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Economics, Business & Work 2026-09-09 00:00 UTC edition Story 24 of 24 Gate: passed

ON.energy Deploys Battery Systems to Stabilize AI Data Center Power Loads

The company is using series-connected battery technology to decouple hyperscale data centers from the grid and mitigate the impact of volatile AI training workloads.

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ON.energy Targets AI Data Center Power Stability

AI training workloads are highly volatile, causing sudden power demand drops of 70-90% that can destabilize local electrical grids. To prevent this, Miami-based ON.energy is deploying series-connected battery systems that act as an electrical buffer between data centers and the grid.[1][2][3]

The company's flagship product, called AI UPS, operates in series to electrically disconnect the grid from the actual computing load. This setup makes the data center's rapid power fluctuations virtually invisible to grid operators. The system runs on proprietary software called ON.command to manage the power flows.[4][5]

ON.energy has already signed a 5 gigawatt deal with Crusoe to deploy these systems, and has more than 3 gigawatts of capacity operating or under construction. This expansion follows technical validation at the Department of Energy's Flatirons Campus, supporting the idea that these facilities can cooperate with local utilities. As Alan Cooper notes, "Data centers don't have to be a liability for the grid."[6][7][8]

Key takeaways

  • AI training workloads create massive, rapid fluctuations in power demand, with drops of 70-90% that current grid infrastructure is not designed to handle. 1 source
  • ON.energy's AI UPS operates in series, creating an electrical 'firewall' that decouples the data center load from the grid, making the data center effectively invisible to grid operators. 1 source
  • The company has transitioned from a traditional battery storage developer to a technology company with proprietary hardware and software (ON.command) to ensure supply-chain certainty. 1 source
  • ON.energy has largely bootstrapped its growth, focusing on disciplined capital allocation and extensive technical validation at the DOE's Flatirons Campus. 1 source
  • The company is moving toward an 'assets as a service' model, allowing customers to shift capital expenditure to operational expenditure for their power infrastructure. 1 source
  • Evaluate series-connected battery architectures for hyperscale data center projects to mitigate grid interconnection bottlenecks and improve power quality. 1 source

Notable quotes

“Data centers don't have to be a liability for the grid.”
— Alan Cooper

What’s unresolved

  • Specific regulatory frameworks required to incentivize data centers as active grid participants.
  • Long-term scalability of the 'assets as a service' model across diverse global power markets.

Citations

  1. [1] Turning Data Centers Into Grid Assets with ON.energy ON.energy is a Miami-based company building battery-backed power systems for AI data centers. Manifest ID 1788901515751424306 - MCJ Inevitable Podcast - interrogate via MCP
  2. [2] Turning Data Centers Into Grid Assets with ON.energy The company's flagship product, AI UPS, acts as a buffer between the grid and data centers. Manifest ID 1788901515751424306 - MCJ Inevitable Podcast - interrogate via MCP
  3. [3] Turning Data Centers Into Grid Assets with ON.energy AI training workloads can cause demand drops of 70-90%. Manifest ID 1788901515751424306 - MCJ Inevitable Podcast - interrogate via MCP
  4. [4] Turning Data Centers Into Grid Assets with ON.energy ON.energy's AI UPS operates in series, electrically disconnecting the grid from the load. Manifest ID 1788901515751424306 - MCJ Inevitable Podcast - interrogate via MCP
  5. [5] Turning Data Centers Into Grid Assets with ON.energy ON.energy's software control system is called ON.command. Manifest ID 1788901515751424306 - MCJ Inevitable Podcast - interrogate via MCP
  6. [6] Turning Data Centers Into Grid Assets with ON.energy ON.energy signed a 5 gigawatt deal with Crusoe to deploy AI UPS. Manifest ID 1788901515751424306 - MCJ Inevitable Podcast - interrogate via MCP
  7. [7] Turning Data Centers Into Grid Assets with ON.energy ON.energy has more than 3 gigawatts of capacity operating or under construction. Manifest ID 1788901515751424306 - MCJ Inevitable Podcast - interrogate via MCP
  8. [8] Turning Data Centers Into Grid Assets with ON.energy ON.energy conducted technical validation at the Department of Energy's Flatirons Campus. Manifest ID 1788901515751424306 - MCJ Inevitable Podcast - interrogate via MCP