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Home - Policy - Energy storage is changing the location of data centers under US regulatory pressure – SPE
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Energy storage is changing the location of data centers under US regulatory pressure – SPE

solarenergyBy solarenergyOctober 20, 2025No Comments1 Min Read
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Power outage regulations and slow permitting are driving US data centers toward storage-backed, grid-independent designs.

October 20, 2025
Phoebe Skok

Image: Bloom Energy, CC BY 2.0, via Wikimedia Commons

By ESS news

In Texas, a new kind of reliability standard is changing where data centers choose to build and how they power their operations. Under a “kill switch” law passed earlier this year, utilities can forcibly shut down large, non-critical industrial users, such as hyperscale data centers, during electrical grid emergencies to keep electricity flowing to the greatest number of people.

“Utilities across the country are warning operators to be prepared for sudden power outages,” explained James Roth, head of global policy and government affairs at Bloom Energy. He told it ESS news that for operators with contractual uptime obligations, the risk of sudden shutdowns is “simply untenable.”

To read further, visit our ESS news website.

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