United States Data Center Energy Storage Market Forecast 2025-2032

The United States data center energy storage market is anticipated to develop with a CAGR of 6.86% over the forecast period of 2025-2032. The market was valued at $865.34 million in 2024 and is expected to reach revenue of $1508.38 million by 2032.

The United States data center energy storage market is witnessing rapid growth, driven by the rising demand for reliable power and energy sustainability. This growth is fueled by the expansion of artificial intelligence (AI), cloud services, and big data analytics, which significantly increase data center energy loads.

MARKET INSIGHTS

The market features various energy storage solutions such as lithium-ion batteries, lead-acid batteries, flywheel energy storage, and thermal storage systems, all crucial for uninterrupted operations and data protection. Renewable energy integration and robust backup power systems are essential for enhancing power reliability.

The United States stands out as the fastest-growing market for data center energy storage solutions, driven by increasing reliance on machine learning models and real-time analytics. These technologies amplify energy consumption challenges, making sustainable solutions critical. A recent project leverages geothermal underground thermal energy storage (UTES) technology for effective data center cooling. According to a study released by the Electric Power Research Institute, by 2030, data center energy demands could account for up to 9% of US annual electricity generation.

Key drivers include the rising demand for Uninterruptible Power Supply (UPS) solutions, advancements in battery technologies, and growing investments in hyperscale and colocation data centers. The surge in cloud infrastructure, servers, and networking hardware necessitates reliable power backup solutions for uninterrupted data center operations. The market is also seeing the adoption of new battery chemistries that offer greater power availability, efficiency, and longer lifespan features highly valued by data center operators.

However, the market faces challenges, including high initial capital investment and technical complexities in integrating energy storage systems with existing data center infrastructures. Ensuring compatibility and optimal performance between energy storage solutions and existing equipment remains a critical hurdle. The report highlights seven key challenges that must be addressed for effective Virtual Power Plant (VPP) and battery energy storage integration.

SEGMENTATION ANALYSIS

The United States data center energy storage market segmentation includes storage technology, industry vertical, data center tier, and data center size.

Lithium-ion batteries for data centers are gaining traction due to their high energy density, extended lifespan, and decreasing costs. By 2025, lithium-ion batteries are projected to capture the highest market share of the data center energy storage market. These energy storage solutions deliver enhanced power availability and efficiency while addressing critical safety concerns. For instance, Google is replacing lead-acid battery backup units with lithium-ion cells, freeing up valuable space for additional servers.

Tier 4 data centers represent the highest level of fault tolerance, designed to remain operational despite multiple component failures. These high-resilience data centers provide redundancy in power, cooling, network connectivity, and security. Due to their advanced infrastructure and stringent operational requirements, Tier 4 data centers command premium pricing, attracting significant investments. HostDime's mission is to design, build, and operate public Tier 4 data center facilities in emerging markets at the global edge, ensuring unmatched reliability and fault tolerance.

COMPETITIVE INSIGHTS

Some of the top enterprises operating in the United States data center energy storage market include ABB Ltd, Delta Electronics Inc, Eaton Corporation, Enphase Energy Inc, Huawei Technologies Co Ltd, Legrand SA, Mitsubishi Electric Corporation, Schneider Electric SE, Tesla Inc, and Vertiv Holdings Co.

Schneider Electric SE is a global leader in energy management and automation, providing innovative solutions for sustainable and efficient power management. Schneider Electric is a key player offering comprehensive energy storage solutions tailored to the unique demands of data centers. The company's EcoStruxure for Data Centers platform integrates power, cooling, and energy storage to enhance data center reliability, efficiency, and sustainability.

1. RESEARCH SCOPE & METHODOLOGY

1.1. STUDY OBJECTIVES
1.2. METHODOLOGY
1.3. ASSUMPTIONS & LIMITATIONS

2. EXECUTIVE SUMMARY

2.1. MARKET SIZE & ESTIMATES
2.2. COUNTRY SNAPSHOT
2.3. COUNTRY ANALYSIS
2.4. SCOPE OF STUDY
2.5. MAJOR MARKET FINDINGS
- 2.5.1. LITHIUM-ION BATTERIES ARE WIDELY RECOGNIZED FOR THEIR EFFICIENCY AND SCALABILITY
- 2.5.2. IT & TELECOM SECTOR CONTINUES TO DRIVE INNOVATION IN DATA CENTER ENERGY STORAGE
- 2.5.3. TIER III DATA CENTERS ARE VALUED FOR THEIR HIGH RELIABILITY AND REDUNDANCY
- 2.5.4. LARGE DATA CENTERS PLAY A PIVOTAL ROLE IN MEETING THE GROWING DEMANDS OF DIGITAL TRANSFORMATION

