Data centers batteries Market latest Statistics on Market Size, Growth, Production, Sales Volume, Sales Price, Market Share and Import vs Export 

Data centers batteries Market Summary Highlights 

The Data centers batteries Market is entering a structural expansion phase driven by hyperscale capacity additions, AI-driven computing intensity, grid instability, and stricter uptime requirements. By 2026, battery infrastructure is transitioning from conventional VRLA systems toward lithium-ion and advanced chemistries, supported by measurable improvements in energy density, lifecycle cost efficiency, and safety standards. 

The Data centers batteries Market Size is projected to reach approximately USD 9.8 billion in 2026 and is forecast to surpass USD 15.6 billion by 2030, reflecting a compound annual growth rate (CAGR) of nearly 12.3% during the 2026–2030 period. Growth is directly correlated with rising global data center power capacity, which is estimated to exceed 1,200 GW of installed IT load equivalent by 2026 when including hyperscale, colocation, and edge facilities. 

Battery backup durations are extending from 5–7 minutes (legacy UPS bridging) toward 10–15 minutes in high-density facilities, particularly those supporting AI workloads, where power stability margins are tightening. Lithium-ion adoption in new hyperscale deployments is projected to account for more than 68% of installations by 2026, compared to under 45% in 2023. 

The Data centers batteries Market is also influenced by renewable integration, microgrid adoption, and sustainability mandates. Operators are increasingly incorporating battery storage as part of broader energy management strategies, including peak shaving and demand response participation. 

Statistical Snapshot – Data centers batteries Market 

• The Data centers batteries Market Size is estimated at USD 9.8 billion in 2026. 

• CAGR of 12.3% expected between 2026 and 2030. 

• Lithium-ion batteries to account for 68%+ of new installations by 2026. 

• VRLA share expected to decline below 28% by 2027. 

• Hyperscale facilities to represent 52% of total battery demand by 2026. 

• Average battery runtime capacity increasing by 18–22% in AI-centric data centers. 

• Asia-Pacific projected to contribute 36% of incremental demand between 2026–2030. 

• Edge data centers to grow battery demand at 15% CAGR through 2030. 

• Modular UPS-battery integration to increase deployment efficiency by 25%. 

• Sustainability-linked procurement policies influencing over 40% of new contracts by 2026. 

AI Workload Expansion Driving High-Density Power Requirements in the Data centers batteries Market

The acceleration of AI infrastructure is fundamentally reshaping the Data centers batteries Market. GPU-intensive clusters are increasing rack power density from traditional 8–12 kW per rack to 30–80 kW per rack in advanced AI deployments. For instance, hyperscale AI training clusters commissioned in 2025 are operating at average densities above 45 kW per rack. 

Higher density translates directly into increased reliance on stable, high-performance battery backup systems. Voltage fluctuation tolerance is narrowing, as AI hardware is more sensitive to power disturbances. Consequently, battery systems are being engineered with faster discharge response times and improved thermal management. 

The Data centers batteries Market is witnessing a shift toward lithium-ion systems with higher cycle life—typically 2,500 to 3,500 cycles—compared to 300–500 cycles in traditional VRLA systems. This lifecycle improvement reduces replacement frequency by up to 60%, supporting total cost of ownership (TCO) optimization. 

For example, facilities supporting AI cloud services in North America are allocating 12–15% of total electrical infrastructure budgets to battery systems, compared to 8–10% in conventional enterprise data centers. This budgetary shift underscores the criticality of battery reliability in AI-focused deployments. 

As AI capacity continues to expand at an estimated 20% annual infrastructure growth rate through 2028, the Data centers batteries Market is positioned to scale proportionally. 

 Transition from VRLA to Lithium-Ion Reshaping the Data centers batteries Market

The transition from valve-regulated lead-acid (VRLA) batteries to lithium-ion chemistry represents a structural transformation within the Data centers batteries Market. By 2026, lithium-ion systems are projected to dominate new hyperscale installations due to: 

• 50–70% smaller footprint 

• 40–60% weight reduction 

• 2–3× longer service life 

• Reduced cooling requirements 

In urban colocation environments where floor space costs exceed USD 1,200 per square meter annually, footprint reduction directly enhances revenue-generating rack space. For instance, replacing a 1 MW VRLA battery room with lithium-ion alternatives can free up approximately 30–35% of space. 

