Data Center Lithium-Ion Battery Market Revenue to Attain USD 15.67 Bn by 2033

06 Aug 2025

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Table of Content

1. Data Center Lithium-Ion Battery Market Revenue and Trends 2025 to 2033 2. What are the Key Factors Boosting the Growth of the Data Center Lithium-Ion Battery Market? 3. Segment Insights 4. Regional Insights 5. Data Center Lithium-Ion Battery Market Coverage 6. Data Center Lithium-Ion Battery Market Key Players

Data Center Lithium-Ion Battery Market Revenue and Trends 2025 to 2033

The global data center lithium-ion battery market revenue surpassed USD 5.92 billion in 2025 and is predicted to attain around USD 15.67 billion by 2033, growing at a CAGR of 12.94%. The growth of the market is attributed to the increasing demand for reliable, energy-efficient backup power solutions, driven by the growth of cloud computing, data traffic, and green energy initiatives.

What are the Key Factors Boosting the Growth of the Data Center Lithium-Ion Battery Market?

The market is experiencing rapid growth, fueled by several key factors. One of the major factors includes the expansion of global data consumption and the widespread adoption of cloud computing, which are significantly impacting the market by creating a strong need for energy storage solutions that offer enhanced efficiency and scalability. Lithium-ion batteries are becoming the preferred choice due to their extended life cycle, faster charging capabilities, and reduced overall maintenance compared to traditional lead-acid options. The demand for UPS (uninterruptible power supply) systems is also on the rise, driven by the need for increased power in hyperscale and edge data centers. Additionally, environmental regulations and the global shift toward greener energy infrastructure are leading to increased investment in lithium-ion technologies.

Segment Insights

• By battery chemistry, the lithium-iron phosphate (LFP) segment sustained dominance in the market in 2024. The dominance of LFP stems from its enhanced safety, stability, and extended lifecycle. Its good thermal stability makes it a preferred choice for data center batteries.
• By data center type, the hyperscale data centers segment held the largest share of the market in 2024, driven by their massive scale, stringent reliability requirements, and substantial demand for backup power. High energy density and extended lifespan of Li-ion batteries make them suitable for hyperscale data centers.
• By application, the uninterruptible power supply (UPS) segment dominated the data center lithium-ion battery market in 2024 due to the increased demand for high-availability and high-speed backup power.
• By component, the battery racks/modules segment led the market in 2024. The dominance of battery racks or modules stems from their modular level of scalability, ease of installation, and optimized maintenance efficiency. The rising need for efficient backup power and uninterrupted operation in data centers further supports segmental growth.
• By end-user, the cloud service providers segment led the market in 2024 due to growth in cloud computing, ever-increasing uptime requirements, and efficient scalability.

Regional Insights

North America sustained dominance in the data center lithium-ion battery market by capturing the largest share in 2024. This is mainly due to heightened adoption of cloud computing, a large network of hyperscale data centers, and the expansion of edge computing. Stringent regulations regarding energy efficiency and emissions are encouraging data centers to adopt more efficient power solutions, including Li-ion batteries. Meanwhile, Asia Pacific is likely to expand at the fastest rate over the projection period due to rapid digitalization as well as expanding IT infrastructure. Rising investment in data center development is boosting the demand for high-performance and sustainable power solutions, supporting market growth.

Data Center Lithium-Ion Battery Market Coverage

Recent Development

• In December 2024, Eaton launched its Eaton Samsung Gen 3 lithium-ion battery system, a battery backup solution for data centers and medical and industrial customers. It provides power for energy storage and emergency backup power for uninterruptible power supplies (UPS) for IT infrastructure. (Source: https://insidehpc.com)

Data Center Lithium-Ion Battery Market Key Players

• Vertiv Group Corp.
• Eaton Corporation
• Schneider Electric SE
• Legrand SA
• Delta Electronics Inc.
• Huawei Technologies Co., Ltd.
• Samsung SDI Co., Ltd.
• LG Energy Solution
• Contemporary Amperex Technology Co. Ltd. (CATL)
• BYD Company Limited
• Toshiba Corporation
• Tesla, Inc.
• Panasonic Holdings Corporation
• Narada Power Source Co., Ltd.
• Lithium Energy Storage
• Saft Groupe S.A. (TotalEnergies)
• ZincFive Inc.
• Exide Technologies
• Hitachi Energy Ltd.
• Riello UPS (RPS S.p.A.)

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