Why is the U.S. Telecom Industry Turning to Battery Energy Storage Systems?

While streaming a video, making a call, or sending a text, we do not think about power. Do we? We assume the network just works. However, behind every seamless connection lies a complex infrastructure, and at the heart of it is energy.

As 5G expands, cloud usage explodes, and consumers demand 24/7 connectivity, one critical question looms large: What happens when the power goes out? The Battery Energy Storage System (BESS) provides the answer.

BESS is a game-changing technology that is quietly transforming the U.S. telecom sector. It is emerging as a strategic powerhouse, ensuring network resilience, lowering energy costs, and driving sustainability efforts. The U.S. battery energy storage system market stood at $711.9 million in 2023 and is expected to reach $4.4 billion by 2030, growing at a significant CAGR of 30.5%. The telecom sector was pegged at $24.2 million in 2023.

From remote towers in Montana to urban 5G hubs in New York City, telecom operators are turning to advanced battery storage to keep signals strong, operations green, and customers connected, even when the grid falters. It is essential for staying competitive in a sector where milliseconds matter and downtime is expensive.

Why BESS Matters for Telecom Operators

The deployment of Battery Energy Storage Systems (BESS) is a strategic business decision. As operators navigate a telecom market defined by 5G expansion and rising energy costs, BESS offers multifaceted advantages.

• Enhanced Operational Continuity and Uptime: Downtime means revenue loss in a hyper-connected world. Whether it is call drops, data disruptions, or tower blackouts, service interruptions can damage customer trust and result in costly SLA (Service Level Agreement) penalties. BESS acts as a reliable backup. It ensures uninterrupted operation during grid outages, natural disasters, or unstable power conditions. This is especially crucial in rural or disaster-prone areas where grid infrastructure is not robust.
• Significant Cost Optimization: BESS allows telecom operators to participate in peak shaving—storing electricity when it's cheap (off-peak hours) and using it during peak pricing periods. This strategic energy management leads to substantial reductions in electricity bills. BESS also reduces dependence on diesel generators, cutting fuel costs, logistics challenges, and routine maintenance expenses.

A prime example is DESTEN’s battery energy storage system units . In January 2024, the company announced the deployment of its 28 kWh BESS units for both on-grid and off-grid cell towers. These compact systems offer ultra-fast charging capabilities and have demonstrated a significant reduction, over 60%, in diesel dependency for off-grid towers, marking a substantial step toward greener telecom infrastructure.

• Compliance with ESG Mandates and Green Goals: ESG frameworks influence business decisions, investment flows, and regulatory pressures. Integrating BESS helps telecom firms reduce carbon emissions, meet renewable energy targets, and minimize reliance on diesel-based power sources. This not only improves the company’s public image but also ensures alignment with federal and state clean energy policies.

In July 2023, Ericsson  implemented a microgrid at its 5G center in Plano, Texas. Powered by a solar array and battery storage, the setup allows the site to operate off-grid for up to 24 hours, enhancing energy efficiency and network resiliency.

• Attracting Investment and Strategic Partnerships: Investors today are prioritizing companies with clear decarbonization roadmaps and future-ready infrastructure. Telecom firms that proactively adopt BESS signal financial prudence and a commitment to innovation. Both of these are attractive traits for institutional investors, ESG funds, and infrastructure partners.

Caban Systems , a U.S.-based leader in battery energy storage solutions for telecom infrastructure, announced the successful closure of a $51 million funding round in January 2025. This substantial investment underscores the growing confidence in BESS technologies as critical components for modernizing telecom networks.

The Bottom Line

BESS enables telecom companies to design modular and scalable network deployments, especially useful for remote tower rollouts. Instead of investing in full-scale power infrastructure upfront, operators can gradually scale their power support as the network grows, aided by modular battery systems. This flexibility is vital in the age of small-cell deployments for 5G and beyond. Investments in BESS technologies are not only driving innovation in energy storage but also fostering critical partnerships essential for the evolution of telecom infrastructure. This is why most Americans are supporting BESS sites  in their local community today.