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Data Center Energy Storage Market Size, By Data Center Size, By Tier, By Technology, By Application, Growth Forecast 2025 – 2034
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Data Center Energy Storage Market
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Base Year: 2024
Companies covered: 20
Tables & Figures: 300
Countries covered: 23
Pages: 175
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Data Center Energy Storage Market Size
The global data center energy storage market was valued at USD 2 billion in 2024 and is estimated to register a CAGR of 7.7% between 2025 and 2034. As data centers increasingly turn to non-emitting energy solutions, there is a noticeable rise in the need for Battery Energy Storage Systems (BESS). By minimizing dependence on conventional electrical grids and promoting the use of green data center systems, the energy produced from the consumed electricity can be saved in a dependable manner since solar or wind energy can be harnessed.
It could be reasoned that this growing trend towards technologies that are greener and more energy efficient is one of the major reasons boosting the growth of the BESS market, as companies wish to meet their sustainability objectives whilst also guaranteeing reliable power for the functioning of their centers. For instance, Schneider Electric announced the sale of a BESS that is suitable for energy provisioning at construction sites that are cost effective, expansion friendly, and are to be completed in April of 2024.
The system is versatile as it operates on both AC and DC systems and its working output ranges from 60 kW to 2 MW. Energy storage systems have become a must for modern data centers, especially with the soaring electricity use and traffic surge which can lead to outages, a potent and scalable backup is indispensable. The data center industry has different energy requirements and this is why there are batteries with 2-hour and 4-hour sizes, which can be attached to the servers or cooling systems.
Balanced effectiveness and reliability is the focus, and with that being said, it is evident how important energy storage have become. With the use of energy storage technologies such as BESS, backup power for data centers is now readily available without any reliance on fossil fuels. Such means are critical for empowering techniques such as load leveling and peak shaving in high power operation, and act as a backup during critical circumstances, which is essential for the energy storage market in the data centers industry.
Data Center Energy Storage Market Trends
Decarbonization efforts across the globe and the quest to meet Net Zero emissions targets is a very strong motivator for energy storage solutions in data centers. There is an international inclination to implement green energy measures, as well as technologies that assist in integrating energy storage systems and increasing energy efficiency. For instance, in October 2023, Saft compensated Microsoft in view of its intention to convert the datacenter in Sweden that currently uses diesel generators by BESS technologies’ ecofriendly tools. This was integrated in June 2023 and is a part of Microsoft’s Net Zero Plans which aims to eliminate diesel use in data centers by 2030.
Due to the high upfront cost needed to acquire large-scale energy storage systems, the growth opportunities for the market are undermined. It is true that in the long run energy saving and improvement in energy efficiency will pay off, but the cost of acquiring and installing energy storage technologies remains a limitation for small players in the data center market. In addition, the cost and organizational challenges of incorporating these systems into established infrastructures, particularly in aging data centers, are significant barriers as well.
Data Center Energy Storage Market Analysis
Data Center Energy Storage Market Share
Data Center Energy Storage Market Companies
Major players operating in the data center energy storage industry include:
The competition within the data center energy storage market is fragmented, composed of technology providers and electric power companies who strive to improve the efficiency and green status of data centers. The leading companies in the abovementioned market are working on comprehensive energy storage solutions, such as advanced batteries, hybrid energy systems and energy storage systems and technologies.
The companies are taking advantage of the rising demand for energy saving, devising modular storage solutions that allow data centers to control power demands, cut down costs, and have quality backup power. Such solutions are frequently implemented where there is existing energy infrastructure, but there are also regulatory policies for energy and sustainability compliance that need to be upheld.
Data Center Energy Storage Industry News
The data center energy storage market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Mn) from 2021 to 2034, for the following segments:
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Market, By Data Center Size
Market, By Tier
Market, By Technology
Market, By Application
The above information is provided for the following regions and countries: