PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1786365
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1786365
Global Data Center Energy Storage Market to Reach US$2.5 Billion by 2030
The global market for Data Center Energy Storage estimated at US$1.6 Billion in the year 2024, is expected to reach US$2.5 Billion by 2030, growing at a CAGR of 8.1% over the analysis period 2024-2030. Tier 3 Data Center Energy Storage, one of the segments analyzed in the report, is expected to record a 9.1% CAGR and reach US$1.3 Billion by the end of the analysis period. Growth in the Tier 4 Data Center Energy Storage segment is estimated at 7.7% CAGR over the analysis period.
The U.S. Market is Estimated at US$423.7 Million While China is Forecast to Grow at 12.8% CAGR
The Data Center Energy Storage market in the U.S. is estimated at US$423.7 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$537.4 Million by the year 2030 trailing a CAGR of 12.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 4.0% and 7.8% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 5.4% CAGR.
Global Data Center Energy Storage Market - Key Trends & Growth Drivers Summarized
Why Is Energy Storage Critical for Data Center Operations?
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 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.
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.
SCOPE OF STUDY:
The report analyzes the Data Center Energy Storage market in terms of units by the following Segments, and Geographic Regions/Countries:
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.
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