Battery Energy Storage Systems (BESS) are getting more attention as diesel generators face growing pushback about air quality, noise, and high maintenance. Increasingly, data center operators are considering these systems for instant, zero-emission backup power, as well as revenue adds through enhanced grid services.

To follow up on yesterday’s anticipated financial earnings reports from Meta, Microsoft, Alphabet and Amazon, we see that spending as a percentage of revenue was significantly higher than industry averages.

We are currently in the peak of this quarter’s earnings season, and Microsoft, Alphabet, Amazon, and Meta’s anticipated reports have investors bracing for a combined 2026 Capex exceeding $600–700 billion.