Data Center Energy Storage Market Analysis Report 2025-2030: Expansion Fueled by Power Reliability Needs, Battery Tech Advancements, Hyperscale & Edge Expansion, and AI-Driven Energy Optimization

Dublin, Nov. 10, 2025 (GLOBE NEWSWIRE) -- The "Data Center Energy Storage - Global Strategic Business Report" report has been added to ResearchAndMarkets.com's offering.

The global market for Data Center Energy Storage was estimated at US$1.6 Billion in 2024 and is projected to reach US$2.5 Billion by 2030, growing at a CAGR of 8.1% 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 energy storage systems play a pivotal role in ensuring power reliability, backup solutions, and load balancing. As data centers continue to scale to meet the demands of AI, cloud computing, and edge computing, uninterrupted power supply (UPS) and energy storage solutions are essential for maintaining uptime and preventing service disruptions.

With increasing concerns over grid stability and energy efficiency, data center operators are investing in advanced energy storage technologies, including lithium-ion batteries, flywheels, and supercapacitors. The shift toward renewable energy integration has also fueled demand for large-scale energy storage solutions that enable grid independence and load balancing during peak demand.

What Is Driving the Growth of the Data Center Energy Storage Market?

The growth in the data center energy storage market is driven by increasing power reliability concerns, advancements in battery technology, and regulatory support for sustainable data center operations. The expansion of hyperscale cloud facilities and edge computing deployments has intensified the need for high-efficiency energy storage solutions.

End-use expansion is another key factor, with energy storage systems being integrated into mission-critical data centers, government IT infrastructure, and financial service institutions. The growing focus on AI-driven power optimization and smart grid interactions is further driving market growth. Additionally, partnerships between data center operators and energy storage technology firms are fostering innovation, ensuring that future data centers remain energy-efficient, resilient, and cost-effective.

What Are the Latest Innovations in Data Center Energy Storage?

The adoption of lithium-ion (Li-ion) batteries as an alternative to traditional lead-acid UPS systems is one of the most significant innovations in energy storage. Li-ion batteries offer longer lifespan, faster charging capabilities, and reduced maintenance costs, making them the preferred choice for modern data centers. Additionally, the development of solid-state batteries is expected to further enhance energy storage efficiency and reliability.

Another key advancement is the use of AI-driven energy management systems that optimize battery storage utilization based on real-time power demand and grid conditions. Hybrid energy storage solutions that combine batteries with renewable sources, such as solar and wind power, are also gaining traction as data centers strive to reduce carbon footprints. Additionally, emerging ultra-capacitor technologies are being explored for high-speed energy discharge applications, enhancing UPS efficiency during critical power transitions.

How Are Market Trends and Sustainability Initiatives Influencing Energy Storage Adoption?

The growing push for sustainability and carbon-neutral data center operations has influenced market trends toward advanced energy storage solutions. Data center operators are increasingly adopting energy storage systems that support demand response programs, allowing them to store excess power and optimize grid interactions.

Regulatory policies promoting renewable energy adoption and energy efficiency incentives are also shaping the market. Government-backed initiatives, such as the U.S. Department of Energy's Energy Storage Grand Challenge and Europe's Battery Innovation Roadmap, are driving investment in next-generation energy storage technologies. Additionally, corporate sustainability commitments from hyperscale data center operators, including Google, Microsoft, and Amazon, are accelerating the transition to renewable-powered data centers with advanced energy storage infrastructure.

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 ABB, Active Power, Cisco Systems, Inc., Delta Electronics, Inc., Eaton 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 Tier 3 Data Center Energy Storage segment, which is expected to reach US$1.3 Billion by 2030 with a CAGR of a 9.1%. The Tier 4 Data Center Energy Storage segment is also set to grow at 7.7% CAGR over the analysis period.Regional Analysis: Gain insights into the U.S. market, estimated at $423.7 Million in 2024, and China, forecasted to grow at an impressive 12.8% CAGR to reach $537.4 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Scope of Study

Segments: Type (Tier 3 Data Center Energy Storage, Tier 4 Data Center Energy Storage, Tier 2 Data Center Energy Storage, Tier 1 Data Center Energy Storage); Application (BFSI Application, Manufacturing Application, Retail and E-commerce Application, Healthcare Application, Entertainment and Media Application, Other Applications)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 AttributeDetailsNo. of Pages210Forecast Period2024 - 2030Estimated Market Value (USD) in 2024$1.6 BillionForecasted Market Value (USD) by 2030$2.5 BillionCompound Annual Growth Rate8.1%Regions CoveredGlobal

Key Topics Covered:

MARKET OVERVIEW

Influencer Market InsightsTariff Impact on Global Supply Chain PatternsData Center Energy Storage - 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

Growing Integration of Renewable Energy Sources in Data Centers Creating Storage DemandIncreased Need for Load Shifting and Peak Shaving Through On-Site StorageExpansion of Grid-Interactive Data Centers Driving Battery Storage InvestmentsRising Use of Energy Storage for Backup Power and System RedundancyDeployment of Lithium-Ion and LFP Batteries Enhancing Performance and SafetyAdoption of Battery Energy Storage Systems (BESS) with Smart InvertersGrowth in Microgrid-Enabled Data Centers Promoting Storage IntegrationDemand for Modular, Scalable Storage Units Supporting Rapid ExpansionUse of Storage in Supporting DR (Demand Response) and Energy Arbitrage StrategiesIncreased Collaboration with Utilities for Grid Services and Ancillary MarketsWider Adoption of Energy-as-a-Service Models Including Storage ComponentsAdvancements in Fire Suppression and Battery Safety Boosting ConfidenceDevelopment of Long-Duration and Next-Gen Storage Technologies for Extended RuntimeIncreased Role of Energy Storage in Meeting ESG and Decarbonization GoalsRising Capital Investment from Cloud and Colocation Giants in On-Premise Storage

FOCUS ON SELECT PLAYERS:Some of the 34 companies featured in this Data Center Energy Storage market report include

ABBActive PowerCisco Systems, Inc.Delta Electronics, Inc.EatonEmerson Electric Co.Fluence Energy, Inc.General Electric CompanyHuawei Technologies Co., Ltd.LegrandLG Energy SolutionMitsubishi Electric Power Products Inc.Panasonic Holdings CorporationSaftSamsung SDI Co., Ltd.Schneider ElectricSiemens AGToshiba CorporationVertiv Group Corp.ZincFive

For more information about this report visit https://www.researchandmarkets.com/r/rzkq41

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Data Center Energy Storage Market