Data Center Batteries Industry Research Report 2025-2030: Market Surges on Lithium-ion Advancements, AI/5G Power Demands, and Rising Deployment Across Hyperscale, Colocation, and Edge Facilities – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Data Center Batteries – Global Strategic Business Report” has been added to ResearchAndMarkets.com’s offering.


The global market for Data Center Batteries was estimated at US$3.2 Billion in 2024 and is projected to reach US$4.1 Billion by 2030, growing at a CAGR of 3.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions.

Data center batteries are a fundamental component of uninterruptible power supply (UPS) systems, ensuring continuous operation during power outages and fluctuations. With the exponential growth of cloud computing, edge computing, and hyperscale data centers, reliable energy storage solutions are essential to maintaining uptime and preventing data loss.

The increasing shift toward green energy and sustainability initiatives has also influenced data center operators to invest in energy-efficient battery technologies. Lithium-ion (Li-ion) batteries have gained prominence over traditional lead-acid batteries due to their longer lifespan, higher energy density, and reduced maintenance requirements. Additionally, advancements in battery management systems (BMS) are enhancing efficiency, allowing for real-time monitoring of power storage and consumption.

What Is Driving the Growth of the Data Center Batteries Market?

The growth in the data center batteries market is driven by increasing data center capacity expansion, advancements in lithium-ion battery technology, and regulatory support for energy-efficient storage solutions. The rise of AI, 5G, and high-performance computing has increased power consumption, necessitating robust backup solutions to ensure uninterrupted operations.

End-use expansion is another key driver, with data center batteries being deployed in colocation facilities, edge computing sites, and hyperscale cloud platforms. The integration of battery energy storage with renewable energy systems is further optimizing power management and cost efficiency. Additionally, AI-driven analytics are enhancing battery performance monitoring, reducing downtime risks, and improving energy optimization strategies. As data centers continue to grow, the demand for advanced battery solutions is expected to surge, shaping the future of power resilience in digital infrastructure.

What Are the Latest Innovations in Data Center Battery Technologies?

Battery technology for data centers has evolved significantly, with lithium-ion, solid-state, and flow batteries emerging as viable alternatives to conventional lead-acid systems. One of the most notable advancements is the use of lithium iron phosphate (LiFePO4) batteries, which offer improved thermal stability and a longer cycle life. These batteries reduce operational costs while ensuring higher safety standards in data center environments.

Another key innovation is the integration of AI-driven battery management systems (BMS) that optimize charging cycles, prevent overloading, and enhance predictive maintenance. Additionally, hybrid energy storage solutions that combine battery systems with renewable energy sources, such as solar and wind power, are gaining traction. These hybrid solutions reduce dependency on diesel generators, aligning with sustainability goals and regulatory compliance initiatives.

How Are Market Trends and Regulatory Guidelines Influencing Data Center Battery Adoption?

The increasing focus on sustainability and carbon footprint reduction has led to the adoption of energy-efficient and recyclable battery technologies. Regulatory frameworks such as the European Green Deal and the U.S. Department of Energy (DOE) standards are driving data centers to adopt eco-friendly power backup solutions. Additionally, tax incentives and government subsidies for energy storage investments are accelerating the transition to lithium-ion and alternative battery chemistries.

Market trends indicate a shift toward modular battery backup systems, enabling scalable energy storage for hyperscale and colocation data centers. The rise of edge data centers, which require compact and high-performance energy solutions, has also fueled demand for lightweight and high-capacity batteries. Additionally, strategic partnerships between data center operators and energy storage providers are fostering innovation in next-generation power backup solutions.

Key Questions Answered:

  • How is the Global Data Center Batteries Market expected to evolve by 2030?
  • What are the main drivers and restraints affecting the market?
  • Which market segments will grow the most over the forecast period?
  • How will market shares for different regions and segments change by 2030?
  • Who are the leading players in the market, and what are their prospects?

Report Features:

  • Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
  • In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
  • Company Profiles: Coverage of players such as Active Power, C&D Technologies, CAP-XX, Contemporary Amperex Technology Co. Limited (CATL), Delta Electronics and more.
  • Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Key Insights:

  • Market Growth: Understand the significant growth trajectory of the Lead-Acid Battery segment, which is expected to reach US$2.3 Billion by 2030 with a CAGR of a 4.4%. The Lithium-Ion Battery segment is also set to grow at 3.6% CAGR over the analysis period.
  • Regional Analysis: Gain insights into the U.S. market, estimated at $882.1 Million in 2024, and China, forecasted to grow at an impressive 7.2% CAGR to reach $826.0 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Scope of Study:

  • Segments: Battery Type (Lead-Acid Battery, Lithium-Ion Battery, Nickel Zinc Battery, Other Battery Types); Application (Uninterruptible Power Supply Application, Energy Storage Systems Application, Backup Power Systems Application, Peak Shaving and Load Balancing Application)
  • Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Attributes:

Report Attribute Details
No. of Pages 220
Forecast Period 2024 – 2030
Estimated Market Value (USD) in 2024 $3.2 Billion
Forecasted Market Value (USD) by 2030 $4.1 Billion
Compound Annual Growth Rate 3.9%
Regions Covered Global

Key Topics Covered:

MARKET OVERVIEW

  • Influencer Market Insights
  • Tariff Impact on Global Supply Chain Patterns
  • Data Center Batteries – Global Key Competitors Percentage Market Share in 2025 (E)
  • Competitive Market Presence – Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)

MARKET TRENDS & DRIVERS

  • Rising Data Center Power Requirements Driving Need for Efficient Energy Storage
  • Growing Adoption of Lithium-Ion Batteries Over Traditional Lead-Acid Systems
  • Increased Demand for Modular and Scalable UPS Battery Solutions
  • Integration of Battery Monitoring Systems Enhancing Predictive Maintenance
  • Emergence of Smart Battery Management Platforms Improving Operational Uptime
  • Use of Batteries in Hybrid Grid and Backup Configurations for Peak Shaving
  • Growth of Edge Data Centers Requiring Compact and Durable Battery Units
  • Surging Interest in Sustainable and Recyclable Battery Chemistries
  • Expansion of Hyperscale Data Centers Accelerating Battery Procurement
  • Deployment of High-Density Racks Creating Demand for Space-Saving Batteries
  • Use of AI to Optimize Battery Load Distribution and Lifecycle Performance
  • Growing Collaboration Between Battery OEMs and Colocation Providers
  • Increased Demand for Long-Life, High-Cycle Battery Systems in 24/7 Operations
  • Rising Investments in Fire-Safe and Thermally Stable Battery Designs
  • Role of Data Center Batteries in Supporting Renewable Integration and Microgrids

FOCUS ON SELECT PLAYERS: Some of the 48 companies featured in this Data Center Batteries market report include

  • Active Power
  • C&D Technologies
  • CAP-XX
  • Contemporary Amperex Technology Co. Limited (CATL)
  • Delta Electronics
  • East Penn Manufacturing
  • Energy Vault
  • EnerSys
  • Exide Technologies
  • Hitachi Energy
  • Leoch International Technology
  • LG Energy Solution
  • Natron Energy
  • Panasonic Corporation
  • Saft Groupe S.A.
  • Samsung SDI
  • Skeleton Technologies
  • Toshiba Corporation
  • Vertiv Holdings
  • ZincFive

For more information about this report visit https://www.researchandmarkets.com/r/fqmlh

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