The Data centers batteries Market is further benefiting from improved safety certifications and battery management systems (BMS) integration. Modern lithium-ion UPS batteries now include real-time thermal monitoring, predictive analytics, and fault isolation features, reducing fire risk incidents by an estimated 45% compared to early-generation systems. 

Lifecycle cost analysis indicates that while lithium-ion upfront costs remain 15–25% higher, total ownership costs over 10 years are 20–30% lower due to fewer replacements and reduced maintenance. 

This structural transition is accelerating procurement shifts across Europe and Asia-Pacific, where new builds increasingly exclude VRLA systems except in cost-sensitive tier-II markets. 

 Grid Instability and Energy Resilience Driving Growth in the Data centers batteries Market

Power grid volatility is intensifying globally. In 2025, grid disturbance frequency in certain regions of North America and South Asia has increased by approximately 12–18% year-over-year due to weather variability and load pressure. 

As a result, the Data centers batteries Market is increasingly aligned with resilience planning strategies. Battery systems are being designed for extended autonomy, especially in regions where generator start-up reliability is constrained by fuel logistics or environmental regulations. 

For example: 

• Backup runtime in mission-critical facilities is rising from 5 minutes to 12 minutes on average. 

• Hybrid battery–microgrid solutions are expanding at 14% annual growth. 

• Data centers participating in demand response programs are leveraging battery storage to offset peak tariffs by 8–12%. 

The Data centers batteries Market Size is expanding not only due to capacity additions but also due to increased battery storage per megawatt of IT load. In high-risk grid regions, battery capacity per MW has increased by 25% since 2023. 

Battery storage is also being integrated with on-site solar installations. Facilities in Southeast Asia and the Middle East are deploying 5–20 MW solar arrays paired with lithium-ion storage to stabilize load profiles and reduce diesel dependency. 

These resilience-driven investments are structural rather than cyclical, indicating long-term stability in the Data centers batteries Market. 

 Rapid Growth of Edge Data Centers Expanding the Data centers batteries Market Footprint

Edge data center deployment is accelerating at a projected 15% CAGR through 2030. These smaller facilities—typically 100 kW to 2 MW—require compact, maintenance-light battery systems. 

The Data centers batteries Market is adapting through modular battery cabinets, scalable UPS integration, and plug-and-play lithium-ion units. For example, telecom edge facilities upgrading for 5G traffic growth are expanding battery backup capacity by 20–30% to handle latency-sensitive workloads. 

Unlike hyperscale facilities, edge deployments often operate in remote or unmanned locations. Consequently: 

• Remote battery monitoring adoption has increased by 35% since 2024. 

• Predictive maintenance algorithms reduce unexpected battery failures by 28%. 

• Lithium-ion share in edge deployments exceeds 72% in new builds. 

Edge computing growth directly supports regional expansion of the Data centers batteries Market, particularly in Asia-Pacific and Latin America, where digital service penetration is rising rapidly. 

Battery vendors are also introducing standardized 50–150 kWh modular blocks to align with micro-edge clusters, improving deployment speed by 25% compared to custom VRLA installations. 

 Sustainability and Carbon Reduction Mandates Influencing the Data centers batteries Market

Environmental compliance and ESG targets are significantly influencing procurement decisions within the Data centers batteries Market. By 2026, more than 40% of hyperscale operators are incorporating lifecycle carbon footprint evaluation into battery selection criteria. 

Lithium-ion systems offer 30–40% lower lifecycle emissions compared to VRLA when considering replacement frequency and recycling efficiency. Additionally, recycling rates for lithium-ion batteries are projected to exceed 70% by 2028 due to improved material recovery technologies. 

For instance, data centers targeting net-zero operations by 2035 are integrating battery storage with renewable sourcing agreements. Battery systems enable energy shifting, allowing facilities to utilize renewable energy during off-peak generation hours. 