3. MARKET DYNAMICS

3.1. KEY DRIVERS
- 3.1.1. GROWING DEMAND FOR UNINTERRUPTED POWER SUPPLY (UPS)
- 3.1.2. ADVANCEMENTS IN BATTERY TECHNOLOGIES
- 3.1.3. RISING INVESTMENTS IN HYPERSCALE AND COLOCATION DATA CENTERS
3.2. KEY RESTRAINTS
- 3.2.1. HIGH INITIAL CAPITAL INVESTMENT
- 3.2.2. TECHNICAL COMPLEXITIES AND INTEGRATION ISSUES

4. KEY ANALYTICS

4.1. KEY MARKET TRENDS
- 4.1.1. RISING ADOPTION OF RENEWABLE ENERGY IN DATA CENTERS
- 4.1.2. EXPANSION OF EDGE DATA CENTERS AND 5G NETWORKS
- 4.1.3. GROWING NEED FOR ENERGY EFFICIENCY AND CARBON FOOTPRINT REDUCTION
4.2. PORTER'S FIVE FORCES ANALYSIS
- 4.2.1. BUYERS POWER
- 4.2.2. SUPPLIERS POWER
- 4.2.3. SUBSTITUTION
- 4.2.4. NEW ENTRANTS
- 4.2.5. INDUSTRY RIVALRY
4.3. GROWTH PROSPECT MAPPING FOR UNITED STATES
4.4. MARKET MATURITY ANALYSIS
4.5. MARKET CONCENTRATION ANALYSIS
4.6. VALUE CHAIN ANALYSIS
- 4.6.1. RAW MATERIAL SUPPLIERS
- 4.6.2. COMPONENT MANUFACTURERS
- 4.6.3. ENERGY STORAGE SOLUTION PROVIDERS
- 4.6.4. SYSTEM INTEGRATORS AND INSTALLERS
- 4.6.5. SERVICE PROVIDERS AND MAINTENANCE COMPANIES
- 4.6.6. END-USERS (DATA CENTERS)
4.7. KEY BUYING CRITERIA
- 4.7.1. RELIABILITY AND PERFORMANCE
- 4.7.2. COST EFFICIENCY (CAPEX & OPEX)
- 4.7.3. SCALABILITY AND FLEXIBILITY
- 4.7.4. SAFETY AND COMPLIANCE
- 4.7.5. ENERGY DENSITY AND SPACE OPTIMIZATION
- 4.7.6. ADVANCED MONITORING AND MANAGEMENT CAPABILITIES

5. MARKET BY STORAGE TECHNOLOGY

5.1. LITHIUM-ION BATTERIES
- 5.1.1. MARKET FORECAST FIGURE
- 5.1.2. SEGMENT ANALYSIS
5.2. LEAD-ACID BATTERIES
- 5.2.1. MARKET FORECAST FIGURE
- 5.2.2. SEGMENT ANALYSIS
5.3. NICKEL-CADMIUM BATTERIES
- 5.3.1. MARKET FORECAST FIGURE
- 5.3.2. SEGMENT ANALYSIS
5.4. SODIUM-SULFUR (NAS) BATTERIES
- 5.4.1. MARKET FORECAST FIGURE
- 5.4.2. SEGMENT ANALYSIS
5.5. FLOW BATTERIES
- 5.5.1. MARKET FORECAST FIGURE
- 5.5.2. SEGMENT ANALYSIS
5.6. SUPERCAPACITORS
- 5.6.1. MARKET FORECAST FIGURE
- 5.6.2. SEGMENT ANALYSIS
5.7. FLYWHEEL ENERGY STORAGE
- 5.7.1. MARKET FORECAST FIGURE
- 5.7.2. SEGMENT ANALYSIS
5.8. OTHER STORAGE TECHNOLOGIES
- 5.8.1. MARKET FORECAST FIGURE
- 5.8.2. SEGMENT ANALYSIS

