GM pushes into battery storage as data center power needs surge
Synopsis
General Motors is expanding its energy storage business through new battery partnerships and sodium-ion technology aimed at utilities and data centers. The strategy reflects growing electricity demand linked to artificial intelligence infrastructure, while positioning GM beyond its traditional automotive business through grid-scale storage and vehicle-to-grid capabilities.
Besides going big on electric cars, GM is ramping up its presence in energy storage, banking on the escalating demand for electricity from artificial intelligence and data centers in the US and other major markets.
The automaker has announced a strategic investment and partnership with Peak Energy, a company developing stationary energy storage systems using sodium-ion battery technology. The batteries are designed to be installed in commercial projects, utility networks and data center operations rather than for use in passenger cars.
This venture introduces a new dimension to GM Energy, a business unit launched in 2022 to offer a portfolio of products for residential, commercial, and utility clients.
Utilities scramble for more power to meet soaring demand
The announcement comes at a time when governments, utilities, and technology companies are seeking to boost supply from various sources of reliable power to cope with growing electricity demand from AI infrastructure.
Electricity demand from data centers is expected to more than double by 2030, according to a report by the International Energy Agency titled Electricity 2026. While the US is currently the leading consumer of data center capacity, the demand in Australia, India and other Southeast Asian economies has been on the rise as they increasingly draw investment to meet growing demand for AI and cloud services.
Battery storage solutions are increasingly seen as a way to balance electricity demand and supply during periods of high demand. GM believes that the use of more abundant materials can make sodium-ion batteries an attractive solution for large-scale storage.
Expanding an energy business
Apart from its deal with Peak Energy, GM is continuing its collaboration with Redwood Materials and LG Energy Solution as part of its broader push into the energy storage domain. The company is also extending its efforts in vehicle-to-grid technology.
In the US, more than 250,000 GM electric cars are already equipped with bidirectional charging capabilities, which allow the batteries installed in them to also supply electricity to the grid or a home.
Under optimal conditions, GM estimates that the combined capacity of this electric vehicle fleet could power roughly 120,000 homes for a week. GM's expansion into the energy storage space is taking place amid an accelerating global surge in deployments, fueled by the transition to renewable energy, grid modernizations and an increased demand for power as AI and data center operations expand.
NEF, battery storage installations reached record levels last year, driven by the energy sector's rapid transition and rising energy needs for data centers and other infrastructure projects.
In the fourth quarter of 2025, GM posted revenues of $47.7 billion and a net income attributable to stockholders of $6 billion, highlighting the financial capacity of the company to pursue its endeavors in energy storage markets.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
