The data center industry is at a pivotal moment, driven by the rapid rise of AI, evolving energy demands, and an increasing focus on sustainability. To navigate these shifts, ZincFive®, the global leader in nickel-zinc (NiZn) battery-based solutions, has released its second annual 2025 Data Center Energy Storage Industry Insights Report in collaboration with Data Center Frontier. This comprehensive study provides an in-depth analysis of the trends shaping the future of energy storage in data centers worldwide.
AI’s Growing Influence on Energy Storage
Artificial intelligence is fundamentally reshaping the power landscape, and its impact on energy storage strategies is becoming more pronounced. The report reveals that:
- 55% of respondents cite increased energy efficiency requirements as the biggest effect of AI on power systems.
- 54% emphasize the need for higher power density and smaller footprints to support AI-driven workloads.
- 86% foresee a shift toward more customized power solutions tailored to AI demands.
These findings highlight a growing demand for flexible and high-performance energy storage solutions capable of supporting AI-intensive operations without compromising efficiency.
Cost, Safety, and Reliability Drive Change
Cost remains the primary driver of change in energy storage technology, with 58% of respondents identifying it as their top concern. Other key factors influencing adoption include:
- Safety (46%)
- Cooling requirements (42%)
- Product availability (40%)
- Reliability issues (39%)
As data centers scale to accommodate increasing workloads, decision-makers are prioritizing solutions that offer a balance of cost-effectiveness, dependability, and operational safety.
Sustainability Gains Momentum
Sustainability is no longer just a corporate buzzword—it’s a strategic imperative. According to the report:
- 87% of respondents consider sustainability a priority, up from 81% in 2024.
- 72% report significant or moderate cost reductions resulting from their organization’s sustainability efforts, compared to 63% last year.
These figures highlight a growing awareness that sustainable practices can drive both environmental benefits and economic efficiency.
Backup Runtimes and Modular Power Solutions
Data center operators are re-evaluating their backup power strategies. The study finds that 37% of respondents anticipate shorter UPS battery backup runtimes in the future, a sharp increase from 26% in 2024. This shift suggests a trend toward more efficient energy storage technologies that maximize uptime while reducing redundancy.
Additionally, modular power solutions continue to gain traction, with 68% of respondents using them and planning to continue. These solutions provide scalability, flexibility, and improved resilience—critical advantages in an industry undergoing rapid transformation.
The Future of Energy Storage in Data Centers
Tim Hysell, CEO and Co-Founder of ZincFive, underscores the importance of staying ahead of industry shifts:
“As data centers evolve to meet rising AI-driven workloads, sustainability goals, and increasing power demands, staying ahead of industry shifts has never been more critical. This report captures the pulse of the industry, revealing not just the adoption of new technologies, but 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.”
With AI transforming workloads, sustainability driving decision-making, and energy efficiency remaining a top concern, the insights from ZincFive’s 2025 report offer a valuable roadmap for industry professionals looking to future-proof their data centers. As the energy storage landscape continues to evolve, adopting smarter and more resilient solutions will be key to navigating the next phase of data center growth.
Read more in the press release here.