6. MARKET BY INDUSTRY VERTICAL

6.1. IT & TELECOM
- 6.1.1. MARKET FORECAST FIGURE
- 6.1.2. SEGMENT ANALYSIS
6.2. BFSI (BANKING, FINANCIAL SERVICES, AND INSURANCE)
- 6.2.1. MARKET FORECAST FIGURE
- 6.2.2. SEGMENT ANALYSIS
6.3. HEALTHCARE
- 6.3.1. MARKET FORECAST FIGURE
- 6.3.2. SEGMENT ANALYSIS
6.4. GOVERNMENT & DEFENSE
- 6.4.1. MARKET FORECAST FIGURE
- 6.4.2. SEGMENT ANALYSIS
6.5. RETAIL & E-COMMERCE
- 6.5.1. MARKET FORECAST FIGURE
- 6.5.2. SEGMENT ANALYSIS
6.6. MEDIA & ENTERTAINMENT
- 6.6.1. MARKET FORECAST FIGURE
- 6.6.2. SEGMENT ANALYSIS
6.7. OTHER INDUSTRY VERTICALS
- 6.7.1. MARKET FORECAST FIGURE
- 6.7.2. SEGMENT ANALYSIS

7. MARKET BY DATA CENTER TIER

7.1. TIER I
- 7.1.1. MARKET FORECAST FIGURE
- 7.1.2. SEGMENT ANALYSIS
7.2. TIER II
- 7.2.1. MARKET FORECAST FIGURE
- 7.2.2. SEGMENT ANALYSIS
7.3. TIER III
- 7.3.1. MARKET FORECAST FIGURE
- 7.3.2. SEGMENT ANALYSIS
7.4. TIER IV
- 7.4.1. MARKET FORECAST FIGURE
- 7.4.2. SEGMENT ANALYSIS

8. MARKET BY DATA CENTER SIZE

8.1. LARGE DATA CENTERS
- 8.1.1. MARKET FORECAST FIGURE
- 8.1.2. SEGMENT ANALYSIS
8.2. MEDIUM DATA CENTERS
- 8.2.1. MARKET FORECAST FIGURE
- 8.2.2. SEGMENT ANALYSIS
8.3. SMALL DATA CENTERS
- 8.3.1. MARKET FORECAST FIGURE
- 8.3.2. SEGMENT ANALYSIS

9. COMPETITIVE LANDSCAPE

9.1. KEY STRATEGIC DEVELOPMENTS
- 9.1.1. MERGERS & ACQUISITIONS
- 9.1.2. PRODUCT LAUNCHES & DEVELOPMENTS
- 9.1.3. PARTNERSHIPS & AGREEMENTS
- 9.1.4. BUSINESS EXPANSIONS & DIVESTITURES
9.2. COMPANY PROFILES
- 9.2.1. ABB LTD
  - 9.2.1.1. COMPANY OVERVIEW
  - 9.2.1.2. PRODUCTS
  - 9.2.1.3. STRENGTHS & CHALLENGES
- 9.2.2. DELTA ELECTRONICS INC
  - 9.2.2.1. COMPANY OVERVIEW
  - 9.2.2.2. PRODUCTS
  - 9.2.2.3. STRENGTHS & CHALLENGES
- 9.2.3. EATON CORPORATION
  - 9.2.3.1. COMPANY OVERVIEW
  - 9.2.3.2. PRODUCTS
  - 9.2.3.3. STRENGTHS & CHALLENGES
- 9.2.4. ENPHASE ENERGY INC
  - 9.2.4.1. COMPANY OVERVIEW
  - 9.2.4.2. PRODUCTS
  - 9.2.4.3. STRENGTHS & CHALLENGES
- 9.2.5. HUAWEI TECHNOLOGIES CO LTD
  - 9.2.5.1. COMPANY OVERVIEW
  - 9.2.5.2. PRODUCTS
  - 9.2.5.3. STRENGTHS & CHALLENGES
- 9.2.6. LEGRAND SA
  - 9.2.6.1. COMPANY OVERVIEW
  - 9.2.6.2. PRODUCTS
  - 9.2.6.3. STRENGTHS & CHALLENGES
- 9.2.7. MITSUBISHI ELECTRIC CORPORATION
  - 9.2.7.1. COMPANY OVERVIEW
  - 9.2.7.2. PRODUCTS
  - 9.2.7.3. STRENGTHS & CHALLENGES
- 9.2.8. SCHNEIDER ELECTRIC SE
  - 9.2.8.1. COMPANY OVERVIEW
  - 9.2.8.2. PRODUCTS
  - 9.2.8.3. STRENGTHS & CHALLENGES
- 9.2.9. TESLA, INC.
  - 9.2.9.1. COMPANY OVERVIEW
  - 9.2.9.2. PRODUCTS
  - 9.2.9.3. STRENGTHS & CHALLENGES
- 9.2.10. VERTIV HOLDINGS CO.
  - 9.2.10.1. COMPANY OVERVIEW
  - 9.2.10.2. PRODUCTS
  - 9.2.10.3. STRENGTHS & CHALLENGES