The Data centers batteries Market is also seeing early experimentation with alternative chemistries such as lithium iron phosphate (LFP), which offers enhanced thermal stability and longer lifespan. LFP adoption is projected to represent 38% of lithium-ion deployments by 2027. 

Energy efficiency improvements are quantifiable. Battery-integrated energy management systems reduce peak load draw by 6–10%, contributing to lower scope-2 emissions. 

The Data centers batteries Market Size continues to benefit from these structural sustainability drivers, as operators prioritize both uptime and carbon reduction performance metrics. 

Geographical Demand Dynamics in the Data centers batteries Market 

The Data centers batteries Market is geographically concentrated in regions with high hyperscale construction intensity, AI infrastructure expansion, and grid instability exposure. By 2026, North America, Asia-Pacific, and Europe collectively account for nearly 88% of total installed battery capacity supporting data centers. 

North America leads the Data centers batteries Market with approximately 34% revenue share in 2026. The United States alone is projected to commission over 35 GW of new data center IT load between 2025 and 2027, with battery capacity additions exceeding 4.8 GWh annually. For instance, hyperscale clusters in Virginia and Texas are increasing battery runtime configurations from 8 minutes to 12–15 minutes, raising per-MW battery capacity requirements by nearly 22%. As AI data centers exceed 50 kW per rack densities, battery bank sizing is scaling proportionally. 

Asia-Pacific represents the fastest expanding geography within the Data centers batteries Market, contributing approximately 36% of incremental global demand between 2026 and 2030. China, India, Singapore, Japan, and South Korea are driving installations. India’s data center capacity is forecast to surpass 3 GW IT load by 2027, with lithium-ion battery adoption rates above 70% in new facilities. For example, large colocation campuses in Mumbai and Chennai are deploying modular 1–2 MWh lithium-ion systems to address grid fluctuation frequency that has risen by nearly 15% year-over-year in peak demand seasons. 

Europe accounts for roughly 24% of the Data centers batteries Market in 2026. Germany, Ireland, the Netherlands, and the Nordic region are major contributors. Sustainability regulations are accelerating lithium iron phosphate (LFP) battery adoption, particularly in Scandinavian facilities integrating renewable-heavy power mixes. For instance, Sweden and Denmark are deploying battery storage with 10–20% higher energy capacity per MW to align with renewable intermittency. 

The Middle East is emerging as a strategic growth pocket. Countries such as the UAE and Saudi Arabia are expanding hyperscale campuses aligned with digital transformation programs. Battery runtime extensions of up to 15 minutes are becoming standard due to high ambient temperature grid stress conditions. Latin America and Africa remain smaller in absolute scale but are expanding at 14–16% CAGR as digital service penetration increases. 

The Data centers batteries Market therefore exhibits both volume concentration in mature regions and high-growth expansion in emerging digital economies. 

 Production Expansion in the Data centers batteries Market 

Global Data centers batteries production is scaling rapidly to match hyperscale deployment velocity. By 2026, total Data centers batteries production capacity is estimated to exceed 12 GWh annually dedicated to data center applications alone. Lithium-ion lines represent nearly 72% of Data centers batteries production, reflecting the structural shift away from VRLA. 

Asia-Pacific dominates Data centers batteries production, accounting for approximately 58% of global output. China, South Korea, and Japan lead cell manufacturing, while module assembly facilities are expanding in India and Southeast Asia. North America represents 22% of Data centers batteries production, driven by localization strategies aimed at reducing supply chain dependency. Europe accounts for nearly 16%, with an emphasis on LFP and sustainable chemistries. 

Data centers batteries production lead times have improved from 24–28 weeks in 2023 to 14–18 weeks in 2026 due to capacity additions and raw material stabilization. For example, lithium carbonate supply growth of nearly 18% between 2024 and 2026 has eased cost volatility, stabilizing upstream procurement. 

