In recent years, data centers have experienced unprecedented growth, mainly driven by the rapid expansion of artificial intelligence (AI).
This surge comes with massive energy demands, with more centers being built, and computing workloads becoming far more energy intensive. This not only places a lot of pressure on existing power grids and infrastructure but also underscores the need for reliable and efficient storage systems even more.
Battery technology is emerging as a key solution to address the energy demands of data centers, provide reliable backup power and enable greater use of renewable energy sources.
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A battery energy storage system (BESS) is a bank of batteries connected to a set of inverters and controls. The system stores energy and releases it when needed, such as during outages, power quality failures, or times of high demand.
A BESS helps stabilize power supply, reduce reliance on backup generators powered by fossil fuels, and support the integration of renewable energy. It is a potentially game-changing tool for the industry, given the general push towards decarbonization.
These systems are designed to provide backup power for periods ranging from 15 minutes to several hours, depending on the system’s capacity and the needs of the data center. The intent of using a BESS is not to replace existing generators and uninterruptible power supply (UPS) setups, but rather to complement them and bridge potential power gaps.
A BESS provides instant backup power during outages, which allows important data center systems to remain operational without disruption. This gives operators time to bring backup generators online or to safely transition to alternate power sources.
These systems stabilize voltage and frequency. As a result, they reduce the fluctuations that could potentially harm important equipment.
A BESS can reduce the emissions and noise pollution that accompany traditional generator use.
By discharging stored energy during periods of high electrical demand, these systems considerably reduce stress on the grid while also lowering energy costs.
At night, when solar generation isn’t an option, a BESS can supply stored energy to maintain operations.
| Battery Type | Adoption in Data Centers (2025) | Cycle Life (Approx.) | State of charge (SOC) | Comparison to Other Technologies | Advantages | Disadvantages |
|---|---|---|---|---|---|---|
| Valve regulated lead acid (VRLA) | 15–20% | 300-800 cycles | Should be discharged down to 70% only, then recharged quickly to slow aging and preserve battery health | Popular, but older technology |
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| Lithium iron phosphate (LFP) | 60–70% | 5,000-6,000 cycles | Can be discharged down to 10-20% to preserve battery health | Current best alternative to lead acid |
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| Lithium nickel manganese cobalt (NMC) | 20–25% (mostly North America) | 3,000-4,000 cycles | Can be discharged down to 20% to preserve battery health | Main competitor to LFP |
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| Sodium-ion | Market share of ~5% (expected to grow to 30% by 2030 in energy storage use cases) | 2,000-5,000 cycles | Can be operated down to 0% SOC but best practice SOC range is 10-90% SOC | Show the most promise for energy storage systems |
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| Redox Flow | <2% | 2,000-5,000 cycles | Redox Flow are the only one that can be operated from 100 to 0% SOC without risk of significant degradation | Could rival LFP in lifecycles if installations costs decrease |
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| Nickel-zinc (NiZn) | <1% | 500 to 250,000+ cycles depending on the DOD | Can be discharged down to 30% to preserve battery health | Promising alternative with three times the power density of traditional battery technologies, half the footprint, and one third the weight |
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| Solid-State | Very small adoption | 8,000-10,000 cycles | Takes approximatively 10 minutes to achieve an 80% increase in SOC | Similar to LFP, but uses solid electrolyte instead of liquid |
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Considering all of these different factors, how can we determine which battery type better fits the needs of a particular data center?
Selecting the optimal battery solution starts with an evaluation of the total cost of ownership (TCO). It’s important to consider both the upfront cost per kWh installed and the long-term costs associated with replacements, loss of efficiency, cooling needs, physical footprint, maintenance, and safety requirements.
Material availability and geopolitics also play a role in this decision. With many components being sourced from China, projects are exposed to evolving costs, risks surrounding tariffs, and supply chain delays. And although local battery production is expanding, we should expect and prepare for changing trade policies and potential disruptions in the future.
Another important factor is, of course, battery performance, and this can be measured in terms of lifecycle, maintenance needs, and overall reliability. Data security also depends on the battery’s capacity to support redundancy and keep the data center operational even in the event of failures.
Finally, more companies are prioritizing sustainability and may therefore choose batteries that are both reliable and easier to recycle at no additional cost.
Lasers can be used to weld, clean, and mark batteries for data centers. Get in touch with us to learn how our solutions can improve your manufacturing process.
Technical expert and consultant in batteries and electrical propulsion systems, Stéphane holds a Physics degree with specializations in Photonics, Optics, Electronics, Robotics, and Acoustics. Invested in the EV transformation, he has designed industrial battery packs for electrical bikes. In his free time, he runs a YouTube channel on everything electrical.
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