Ford Motor Co. is expanding its focus on energy storage solutions to capture growth from the AI boom, mirroring Tesla’s successful pivot. The strategy targets data center power needs with scalable battery systems.
- Ford plans $450 million investment in energy storage by 2026
- Targeting 2 gigawatt-hours annual production capacity by 2026
- Energy storage units priced at $200–$300/kWh
- Projected annual revenue from storage: $600M–$900M by 2027
- Supports up to 500 AI data center facilities at 4 MW each
- Global data center energy storage market expected to grow to $38B by 2030
Ford Motor Co. is advancing its energy storage business as a key lever to participate in the accelerating AI infrastructure demand. The company is developing large-scale battery systems tailored for data centers, where AI workloads require reliable, high-capacity power. This shift aligns with growing industry pressure to support AI compute farms with resilient electrical infrastructure. The move is underscored by Ford’s planned investment of $450 million into its energy storage division by 2026, aimed at scaling production capacity to 2 gigawatt-hours annually. This output would support approximately 500 data center facilities, assuming an average power demand of 4 megawatts per site. Ford’s strategy leverages its existing battery manufacturing capabilities from its electric vehicle (EV) operations, including facilities in Michigan and Kentucky. Tesla’s success in the energy storage market—where its Megapack units have secured contracts with Amazon, Google, and Microsoft—has demonstrated the profitability of integrating battery tech with AI infrastructure. Ford’s entry could disrupt the sector, especially as AI-driven data center construction accelerates. Industry estimates project the global energy storage market for data centers to grow from $12 billion in 2025 to $38 billion by 2030. The expansion may also influence Ford’s financial profile, potentially improving margins on its battery division, which has historically operated at a loss. With energy storage units priced between $200 and $300 per kilowatt-hour, Ford could see incremental revenue of $600 million to $900 million annually by 2027, depending on market uptake.