Analysts at MarketsandMarkets project that the global data center battery market will more than double in value over the next six years, rising from USD 4.82 billion in 2026 to USD 10.23 billion by 2032. This growth reflects a compound annual growth rate (CAGR) of 13.4%, driven largely by expanding digital workloads and the rising complexity of data center operations.
Investment in resilient power infrastructure is accelerating as hyperscale, colocation and enterprise operators seek to maintain uninterrupted service for artificial intelligence, cloud computing and other high-availability applications. Advanced battery energy storage systems (BESS) are expected to record the highest growth, with an estimated CAGR of 18%–22% during the forecast period. Uninterruptible power supply (UPS) batteries will continue to play a critical role in ensuring continuous power availability and protecting sensitive equipment from outages.
By battery technology, lithium-ion cells are forecast to account for 45%–55% of market share by 2032, owing to their higher energy density, longer service life and smaller footprint compared with traditional lead-acid alternatives. Improvements in battery management systems, thermal control and lifecycle characteristics are further enhancing their appeal in modern data center designs.
Cloud and hyperscale facilities are expected to register the strongest segment growth, reflecting the rapid expansion of large-scale digital infrastructure globally. Within enterprise verticals, the IT and telecommunications sector is projected to represent 20%–25% of the market by 2032, as carriers and service providers invest in backup power solutions to support growing network demands.
Regionally, North America is anticipated to hold a 32%–36% market share by the end of the forecast period, supported by significant investments in data center capacity and upgrades. The Asia Pacific region also remains a major growth area, with rapid development in China, India, Japan and Southeast Asia fueled by rising cloud adoption and edge computing requirements.
Leading suppliers in the data center battery market include Contemporary Amperex Technology Co., Limited (CATL), LG Energy Solution, Samsung SDI, Tesla and Panasonic. As operators prioritize energy efficiency, renewable integration and operational resilience, advanced battery technologies are poised to become an increasingly vital component of data center power architectures.
Source: PR Newswire
