Data Center Energy Storage Market To Reach $2.67 Billion By 2030

Data Center Energy Storage Market Growth & Trends

The global data center energy storage market size is estimated to reach USD 2.67 billion by 2030, registering a CAGR of 9.5% from 2025 to 2030, according to a new report by Grand View Research, Inc. The data center industry has been growing owing to the rise in the adoption of cloud computing and the high penetration of smart phones. The workload on the data centers has increased exponentially which has contributed to varying load demands, in turn, increasing the power consumption. The increased power consumption has created a necessity for deployment of Energy Storage Devices (ESDs), which can provide swift demand response to the changing loads and provide efficient power management.

The energy storage in the data center has been used as a backup method to handle power outages until diesel generators are brought online. This typically takes a few seconds or a couple of minutes. ESDs are capable of discharging energy whenever there is a requirement. The devices equipped with high energy density can provide power backup for longer durations as compared to super capacitors. UPS acts as a backup device that can sustain the load of the entire system for a short interval of time, acting as a backup solution during power cuts. As a result, several data center UPS manufacturers are focusing on improving the efficiency for maintaining the ideal power usage by using efficient ESDs. This, in turn, is anticipated to boost market growth during the forecast period.

Energy storage in data centers is usually made up of lead-acid batteries and is used as centralized uninterruptible power supply. Potential ESDs include li-ion batteries, flywheels, supercapacitors, and compressed air energy storage. Li-ion and lead-acid batteries are mostly implemented as ESDs owing to their high energy density and reliability. Particularly, Li-ion batteries have considerably high efficiency, high energy density, long cycle life, and environmental friendliness, and hence are one of the most promising ESDs.

Based on geography, North America was the leading revenue contributor in 2019 and is poised to witness remarkable market growth over the forecast period. The region is characterized by the presence of several data center clusters and provides plenty of colocation opportunities. The regional growth is mainly backed by U.S., as the country represents about 50.0% of the data centers worldwide. Also, the growing usage of cloud computing applications and services coupled with the rising popularity of the Internet of Things (IoT) further drives the market in the region.

 Request a free sample copy or view report summary: Data Center Energy Storage Market Report

Data Center Energy Storage Market Report Highlights

• By type, the Tier 3 segment dominated the market and accounted for the revenue share of over 45.0% in 2024, driven by the increasing demand for high availability and robust business continuity among enterprises and service providers.

• By technology, the lithium-ion batteries segment dominated the market and accounted for the highest revenue share in 2024, driven by its superior performance characteristics compared to traditional lead-acid batteries.

• By capacity range, the 1 MW to 10 MW segment dominated the market and accounted for the revenue share of over 36.0% in 2024, driven by the expansion of mid-sized and large enterprise data centers and regional colocation and cloud facilities.

• By data center type, the colocation data centers segment dominated the market and accounted for the revenue share of over 34.0% in 2024, driven by the increasing outsourcing of IT infrastructure by enterprises seeking scalable, cost-effective, and resilient hosting environments.

• By application, the uninterruptible power supply (UPS) segment dominated the market and accounted for the revenue share of over 52.0% in 2024, driven by the evolution of UPS technology, particularly the transition from legacy valve-regulated lead-acid (VRLA) systems to lithium-ion-based and modular UPS systems.

• By vertical, the BFSI segment dominated the market and accounted for the revenue share of over 20.0% in 2024, driven by the sector’s need for exceptional data security, uninterrupted uptime, and rapid transaction processing.

Data Center Energy Storage Market Segmentation

Grand View Research has segmented the global data center energy storage market based on type, technology, capacity range, data center type, application, vertical, and region:

Data Center Energy Storage Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Tier 1

• Tier 2

• Tier 3

• Tier 4

Data Center Energy Storage Technology Outlook (Revenue, USD Billion, 2018 - 2030)

• Lithium-Ion Batteries

• Lead-Acid Batteries

• Flow Batteries

• Compressed Air Energy Storage

• Flywheel Energy Storage

• Ultracapacitors

Data Center Energy Storage Capacity Range Outlook (Revenue, USD Billion, 2018 - 2030)

• Up to 100 kW

• 101 kW to 1 MW

• 1 MW to 10 MW

• Above 10 MW

Data Center Energy Storage Data Center Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Colocation Data Centers

• Hyperscale Data Centers

• Enterprise Data Centers

• Telecommunication Data Centers

Data Center Energy Storage Application Outlook (Revenue, USD Billion, 2018 - 2030)

• Uninterruptible Power Supply (UPS)

• Load Shifting and Peak Shaving

• Renewable Energy Integration

• Backup Power

• Grid Stabilization

Data Center Energy Storage Vertical Outlook (Revenue, USD Billion, 2018 - 2030)

• Healthcare

• BFSI

• Manufacturing

• Retail & E-commerce

• Entertainment & Media

• Others

Data Center Energy Storage Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Australia

• Latin America

  • Brazil

• Middle East & Africa

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players in the Data Center Energy Storage Market

• ABB

• Delta Electronics, Inc.

• Eaton

• GE Vernova

• Huawei Technologies Co., Ltd.

• Legrand

• Mitsubishi Electric Power Products Inc.

• Saft

• Schneider Electric

• Vertiv Group Corp.