Utility-scale Battery Energy Storage Systems (BESS) developer GridStor has secured a $50 million credit facility facility from German Landesbank NORD/LB to help meet the growing demand from the data center and utility sectors.

“We have taken proactive steps to ensure tax credit eligibility for our project pipeline, and we anticipate more later-stage project acquisitions to provide cost-effective solutions to utility and data center customers,” said Frank Burkhartsmeyer, CFO of GridStor.

The letter of credit follows a $55 million debt financing agreement between the two companies to enable the completion of the 60MW/160MWh Goleta Energy Storage project in Santa Barbara County, California.

“We are proud to continue our partnership with NORD/LB as we develop battery energy storage projects across North America,” said Chris Taylor, CEO of GridStor. “We appreciate their commitment, which enables us to unlock the capital we need to accelerate projects to meet the urgent needs of utility and data center customers.”

In January, the firm acquired a 200MW/800MWh BESS project in Oklahoma from Black Mountain Energy Storage, which is set to support data center growth in Eastern Oklahoma, where multiple data centers are already operating and more are in development.

Headquartered in Portland, Oregon, GridStor is a developer of BESS and an independent power producer. The company’s project pipeline currently exceeds more than 3GW of projects across the western and southern US in late-stage development or under construction.

The company’s focus on the data center market reflects a broader trend within the sector, as more and more BESS developers target this market as an area of growth. In June, FlexGen partnered with Rosendin on the development of a utility-scale BESS designed to replace traditional UPS infrastructure in data centers.