Data Center Demand Drives $3.2B Energy Storage Deal, Navigating Tax Credit Complexities

Newark, NJ – October 30, 2025 – As data centers consume an ever-increasing share of global electricity, a new $3.2 billion partnership is emerging to address the growing demand for reliable, scalable energy storage. Star Charge Americas and Beneficial Holdings today announced a Master Service Agreement (MSA) for over 32.24 GWh of Battery Energy Storage Systems (BESS) projects across the United States and Puerto Rico, signaling a major investment in grid resilience and a strategic move to capitalize on the burgeoning data center market.

Beyond the sheer scale of the deal, experts say the partnership highlights a complex interplay of technological innovation, financial incentives, and regulatory hurdles – specifically, navigating the increasingly stringent rules surrounding ‘Foreign Entity of Concern’ (FEOC) designations and unlocking critical Investment Tax Credits (ITC).

“The demand for energy storage, particularly to support data centers, is exploding,” says an industry analyst familiar with the deal. “This isn’t just about building batteries; it’s about ensuring a stable and reliable power supply in an increasingly digitized world. The scale of this agreement suggests a long-term commitment to meeting that need.”

Powering the Digital Infrastructure

The partnership aims to deliver over 32 GWh of BESS capacity, enough to power hundreds of thousands of homes. However, the focus is squarely on supporting the energy-intensive operations of data centers, which currently account for 2-3% of global electricity consumption and are projected to see significant growth in the coming years. The deal comes at a critical time, as data centers grapple with increasing energy costs and a growing need for sustainable power solutions.

“Data centers are the backbone of the digital economy, but they also represent a significant energy footprint,” explains a source close to Beneficial Holdings. “This partnership is about providing a cleaner, more reliable, and more cost-effective energy source to power those operations.”

Star Charge Americas brings to the table its expertise in BESS technology and manufacturing, while Beneficial Holdings offers a proven track record in infrastructure development and project management. Together, the companies aim to deliver turn-key energy storage solutions tailored to the specific needs of data center operators.

Navigating the FEOC Landscape

However, the path to project completion isn't without its challenges. The energy sector is facing increasing scrutiny from policymakers concerned about national security. The U.S. government is actively identifying and restricting access to critical infrastructure for entities designated as ‘Foreign Entities of Concern’ (FEOCs). This presents a complex regulatory landscape for companies like Star Charge and Beneficial Holdings.

“Compliance with FEOC regulations is paramount,” notes a legal expert specializing in energy finance. “Companies need to conduct thorough due diligence to ensure that their supply chains and project partners don’t run afoul of these rules. Failure to comply can jeopardize access to vital tax credits and funding.”

The deal's success hinges on carefully navigating these regulations to unlock the benefits of the Investment Tax Credit (ITC). The ITC provides a significant tax credit for qualifying energy storage projects, making them more financially viable. However, eligibility requires strict adherence to FEOC rules and other requirements.

“The ITC is a game-changer for the energy storage industry,” says an analyst familiar with the deal. “It levels the playing field and makes these projects more competitive. But companies need to demonstrate that they’re in compliance with all applicable regulations to qualify.”

Beyond the Megawatts: Local Impact and Sustainability

While the partnership’s primary focus is on powering data centers, experts say the deal also has the potential to deliver broader economic and social benefits. The construction and operation of BESS projects will create jobs in local communities and boost economic activity. Additionally, the increased reliance on renewable energy sources will reduce carbon emissions and contribute to a more sustainable energy future.

“This isn’t just about building batteries,” explains a source close to the project. “It’s about creating a positive impact on local communities and building a more sustainable energy system. We’re committed to working with local stakeholders to ensure that these projects deliver long-term benefits.”

The partnership between Star Charge Americas and Beneficial Holdings represents a significant step forward in addressing the growing demand for energy storage. By combining technological expertise, financial innovation, and a commitment to sustainability, the companies are poised to play a key role in powering the digital infrastructure of the future – all while navigating the complex regulatory landscape and unlocking the potential of vital tax incentives. The success of this deal could pave the way for similar investments in energy storage, driving innovation and creating a more resilient and sustainable energy system for generations to come.