Grid-scale energy storage will play a crucial role in rising data centre energy demand

New IEA report highlights a surge in demand from AI-driven data centres, underscoring the urgent need for clean, flexible grid-scale energy solutions.

The global rise in artificial intelligence (AI) is expected to bring about a sharp increase in electricity use, particularly from data centres. According to the International Energy Agency (IEA), data centre electricity demand could more than double by 2030, fuelled by the growing need to process and store vast amounts of data. 

If this demand is met using fossil fuels, it will lock in higher emissions and risk undermining international climate goals. The IEA’s latest Energy and AI report serves as a clear warning: unless data centre expansion is matched by a transition to clean and flexible energy, the climate cost will be significant. 

The need for flexibility at scale 

Electricity grids around the world are beginning to feel the strain of rising demand. Data centres, which require constant, reliable power, are becoming one of the largest sources of new demand. 

This is happening just as many grids are transitioning away from fossil fuels towards variable renewable energy. Wind and solar are essential for decarbonisation, but they also make power systems more complex to manage due to their intermittency.  

What’s urgently needed is the flexibility to store and shift energy - at scale. 

Is grid-scale storage the missing link? 

Grid-scale energy storage offers a critical solution to this challenge. At Innovatium, we’ve developed a new grid-scale solution based on our multi award-winning PRISMA Liquid Air Energy Storage (LAES) technology. It has been adapted and scaled up to act as a long-duration energy store that can charge and discharge multiple times a day. 

During periods of low demand, PRISMA takes excess electricity (either from the grid or onsite renewables), and uses it to convert ambient air into cold, liquefied air. The compact liquid air can be stored in huge volumes in a thermal tank.  

During peak electricity demand (when data centres need more power), the liquid air is transformed back into a gas. This gas drives a turbine, producing the required electricity at speed.   

In short, PRISMA turns stored energy into power when it’s most needed. This flexibility makes it ideal for supporting data centres and other high-energy industries as they balance increasing energy demands with the need to decarbonise.  

Unlike lithium-ion batteries, our grid-scale solution is longer lasting (over 20 years), and better suited to extended storage periods of 8 to 100+ hours. It also avoids the environmental issues associated with battery materials and disposal. 

A word from Innovatium’s CEO 

Simon Branch, CEO of Innovatium, commented: 

"This is a moment of truth for the energy and tech sectors. AI has huge potential, but if data centre growth is powered by fossil fuels, we risk taking a step backwards on climate ambitions. Grid-scale storage technology is the missing piece that can enable clean, reliable electricity around the clock – and we see PRISMA as firmly at the centre of the solution. We have found a way to give data centres the flexibility they need, without compromising their net zero ambitions." 

Looking ahead 

The IEA is calling for stronger collaboration between policy makers, energy providers and the tech sector. We agree. To future-proof digital growth, we must invest in technologies that strengthen the grid, decarbonise supply and protect energy security. 

At Innovatium, we’re proud to be part of that solution. As data centres continue to expand, we must ensure they are powered not just by innovation, but by sustainable energy. 

Read the full IEA Energy and AI report here. 

Get in touch with our team to learn more about our grid scale solutions