Battery storage projects advance in West Valley as data center demand surges Article originally posted on Phoenix Business Journal on September 4, 2026 A handful of new battery energy storage system facilities are on tap around metro Phoenix as demand swells for power needed to operate future data centers while ensuring grid reliability. Right now, Arizona is leading the country for battery storage capacity growth, with 6.2 gigawatt-hours added in the second quarter of this year, according to a U.S. Energy Storage Market Outlook report by the Solar Energy Industries Association and Benchmark Mineral Intelligence. Two projects in the West Valley that already have interconnection plans with utilities Salt River Project and Arizona Public Service recently cleared initial city approvals, while another city just codified an updated zoning ordinance specifically targeting battery energy storage system, or BESS, projects. Barrel Cactus Energy Storage in Peoria The Barrel Cactus Energy Storage is being proposed in Peoria on a 14-acre site adjacent to a planned Aligned Data Center campus. It’s located at 75th and Olive Avenues, and the new facility would have 120 megawatts of battery storage capacity across 328 battery units. It would also include an electrical interconnection line to SRP’s Agua Fria Substation southeast of the site. Peoria’s Planning and Zoning Commission recommended approval at an Aug. 20 meeting. The site is owned by Van Tuyl Companies, and Plus Power – a private firm that develops, owns and operates BESS projects – is the proposed developer. Plus Power currently has two BESS facilities in Arizona – its Sierra Estrella project in Avondale, which is a 250 MW capacity facility on an 11-acre site that started operating in 2024. It connects to nearby Salt River Project line but will also directly support the future Prime Data Centers campus next door. Find Complete Article Here: https://www.bizjournals.com/phoenix/news/2026/09/02/west-valley-battery-energy-storage-bess-projects.html