Report Reveals AI-Driven Shift in Data Center Energy Storage
ZincFive®, the global leader in nickel-zinc (NiZn) battery-based solutions for immediate power applications, has released its second annual 2025 Data Center Energy Storage Industry Insights Report in collaboration with Data Center Frontier. This extensive report provides a detailed examination of the rapidly evolving energy storage landscape, featuring insights from industry professionals worldwide. It explores key trends shaping the future of data center power, highlighting shifting priorities, emerging challenges, evolving perceptions, and the growing influence of AI on energy storage strategies.
AI’s Transformative Impact on Energy Storage
One of the most significant findings from the report is AI’s growing impact on power and energy storage requirements. AI-driven workloads are increasing demands for more efficient power infrastructure, leading to a need for advanced energy solutions. According to the survey, 55% of respondents identified increased energy efficiency requirements as the biggest impact of AI, while 54% pointed to the growing necessity for higher power density and smaller footprints in data centers. This shift reflects the industry’s adaptation to accommodate energy-intensive AI applications while optimizing operational efficiency.
Key Drivers of Change in Energy Storage Technology
As energy storage technologies continue to evolve, various factors are driving adoption and innovation. Cost remains the primary motivator, with 58% of respondents citing it as a major influence on changes in energy storage solutions. Safety concerns (46%), cooling requirements (42%), product availability (40%), and reliability issues (39%) also play crucial roles in shaping decision-making within the industry.
Beyond economic and technical considerations, the increasing demand for energy-efficient and resilient storage solutions is pushing data centers to explore alternatives to traditional battery technologies. The integration of NiZn batteries and other advanced storage solutions demonstrates a growing emphasis on safety, longevity, and operational efficiency.
Sustainability and Cost Reduction Trends
Sustainability continues to gain traction as a key priority for data centers worldwide. In 2025, 87% of respondents identified sustainability as an essential factor in their energy storage strategies, up from 81% in 2024. This growing focus reflects an industry-wide commitment to reducing environmental impact while maintaining efficiency and reliability.
A notable trend emerging from the report is the correlation between sustainability efforts and cost reduction. Nearly three-quarters (72%) of respondents reported significant or moderate cost savings due to sustainability initiatives, an increase from 63% in the previous year. This suggests that companies are not only prioritizing greener solutions but are also recognizing their financial benefits. Innovations in battery chemistry, energy management software, and renewable energy integration are enabling data centers to lower operational costs while meeting sustainability goals.
The Changing Landscape of UPS Battery Backup Runtimes
Uninterruptible Power Supply (UPS) battery backup runtimes are undergoing notable shifts in response to evolving power demands. In 2025, 37% of respondents expect their UPS backup runtimes to decrease in the future, a substantial increase from 26% in 2024. Conversely, 31% anticipate no change in runtime, down from 38% last year.
The decline in expected backup runtimes could be attributed to advancements in power infrastructure and the increasing reliability of energy storage systems. As battery technology improves and grid stability becomes more predictable, data centers may require shorter backup durations while maintaining operational resilience.
AI’s Influence on Power System Design
The integration of AI is reshaping how power systems are designed and implemented in data centers. Nearly nine in ten respondents (86%) foresee a shift toward more customized power solutions tailored to AI workloads. Only 4% of respondents expect no changes, indicating widespread recognition of the need for adaptive energy solutions.
Custom power solutions are becoming essential as AI-driven applications demand higher performance and energy efficiency. Data centers are investing in intelligent power management systems, AI-powered predictive analytics, and modular energy storage solutions to optimize energy consumption and ensure seamless operations.
Adoption of Modular Power Solutions
Modular power solutions are gaining traction as an effective way to enhance scalability and flexibility in data centers. According to the survey, 68% of respondents use modular power solutions and plan to continue doing so. Additionally, 22% have deployed modular solutions across all locations, while 14% have no plans for adoption.
The appeal of modular power systems lies in their ability to improve energy efficiency, reduce downtime, and accommodate evolving technological demands. These solutions enable data centers to scale their energy infrastructure incrementally, avoiding costly overprovisioning while ensuring consistent performance.
Industry Insights and Future Outlook
As data centers continue to evolve in response to increasing AI-driven workloads, sustainability targets, and rising power demands, staying ahead of industry shifts has never been more critical. Tim Hysell, CEO and Co-Founder of ZincFive, emphasized the importance of adapting to these trends, stating:
“This report captures the pulse of the industry, revealing not just the adoption of new technologies but also the growing demand for smarter, more resilient, and sustainable energy storage solutions. The data underscores an ongoing shift – one that prioritizes efficiency, reliability, and innovation to power the future of data centers.”
The 2025 Data Center Energy Storage Industry Insights Report was developed through an extensive data collection and analysis process conducted by Data Center Frontier and Endeavor Business Intelligence on behalf of ZincFive. The survey was conducted between January 23 and February 6, 2025, with participation from 132 qualified industry professionals worldwide.
With energy storage playing an increasingly vital role in the future of data center infrastructure, these insights provide a valuable roadmap for industry leaders seeking to optimize power strategies, enhance sustainability, and support the next generation of AI-driven workloads. The findings highlight the need for continued investment in innovative energy storage solutions, ensuring that data centers remain resilient, efficient, and prepared for the challenges ahead.
