Energy storage reshapes data center siting amid US regulatory pressure

<p class="p1"><span class="s1">Power cut regulations and slow permitting are driving US data centers toward storage-backed, grid-independent designs.</span></p><p><strong>From <a href="https://www.ess-news.com/2025/10/20/why-energy-storage-is-increasingly-dictating-data-center-site-selection/" rel="noopener" target="_blank">ESS News</a></strong></p>
<p>In Texas, a new kind of reliability standard is reshaping where data centers choose to build and how they power their operations. Under a “kill switch” law that was adopted earlier this year, utilities can forcibly disconnect large, noncritical industrial users like hyperscale data centers during grid emergencies to keep electricity flowing to the largest number of people.</p>
<p>“Utilities across the country are warning operators to be ready for sudden power shutoffs,” explained James Roth, the head of global policy and government affairs at Bloom Energy. He told <strong>ESS News</strong> that, for operators with contractual uptime commitments, the risk of sudden shutoffs is “simply unsustainable.”</p>
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