AI Power Demand Drives 37% US ESS Growth as Korean Battery Trio Accelerates North America Push

The Quick Take

• US ESS market is forecast to grow 37% to 70GWh in 2026 from 51GWh in 2025, driven by AI data center power demand
• Korean battery makers (LG, Samsung SDI, SK On) are accelerating North America ESS expansion as Chinese batteries face 40.9% tariffs vs 12.5% for Korean products
• Nvidia DSX Ready certification included battery storage as a first-category AI factory standard, formalizing the ESS-AI infrastructure link

The rapid expansion of AI data centers across North America is driving explosive growth in the energy storage system market, with US ESS installations forecast to rise 37% to 70GWh in 2026 and potentially reach 110-120GWh by 2030. Korean battery manufacturers LG Energy Solution, Samsung SDI and SK On are strategically positioning their North American production bases to capture this growth, leveraging a significant tariff advantage: Chinese lithium-ion batteries face a 40.9% tariff rate versus 12.5% for Korean products — a 28.4 percentage point advantage that materially improves price competitiveness. Nvidia formally incorporated battery energy storage systems into its DSX Ready AI factory certification program, cementing the ESS-AI infrastructure supply chain link.

The IRA-driven tailwinds for Korean ESS manufacturers include both the Advanced Manufacturing Production Credit and the Clean Power Investment Tax Credit, which stack with the tariff advantage to create a compelling cost structure for domestic US projects. This positions Korea battery three companies as likely primary beneficiaries of AI infrastructure capex that requires stable, certified power management solutions. The formalization of BESS as an Nvidia-certified AI factory component transforms ESS from an ancillary product into a required component for tier-one AI data center construction, expanding the addressable market and lengthening demand visibility for Korean battery makers.

Watch for quarterly ESS order book disclosures from LG Energy Solution, Samsung SDI and SK On — sustained North American ESS order growth above 30% YoY would confirm the structural demand shift. The macro variable is US clean energy policy continuity: any rollback of IRA production credits or changes to the tariff differential between Chinese and Korean batteries would directly impact the competitive advantage underpinning the North America expansion thesis. Monitor Nvidia DSX Ready certification adoption rates as a leading indicator of data center operators committing to standards-compliant ESS integration.

Synthesized from 2 sources.