Storage Duration
"The global power sector is increasingly standardizing on four-hour battery energy storage systems rather than two-hour designs," said Rehaan Shiledar, analyst at Global-Data. According to Global-Data, the growing share of solar and wind power is widening the daily gap between generation and demand, making multi-hour energy shifting – for example, moving midday solar output to the evening peak – more economically attractive, helping to avoid curtailment, and providing reliable capacity during steep load ramps. This is increasingly being reflected in utility and regulator procurement programs, which often set four hours as the minimum duration for capacity credits and supply security.
As examples, Global-Data cites programs run by the California Public Utilities Commission (CPUC), under which most newly built storage projects already feature four-hour discharge duration, as well as tenders in the Australian states of Victoria and New South Wales, which mandate multi-hour storage durations to help stabilize renewable energy feed-in. In the United Kingdom, too, the focus is increasingly shifting from short-term frequency regulation toward energy and capacity revenues, according to Global-Data, while in the Middle East, multi-hour solar-plus-storage combinations are being contracted to provide dispatchable power in the evening hours.
Germany: New Four-Hour Projects
The trend toward longer storage durations is also evident in Germany, as shown by several projects reported on by IWR in recent weeks. In Lower Saxony, UK-based storage developer Eku Energy is entering the German market with its "Dion" project in Lamspringe. The planned storage facility is designed for 400 megawatts of capacity and 1,600 megawatt-hours of storage capacity, with commissioning scheduled for late 2029. Similar four-hour projects are also being advanced by Swedish company Flower Infrastructure Technologies in Hamburg-Bergedorf (100 MW/400 MWh) and in Döllnitz, Saxony-Anhalt (63 MW/257 MWh). At the same time, individual project sizes are also growing: BW ESS, for instance, is building a storage facility with 1,000 megawatts of capacity and up to 5,700 megawatt-hours of storage capacity in Klostermansfeld, Saxony-Anhalt.
Solar-Storage Hybrids Becoming Standard
Beyond storage duration, plant configurations are also changing, according to Global-Data. Combined solar-plus-storage facilities at a single site with a shared grid connection reduce costs and timing risk compared with separate projects. The storage system generates additional revenue by, for example, absorbing curtailed solar power and releasing it during higher-price hours. According to Global-Data, such hybrid models also allow for oversized solar installations at sites with limited grid connection capacity, with surplus power potentially stored and later fed into the grid without exceeding the connection limit. Global-Data points to California as an example market where such models are contributing to supply security during peak demand periods.
Batteries as a Backbone for Data Centers
Battery storage is also evolving beyond short-term backup and uninterruptible power supply (UPS) applications to become a central tool for data centers, according to Global-Data. Battery systems can correct voltage or frequency issues within milliseconds, provide immediate backup in the event of an outage, and cap load peaks to stay within connection limits – enabling data centers to grow faster even at sites with limited grid capacity.
Texas: Monetizing Price Volatility
As a further application, Global-Data points to the monetization of price volatility, citing the example of the US state of Texas, where electricity prices fluctuate significantly by location and time of day. Battery storage systems could monetize this volatility by charging during periods of low prices and feeding power into the grid during price spikes, while also contributing to system stability.
According to Global-Data, energy shifting will remain the key growth driver for battery storage for the rest of the decade, supported by continued cost declines, improved monetization across multiple revenue streams, and government support programs.
Source: IWR Online, 29 Jul 2026
