A report on the projected demand and supply of batteries for data centers in the next three years
Data Center Growth Trends
- Demand remains very strong in the design and construction of data center markets.
- Single deployments are growing and reaching +1GW and many +200MW deals are common
- AI demand is leading the growth
- Projects of these sizes are driving greater supply/demand imbalance
- Demand is increasing and should continue through 2026
- Generator, UPS and Battery demand continues to grow and impact supply
Impact on Data Centers and UPS Manufacturers
Data centers rely on backup power systems to ensure uninterrupted operation in case of grid failures or natural disasters. Batteries are one of the key components of backup power systems, as they can provide instant and reliable power supply in emergency situations. However, batteries also pose challenges for data center operators and UPS manufacturers as the demand for batteries is expected to increase significantly in the next three years and as data center growth is driven by factors such as cloud computing, artificial intelligence, 5G, and edge computing. This report aims to identify battery supply chain challenges and alert data center operators and UPS manufacturers of potential supply issues.Recommendations
- In light of the above demand and supply issues, the following recommendations for data center operators and UPS manufacturers:
- Ensure their existing battery vendors are prepared and have production capacity for demand
- Evaluate additional battery vendors in the event of supply shortages from existing vendors
- Maintain at least two if not more reliable and quality suppliers
- Continue to evaluate Lithium LFP technologies and suppliers
- Forecast to suppliers of demand for 2024-2026 to assure supply
- Delays in construction will occur but having supply of batteries in vendor facilities will allow for flexibility
- Initiate letters of intent to assure supply when needed
Why choose MPINarada batteries for your UPS systems?
MPINarada is a global Lithium LFP and VRLA battery manufacturer for UPS systems and data centers. Having six manufacturing facilities producing VRLA and lithium batteries and over $2B in annual revenue.- Manufacturer of high-rate UPS batteries with the same form fit and function of USA battery manufacturers. Direct cross to the most common VRLA batteries.
- LFP lithium battery manufacturer and integrator (safest lithium technology)
- MPINarada sales team is highly technical and supported by a world class engineering organization
- USA localized warehouses in TX, NJ and CA
- Shipping from stock in the USA
- Best warranty in the industry
- Competitively priced
Contact us to find out how MPINarada can help you!