Vertical integration is increasing. Several battery manufacturers now control cell manufacturing, pack assembly, and battery management systems internally, reducing production cost per kWh by 12–15%. As a result, Data centers batteries production is becoming more standardized and modular, allowing faster deployment cycles. 

 Market Segmentation Structure in the Data centers batteries Market 

The Data centers batteries Market is segmented by battery type, data center type, application, runtime capacity, and geography. Structural shifts are visible across each category. 

Segmentation Highlights in the Data centers batteries Market 

By Battery Type 

• Lithium-ion: 68% share in 2026; projected to exceed 75% by 2028. 

• VRLA: 27% share in 2026; declining due to footprint constraints. 

• Nickel-zinc and emerging chemistries: ~5% share; niche deployments in high-temperature regions. 

By Data Center Type 

• Hyperscale: 52% of demand in 2026. 

• Colocation: 31% share; strong in urban clusters. 

• Enterprise: 10% share; gradually declining. 

• Edge: 7% share; fastest growth at 15% CAGR. 

By Application 

• UPS backup systems: 84% of installations. 

• Grid-interactive storage: 9%. 

• Renewable integration and microgrid: 7%. 

By Runtime Configuration 

• Under 10 minutes: 42%. 

• 10–15 minutes: 46%. 

• Above 15 minutes: 12%, expanding in grid-unstable regions. 

The Data centers batteries Market segmentation indicates a clear tilt toward lithium-ion adoption in hyperscale and edge environments. For instance, hyperscale facilities installing 50 MW campuses typically require battery capacity exceeding 8–10 MWh per campus, significantly increasing per-project revenue contribution. 

In colocation facilities, modular battery blocks of 250–500 kWh are increasingly standardized, improving scalability and reducing commissioning time by nearly 20%. Enterprise facilities continue to use VRLA in cost-sensitive projects, although replacement cycles are shortening due to reliability expectations. 

 Price Analysis in the Data centers batteries Market 

The Data centers batteries Price environment is stabilizing after volatility observed during supply chain disruptions earlier in the decade. In 2026, average lithium-ion Data centers batteries Price ranges between USD 420–480 per kWh for large hyperscale orders, compared to USD 550–600 per kWh in 2023. 

The Data centers batteries Price Trend is showing gradual moderation, supported by expanded lithium refining capacity and improved cell manufacturing efficiencies. Lithium-ion pack assembly automation has reduced manufacturing cost by approximately 8–12% over two years. 

VRLA Data centers batteries Price remains lower on a per-kWh basis, averaging USD 160–220 per kWh in 2026. However, lifecycle replacement costs make long-term economics less favorable. For example, over a 10-year horizon, lithium-ion systems may achieve 20–30% lower total cost of ownership despite higher upfront Data centers batteries Price. 

The Data centers batteries Price Trend is also influenced by regional procurement strategies. In Asia-Pacific, bulk manufacturing proximity reduces logistics costs by nearly 6–8%, resulting in slightly lower average pricing compared to North America and Europe. 

Energy density improvements are another pricing driver. Lithium-ion energy density has improved by 5–7% annually, allowing fewer modules per installation. This structural efficiency moderates effective Data centers batteries Price per installed MW. 

Raw material cost stabilization has reduced quarter-to-quarter volatility. For instance, lithium carbonate prices have stabilized within a narrower ±6% range in 2025–2026 compared to fluctuations exceeding 25% in earlier years. As a result, the Data centers batteries Price Trend appears more predictable through 2028. 

Long-term supply contracts are increasingly common. Hyperscale operators are negotiating 3–5 year procurement agreements, locking in Data centers batteries Price structures and reducing exposure to commodity swings. Approximately 48% of large-scale installations in 2026 are executed under such agreements. 

 Regional Price Differentiation in the Data centers batteries Market 

Regional variance in Data centers batteries Price is influenced by import tariffs, local manufacturing incentives, and labor costs. 

• North America: USD 450–500 per kWh for lithium-ion systems. 

• Europe: USD 470–520 per kWh due to stricter compliance standards. 

• Asia-Pacific: USD 400–460 per kWh due to localized production scale. 

