The Central Power Station of the Brooklyn Rapid Transit Company (BRT) was built in 1901 to replace a powerhouse that had burned down in Ridgewood, Queens the year before. This facility was to take over the functions of the burnt-out powerhouse and provide energy to a new sprawling set of BRT lines. Brooklyn Rapid Transit selected the Gowanus Canal location to provide the station with easy access to coal, water, and other necessary resources. According to the building's 2019 Landmark Designation report, it is considered "of the most prominent buildings constructed along the Gowanus Canal in the first half of the 20th century." Engineer Thomas E. Murray is credited as the designer of this Classical and Romanesque Revival Style masonry structure.

As technology progressed, the building's massive boiler house eventually became obsolete and was demolished in the 1950s. Nevertheless, the power station would go on to supply energy to the BMT Fifth Avenue line even after the BRT dissolved. It ended its career serving New York's consolidated transit system as part of MTA's Fourth Avenue Line. In 1975, the city sold the building and it was briefly found use as a paper recycling plant.

Beginning in the late 1990s, the building stood abandoned as a lot of light industry left Gowanus. The power station's vacant interior became the perfect canvas for graffiti artists, and its cornice served as a billboard for political messages, like "End stop & frisk. Hands off the kids!" and "Open your eye girl," that survive to this day. By 2001, runaways and homeless teenagers converted the building's cavities into a community, christening it the "Batcave," an allusion to the animals who lived in the beams of the massive structure. The "cave" was furnished with street-scavenged mattresses, outfitted with rainwater supplied toilets, a fridge, and a TV that was powered (by means of 400-feet of extension chord) by the Carroll Street Bridge. According to Zachary Edminster, a previous tenant of the "Batcave," the community who settled there had a strict no hard drugs policy. Eventually, a 2006 New York Daily News article exposed the community of homeless residents. Following the article, the power station was then partially sealed off to discourage trespassers.

The squatters of the building trickled out, though the "Batcave" was still utilized as a destination for underground parties and events. The graffiti-covered walls and jagged ceiling often enticing urban explorers and artists.

In 2012, a philanthropist bought the building with plans to turn it into Powerhouse Arts, a fabrication and education space for artists. The reincarnation of the "Batcave" is slated to open in 2021, with an addition where the boilerhouse stood designed by starchitects Herzog & de Meuron.