North America-made ESS system underscores Korean battery maker's growing role in AI-driven energy infrastructure
LG Energy Solution will supply batteries for Google’s largest solar and energy storage project, extending its push into power infrastructure tied to surging demand from AI data centers, industry sources said Wednesday.
Google and renewable energy developer Cypress Creek Energy unveiled the Steel River Energy Center in Arkansas on Tuesday. The project will initially pair 1.6 gigawatts of solar generation with about 2 gigawatt-hours of battery storage before expanding to 2.5 GW of solar and 2.9 GWh of storage by 2029.
LG Energy Solution is expected to supply its North America-made JF2 DC Link system, which uses lithium iron phosphate batteries. Sources estimate the order is worth several hundred billion won.
Google has agreed to purchase all electricity generated during the project’s initial phases under a long-term virtual power purchase agreement as it seeks to secure power for expanding data center operations and meet its clean energy goals.
The development will be the largest solar and battery storage project in Google’s global portfolio and is expected to generate enough electricity to power more than 315,000 homes annually.
Big tech companies are racing to lock in reliable power supplies for artificial intelligence infrastructure. Google’s electricity consumption rose 37 percent last year, while Microsoft’s increased 24 percent, according to BloombergNEF.
Google, Meta, Amazon and Microsoft together accounted for 49 percent of global corporate renewable energy purchase agreements last year, reflecting their growing role in large-scale clean energy development.
For LG Energy Solution, the order follows a deal secured in May for a data center-related project led by US utility DTE Energy, giving the Korean battery maker another foothold in AI-driven energy infrastructure. The agreement also highlights the value of LG Energy Solution’s North American manufacturing base as the United States tightens restrictions on supply chains linked to China.
Google and Cypress Creek said key equipment for the project, including batteries, solar panels and structural steel, would be sourced through North American supply chains. The project will use solar modules from First Solar and locally sourced steel.
LG Energy Solution currently produces energy storage batteries at four sites in North America: Michigan, Ohio, Tennessee and Canada. It plans to begin ESS battery production at its Lansing, Michigan, plant later this year.
The company aims to expand global ESS production capacity to more than 60 GWh by year-end, with over 50 GWh based in North America.
herim@heraldcorp.com