UNITED STATES DATA CENTER ENERGY STORAGE MARKET FORECAST 2025-2032

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.

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.

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.