By Colleen Howe

BEIJING (Reuters) -AI data centre-fuelled power demand growth in the U.S. is likely to drive a “boom cycle” for energy storage in the next five years as more storage is needed to smooth out fluctuations from wind and solar generation, according to UBS Securities.

Global energy storage demand could increase 40% globally year-on-year in 2026, Hong Kong-based UBS Securities analyst Yan Yishu told a media briefing on Wednesday.

“The demand for AI data centres in the U.S. is very robust, but electricity is the biggest bottleneck.”

Renewables are the only power-generating segment expected to grow significantly in the next five years in the U.S., and because they produce power intermittently, the grid needs more batteries to store that power.

The U.S. market is key for Chines

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