• Middle East: Slight premium due to logistics and environmental hardening requirements. 

The Data centers batteries Price Trend indicates modest annual decline of 3–5% expected through 2028 as manufacturing scale expands further. 

 Demand–Supply Balance in the Data centers batteries Market 

Supply-demand alignment in the Data centers batteries Market remains stable, though temporary bottlenecks can emerge during hyperscale construction surges. In 2026, global battery demand for data centers is projected at approximately 9.2 GWh, compared to available production capacity exceeding 12 GWh, indicating moderate buffer capacity. 

However, localized demand spikes—for example, large AI cluster deployments requiring over 500 MWh cumulative battery capacity in a single region—can temporarily tighten supply. This dynamic influences short-term Data centers batteries Price adjustments of 2–4%. 

The Data centers batteries Market therefore reflects balanced macro supply conditions but localized execution variability. 

Leading Companies in the Data centers batteries Market 

The competitive landscape of the Data centers batteries Market is moderately consolidated, with a mix of global power infrastructure providers and large-scale lithium-ion cell manufacturers controlling the majority of installations. Vendor positioning is largely influenced by integrated UPS capabilities, lithium-ion expertise, lifecycle service offerings, and hyperscale partnerships. 

By 2026, the top 6–8 suppliers collectively account for approximately 55–60% of total revenue in the Data centers batteries Market. Market leadership is concentrated among vertically integrated electrical infrastructure companies that bundle UPS systems, battery modules, monitoring software, and lifecycle services. 

Below is a structured overview of the principal manufacturers shaping the Data centers batteries Market. 

 Schneider Electric – Strong Hyperscale Position in the Data centers batteries Market 

Schneider Electric maintains a leading share in the Data centers batteries Market, estimated at 14–16% globally in 2026. The company’s Galaxy VX and Galaxy VL three-phase UPS platforms are widely deployed in hyperscale and colocation campuses, with lithium-ion battery integration as a standard configuration in new builds. 

The APC Smart-UPS lithium-ion product line supports edge and enterprise deployments, particularly in North America and Europe. Schneider’s strength lies in its EcoStruxure monitoring ecosystem, which integrates battery health diagnostics, predictive maintenance analytics, and remote asset management. 

The company’s dominance in colocation-heavy markets such as Western Europe and North America reinforces its position in the Data centers batteries Market share by manufacturers, especially in Tier III and Tier IV facilities. 

 Vertiv – AI-Driven Growth in the Data centers batteries Market 

Vertiv holds an estimated 12–14% share of the Data centers batteries Market in 2026, with significant exposure to hyperscale AI deployments. Its Liebert EXM2, Liebert GXT5, and high-capacity modular UPS systems support lithium-ion battery banks engineered for high-density data halls exceeding 40–60 kW per rack. 

Vertiv has gained incremental market share over the past two years due to AI cluster buildouts in the United States and parts of Asia-Pacific. Approximately 60% of its recent large-scale battery deployments are lithium-ion-based, reflecting alignment with the broader chemistry transition within the Data centers batteries Market. 

The company’s integrated thermal and battery system optimization capabilities have improved energy efficiency metrics by 6–8% in high-load deployments. 

 Eaton – Diversified Portfolio in the Data centers batteries Market 

Eaton commands an estimated 9–11% share in the Data centers batteries Market. Its 93PM and 9395 UPS product families are widely deployed in hyperscale and colocation facilities. Eaton’s lithium-ion battery cabinets are engineered for reduced footprint and enhanced cycle life, achieving up to 3,000 charge-discharge cycles in mission-critical environments. 

Eaton’s strategic strength lies in North American enterprise retrofits and emerging Asia-Pacific projects. The company has also expanded lifecycle services, which now account for a rising proportion of battery-related revenues within the Data centers batteries Market. 

 ABB – Industrial Integration Expertise in the Data centers batteries Market 

ABB’s estimated share in the Data centers batteries Market ranges between 6–8%. The company integrates energy storage with advanced power conversion technologies, enabling hybrid battery–microgrid solutions in regions experiencing grid volatility. 

