# Data Centers Favor Battery Storage Over Gas

A Wood Mackenzie report finds that four-hour battery storage now costs less than open-cycle gas turbines in all 43 markets surveyed. Turbine procurement delays and rising prices are further increasing the cost of gas-fired generation. For energy suppliers and contractors, this points to growing commercial demand for battery storage and utility-scale solar, while tariff and import-cost pressures may affect North American solar projects. The signal identifies no government solicitation or contract award; its relevance is the changing economics that may shape energy supply choices for data centers and related infrastructure.

- Energy suppliers and contractors can use the reported cost comparison when assessing battery storage and solar proposals against gas-fired generation for data-center power needs.
- Procurement teams evaluating energy supply options should account for turbine lead times and price increases alongside storage costs.
- Businesses pursuing North American solar projects should factor in the reported tariff and import-cost pressures; the signal does not specify particular tariffs or quantify their impact.

**Jurisdictions:** international
**Industries:** Energy & Utilities, Information Technology
**Topics:** Digital Infrastructure
**Published:** October 09, 2026

### Key Quotes
> This economic shift is decisive and widening.
> — Ahmed Jameel Abdullah, Principal Analyst at Wood Mackenzie

### Sources
- [Batteries are now cheaper than natural gas turbines used at many data centers | TechCrunch](https://techcrunch.com/2026/10/09/batteries-are-now-cheaper-than-natural-gas-turbines-used-at-many-data-centers) - TechCrunch