Ford Energy Takes Aim at Data Centre-Driven Storage Demand

Power is behind every hyperscale campus and colocation expansion.

As operators race to secure electricity for energy-intensive facilities, battery energy storage systems (BESS) are becoming a critical piece of the infrastructure puzzle.

Now, automotive giant Ford is making a significant move into that market.

The company has launched Ford Energy, a wholly owned subsidiary focused on manufacturing utility-scale battery energy storage systems, repurposing former electric vehicle battery production facilities in Kentucky to serve a rapidly expanding energy storage sector.

Ford plans to deploy at least 20GWh of battery storage capacity annually, with first customer deliveries expected in 2027.

The move reflects growing demand for technologies that can help stabilise grids, support renewable energy integration and provide backup power for demanding sectors, including data centres.

“Ford Energy allows us to maximise the value of our battery manufacturing capabilities,” says Lisa Drake, President of Ford Energy.

“We’re building a business focused first on utility-scale battery energy storage systems for large customers while also offering battery cells for residential energy storage solutions.”

From EV batteries to grid infrastructure

Rather than constructing a new manufacturing facility, Ford is repurposing existing battery production assets in Glendale, Kentucky.

The site was originally developed as part of BlueOval SK, a joint venture between Ford and South Korean battery manufacturer SK On.

Two of the project's three plants were intended to produce batteries for Ford's electric vehicle programme.

However, following Ford's US$19.5bn strategic reset announced in late 2025, the company shifted its EV strategy away from large electric trucks and commercial vans towards smaller EVs, hybrid vehicles and extended-range electric vehicles.

The joint venture was subsequently dissolved and workers at the Kentucky facility were laid off earlier this year.

Ford Energy has now given the site a new purpose, positioning it at the centre of the company's ambitions in energy infrastructure.

The decision comes as battery storage moves from a niche technology to a strategic necessity.

For data centre operators facing power constraints, storage systems can help manage peak demand and support participation in demand response programmes.

Data centre growth fuels storage demand

Demand for battery storage has accelerated globally as renewable energy deployment expands and electricity consumption rises.

Large-scale data centres require significant power capacity and operators are increasingly exploring ways to enhance grid reliability while reducing exposure to electricity market volatility.

Battery energy storage systems are emerging as an answer.

Modern installations can store excess electricity during periods of low demand and release it when consumption spikes, helping to balance both site-level and grid-wide requirements.

At the same time, advances in lithium-ion battery technology and newer chemistries have significantly reduced costs.

Average global BESS prices are now roughly one-third of their 2020 levels, helping drive adoption across utilities, energy developers and large industrial users.

In the US alone, battery storage deployments are forecast to grow by as much as 70GWh during 2026, according to industry estimates.

Yet manufacturing capacity remains constrained.

Research from Wood Mackenzie suggests domestic battery cell production met only around 6% of US demand in 2025, creating opportunities for new suppliers entering the market.

EDF agreement provides early momentum

Ford Energy has already secured a major customer.

EDF power solutions North America has signed a five-year framework agreement allowing it to procure up to 4GWh of battery storage systems annually from Ford Energy, representing a potential total volume of 20GWh over the life of the deal.

Deliveries under the agreement are expected to begin in 2028.

“As we continue to expand our energy storage portfolio, supply chain reliability and product quality are paramount,” says Tristan Grimbert, CEO of EDF power solutions North America.

“Ford Energy’s commitment to domestic manufacturing and its rigorous approach to traceability and lifecycle support align with the standards we hold across our portfolio.

"This framework agreement gives us the supply visibility and product confidence we need to execute at the pace the energy transition demands.”

Built for large-scale applications

Ford Energy's flagship offering is the DC Block, a standardised 20-foot containerised battery storage system designed for utility-scale deployments.

Each unit provides 5.45MWh of storage capacity using lithium iron phosphate battery cells and supports a range of applications including backup power, frequency regulation, voltage support, peak load shifting and microgrid integration.

For the data centre sector, those capabilities are becoming more valuable. Ford's entry into the market signals just how important that opportunity has become.