Data Center Energy Storage Systems Market

The global data center energy storage systems market is projected to grow from USD 5.17 billion in 2026 to USD 10.48 billion by 2032, at a CAGR of 12.5% during the forecast period. Data center energy storage systems are energy storage solutions deployed within or alongside data center facilities to support the facility’s electricity needs and improve the reliability and flexibility of its power infrastructure. They provide data center operators with a means of storing electricity and making it available when required, thereby supporting operations during power interruptions, periods of high electricity demand, or changes in power availability. The market includes different storage approaches, with their use depending on the requirements of the data center and the intended application, including backup power, power quality, peak demand management, and integration of renewable energy. Demand for these systems is increasing as data centers become larger and more electricity-intensive, particularly with the expansion of cloud computing, artificial intelligence, digital services, and high-performance computing.

The continued construction of hyperscale and colocation facilities is further expanding the addressable market for energy storage solutions. At the same time, increasing pressure on electricity grids, limited availability of grid capacity in key data center locations, rising electricity costs, and growing emphasis on energy efficiency are encouraging operators to adopt solutions that provide greater control over their electricity consumption. The increasing use of renewable energy in data center operations is also creating additional opportunities for energy storage, as operators seek to better manage the availability and utilization of renewable power. Furthermore, the growing importance of uninterrupted digital services is strengthening the focus on power resilience, supporting the continued adoption of energy storage systems across data center facilities.

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Tesla (US), Contemporary Amperex Technology Co., Limited (China), LG Energy Solution (South Korea), Samsung SDI Co., Ltd. (South Korea), and Panasonic Holdings Corporation (Japan) fall under the winners’ category. The following are the leading companies in the global data center energy storage systems market, ranked by their production capacities. These key players have employed a variety of growth strategies, including agreements, partnerships, expansions, and product launches. These initiatives have allowed them to broaden their geographical presence and increase their market share. For example,

• In June 2026, Contemporary Amperex Technology Co., Limited launched TENER Sodium, the world's first field-validated sodium-ion energy storage system. The system is designed to deliver enhanced safety, long service life, and reliable performance across a wide temperature range. Supported by CATL's sodium-ion technology and large-scale manufacturing capabilities, TENER Sodium enables cost-effective, large-scale energy storage deployment while reducing dependence on lithium resources.
• In June 2026, Tesla and NatPower signed an agreement and initiated the first phase of a USD 5-billion project to deploy 25 GWh of Tesla Megapack battery storage in Italy and Britain. These large-scale systems will enhance grid stability and meet the increasing power demands of data centers and other large-load applications.
• In March 2026, Panasonic Energy announced plans to significantly expand lithium-ion battery production capacity to meet rising demand from data center energy storage and backup systems.

LG Energy Solution (South Korea)

LG Energy Solution is involved mainly in manufacturing and supplying batteries for applications such as laptops, mobile phones, and computers, as well as automotive batteries for vehicles. It offers the energy storage system (ESS) the ability to enhance energy efficiency by improving the quality of renewable energy and stabilizing the power supply system. An ESS is the integration of a battery cell, a battery pack, a battery module, and a battery rack system. ESS is used in electric grids, homes, and uninterruptible power supply (UPS) devices.

LG Energy Solution provides mid- and large-sized rechargeable lithium-ion batteries for automotive applications. Electric vehicles (EVs) require automotive batteries with high stability, high output, and high energy density. Automotive batteries are also installed in hybrid vehicles (HEVs) and plug-in hybrid vehicles (PHEVs). Automotive lithium-ion batteries are embedded in EVs and the EV charging infrastructure, offering superior performance. A battery energy storage system supports the EV charging infrastructure by storing large amounts of energy and handling energy fluctuations efficiently. The company’s IT and new application batteries include cylindrical, prismatic, and polymer models provided in cells or battery packs.

Contemporary Amperex Technology Co., Limited (China)

Contemporary Amperex Technology Co., Limited focuses on researching, developing, producing, and selling power batteries and energy storage systems for renewable and green vehicles. The company’s products and services include lithium battery materials, battery cells, battery management systems, battery recycling, and reuse. It offers a range of products, including electric cars, buses, trucks, specialized vehicles, devices for grid frequency modulation, communication base stations, and energy systems for commercial and residential buildings. Additionally, it provides comprehensive solutions and complete life cycle services to clients worldwide.

Contemporary Amperex Technology Co., Limited provides an energy storage management solution that effectively regulates output and energy storage in power generation operations. The company’s building management system technology ensures a stable power grid, optimizes power output, and reduces solar and wind curtailment. Its energy management solutions are used in power grids in commercial and residential areas. Its Battery Recycling division is vital in the new energy vehicle industry. It promotes sustainable development by properly handling and disposing of vehicles and used batteries across the new energy vehicle (NEV) industry.

Contemporary Amperex Technology Co., Limited processes, purifies, and synthesizes rare earth metals, such as nickel, cobalt, manganese, and lithium, from used lithium-ion batteries to produce NMC precursors and other lithium-ion materials. The company processes and produces lithium-ion battery materials by outsourcing the necessary materials. Its primary business operations are in China and Japan, with five R&D centers and 10 production bases.

Market Ranking

The data center energy storage systems market remains competitive, with the top 5 players, namely, Tesla (US), Contemporary Amperex Technology Co., Limited (China), LG Energy Solution (South Korea), Samsung SDI Co., Ltd. (South Korea), and Panasonic Holdings Corporation (Japan), collectively accounting for approximately 25–35% of the market. The presence of several established players with complementary capabilities reflects the competitive nature of the market and the growing demand for reliable energy storage solutions across data center applications. Tesla (US) benefits from its strong positioning in large-scale battery energy storage and integrated solutions suited to the high-power requirements of data centers. Contemporary Amperex Technology Co., Limited (China) has a strong position through its large-scale battery manufacturing capabilities and energy storage solutions suitable for high-capacity data center applications. LG Energy Solution (South Korea) benefits from its broad ESS portfolio and ability to address data center requirements for backup power and energy management. Samsung SDI Co., Ltd. (South Korea) brings established battery expertise and ESS solutions suited to applications requiring reliable and stable power for critical data center infrastructure. Panasonic Holdings Corporation (Japan) benefits from its battery technology expertise, established presence in backup power solutions, and ability to support the growing energy requirements of data center facilities.

Related Reports:

Data Center Energy Storage Systems Market by Energy Storage Technology (BESS, FESS, Supercapacitor), Data Center Type (Enterprise, Cloud & Hyperscale, Colocation), Application, Enterprise Vertical, and Region - Global Forecast to 2032

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