LIST OF TABLES

TABLE 1: MARKET SNAPSHOT - DATA CENTER ENERGY STORAGE
TABLE 2: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY STORAGE TECHNOLOGY, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 3: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY STORAGE TECHNOLOGY, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 4: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY INDUSTRY VERTICAL, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 5: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY INDUSTRY VERTICAL, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 6: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY DATA CENTER TIER, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 7: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY DATA CENTER TIER, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 8: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY DATA CENTER SIZE, HISTORICAL YEARS, 2018-2023 (IN $ MILLION)
TABLE 9: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY DATA CENTER SIZE, FORECAST YEARS, 2025-2032 (IN $ MILLION)
TABLE 10: LIST OF MERGERS & ACQUISITIONS
TABLE 11: LIST OF PRODUCT LAUNCHES & DEVELOPMENTS
TABLE 12: LIST OF PARTNERSHIPS & AGREEMENTS
TABLE 13: LIST OF BUSINESS EXPANSIONS & DIVESTITURES

LIST OF FIGURES

FIGURE 1: KEY MARKET TRENDS
FIGURE 2: PORTER'S FIVE FORCES ANALYSIS
FIGURE 3: MARKET MATURITY ANALYSIS
FIGURE 4: MARKET CONCENTRATION ANALYSIS
FIGURE 5: VALUE CHAIN ANALYSIS
FIGURE 6: KEY BUYING CRITERIA
FIGURE 7: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, GROWTH POTENTIAL, BY STORAGE TECHNOLOGY, IN 2024
FIGURE 8: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY LITHIUM-ION BATTERIES, 2025-2032 (IN $ MILLION)
FIGURE 9: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY LEAD-ACID BATTERIES, 2025-2032 (IN $ MILLION)
FIGURE 10: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY NICKEL-CADMIUM BATTERIES, 2025-2032 (IN $ MILLION)
FIGURE 11: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY SODIUM-SULFUR (NAS) BATTERIES, 2025-2032 (IN $ MILLION)
FIGURE 12: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY FLOW BATTERIES, 2025-2032 (IN $ MILLION)
FIGURE 13: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY SUPERCAPACITORS, 2025-2032 (IN $ MILLION)
FIGURE 14: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY FLYWHEEL ENERGY STORAGE, 2025-2032 (IN $ MILLION)
FIGURE 15: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY OTHER STORAGE TECHNOLOGIES, 2025-2032 (IN $ MILLION)
FIGURE 16: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, GROWTH POTENTIAL, BY INDUSTRY VERTICAL, IN 2024
FIGURE 17: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY IT & TELECOM, 2025-2032 (IN $ MILLION)
FIGURE 18: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY BFSI (BANKING, FINANCIAL SERVICES, AND INSURANCE), 2025-2032 (IN $ MILLION)
FIGURE 19: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY HEALTHCARE, 2025-2032 (IN $ MILLION)
FIGURE 20: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY GOVERNMENT & DEFENSE, 2025-2032 (IN $ MILLION)
FIGURE 21: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY RETAIL & E-COMMERCE, 2025-2032 (IN $ MILLION)
FIGURE 22: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY MEDIA & ENTERTAINMENT, 2025-2032 (IN $ MILLION)
FIGURE 23: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY OTHER INDUSTRY VERTICALS, 2025-2032 (IN $ MILLION)
FIGURE 24: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, GROWTH POTENTIAL, BY DATA CENTER TIER, IN 2024
FIGURE 25: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY TIER I, 2025-2032 (IN $ MILLION)
FIGURE 26: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY TIER II, 2025-2032 (IN $ MILLION)
FIGURE 27: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY TIER III, 2025-2032 (IN $ MILLION)
FIGURE 28: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY TIER IV, 2025-2032 (IN $ MILLION)
FIGURE 29: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, GROWTH POTENTIAL, BY DATA CENTER SIZE, IN 2024
FIGURE 30: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY LARGE DATA CENTERS, 2025-2032 (IN $ MILLION)
FIGURE 31: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY MEDIUM DATA CENTERS, 2025-2032 (IN $ MILLION)
FIGURE 32: UNITED STATES DATA CENTER ENERGY STORAGE MARKET, BY SMALL DATA CENTERS, 2025-2032 (IN $ MILLION)