ABB’s modular lithium-ion energy storage systems are particularly relevant in Middle Eastern and European projects where renewable integration and demand-response participation are increasing. Its grid-interactive capabilities differentiate its position within the Data centers batteries Market share by manufacturers. 

 Delta Electronics – Asia-Pacific Strength in the Data centers batteries Market 

Delta Electronics maintains approximately 6–7% share of the Data centers batteries Market. The company’s Ultron DPS and modular lithium-ion UPS solutions are widely deployed in Asia-Pacific hyperscale campuses. 

Delta’s competitive advantage stems from regional manufacturing integration and cost efficiency, which enables competitive pricing while maintaining performance standards. Nearly 70% of Delta’s new deployments in 2026 incorporate lithium-ion chemistry, reflecting broader industry transition trends.  

Saft (TotalEnergies) – Containerized Solutions in the Data centers batteries Market 

Saft holds approximately 4–6% share in the Data centers batteries Market, primarily through its Intensium Flex and Intensium Shift lithium-ion product lines. These systems are containerized and modular, suitable for large campus-style data centers requiring multi-megawatt-hour installations. 

Saft’s strength lies in lifecycle guarantees and high-cycle LFP chemistries, particularly in Europe and the Middle East. Its systems are increasingly specified for hybrid renewable integration projects supporting hyperscale operators targeting carbon neutrality. 

 CATL, BYD, LG Energy Solution, Samsung SDI – Cell-Level Influence in the Data centers batteries Market 

While UPS integrators dominate system-level contracts, lithium-ion cell manufacturers exert substantial influence over the Data centers batteries Market supply chain. 

• CATL is estimated to control over 30% of lithium-ion cell supply used in stationary storage applications globally, indirectly impacting a significant portion of the Data centers batteries Market. 

• BYD supplies both cells and fully integrated battery energy storage systems (BESS) and is expanding in Asia-Pacific hyperscale projects. 

• LG Energy Solution and Samsung SDI provide high-energy-density cells integrated into UPS battery cabinets by major OEMs. 

These manufacturers collectively influence input costs, energy density improvements, and lifecycle characteristics that define competitiveness in the Data centers batteries Market. 

 Data centers batteries Market Share by Manufacturers – Competitive Structure 

The Data centers batteries Market share by manufacturers reflects two structural layers: 

• Integrated Power & UPS Vendors (55–60% cumulative share) 

• Schneider Electric 

• Vertiv 

• Eaton 

• ABB 

• Delta Electronics 

• Legrand 

• Cell & Battery Module Suppliers (40–45% influence through supply chain integration) 

• CATL 

• BYD 

• LG Energy Solution 

• Samsung SDI 

Hyperscale concentration is increasing vendor consolidation. For instance, top hyperscale operators typically limit approved vendor lists to 3–4 strategic suppliers, resulting in larger contract volumes per manufacturer. This procurement model reinforces competitive barriers in the Data centers batteries Market. 

Lithium-ion dominance has further strengthened vertically integrated manufacturers capable of managing cell sourcing, pack assembly, and monitoring software. 

 Recent Developments and Industry Timeline – Data centers batteries Market 

2025 – Lithium-Ion Expansion Acceleration 

Major hyperscale projects in North America and India transitioned fully to lithium-ion battery configurations, increasing average battery capacity per campus by 18–22%. Manufacturers expanded production lines to meet demand. 

Late 2025 – Modular Containerized Storage Growth 

Several European and Middle Eastern hyperscale campuses adopted containerized battery storage modules exceeding 5 MWh per installation, strengthening Saft and ABB’s competitive positions within the Data centers batteries Market. 

Early 2026 – AI Infrastructure Impact 

Vertiv and Schneider Electric reported double-digit order growth in battery-integrated UPS solutions aligned with AI cluster deployment. Rack densities above 50 kW increased per-site battery capacity requirements significantly. 

2026 – Localization of Battery Manufacturing 

North American and European battery pack assembly investments expanded to reduce import dependency, contributing to shorter lead times and improved delivery reliability in the Data centers batteries Market.