Global Leading Market Research Publisher QYResearch announces the release of its latest report “Lithium-ion Battery Energy Storage (BES) for Data Center - Global Market Share and Ranking, Overall Sales and Demand Forecast 2026-2032”. Based on current situation and impact historical analysis (2021-2025) and forecast calculations (2026-2032), this report provides a comprehensive analysis of the global Lithium-ion Battery Energy Storage (BES) for Data Center market, including market size, share, demand, industry development status, and forecasts for the next few years.

For data center operators, colocation providers, and enterprise IT facilities, the exponential growth of computing power—driven by AI, cloud services, and digital transformation—has created unprecedented demands for reliable, uninterrupted power. Traditional uninterruptible power supply (UPS) systems based on lead-acid batteries provide backup power but do little to address sustainability goals or operational efficiency. Lithium-ion battery energy storage (BES) for data centers addresses these challenges with cutting-edge technology dedicated to providing efficient and reliable energy reserve for data centers, designed to ensure power stability and continuity with rapid charge-discharge capabilities and high energy density. By optimizing electricity usage, this system significantly reduces data centers' reliance on the traditional power grid and cuts carbon emissions while playing a pivotal role in driving the transformation of data centers toward green energy. The global market for lithium-ion BES for data centers was valued at US$ 1,558 million in 2025 and is projected to grow at a robust CAGR of 10.8% to reach US$ 3,163 million by 2032, driven by increasing power demands of AI and HPC workloads, corporate sustainability commitments, and the shift from lead-acid to lithium-ion battery technology. In 2024, global production reached approximately 3,800 MW, with an average market price of US$ 370 per kWh.

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Market Definition and Product Segmentation
Lithium-ion BES for data centers represents a transformative category within the data center infrastructure market, distinguished by its integration of high-density lithium-ion batteries with advanced power conversion and management systems. These systems replace or augment traditional lead-acid UPS solutions, offering higher energy density, longer cycle life, and the ability to participate in grid services while providing backup power.

Cooling Technology Segmentation
The market is stratified by thermal management approach, each addressing distinct safety, performance, and space requirements:

Natural Convection Cooling: The established segment for smaller-scale deployments, utilizing passive airflow for thermal management, offering simplicity and lower initial cost for applications with moderate power density.

Liquid Cooling: The higher-growth segment for high-density, high-power applications, using liquid coolant circulation for superior heat dissipation, enabling higher power density and longer battery life in space-constrained data center environments.

Phase Change Material (PCM) Cooling: The specialized segment for applications requiring passive, high-capacity thermal buffering, using materials that absorb heat during phase transition to manage peak thermal loads.

Application Segmentation
The market serves critical data center infrastructure:

Data Center: The largest segment, encompassing hyperscale data centers, colocation facilities, and enterprise data centers where power resilience, space efficiency, and sustainability are priorities.

IT Room: Serving server rooms, network closets, and smaller IT facilities where compact energy storage solutions are essential.

Competitive Landscape
The lithium-ion BES for data center market features a competitive landscape combining global energy storage leaders, battery manufacturers, and power electronics companies. Key players include Saft Batteries, Exide Technologies, Siemens, LG, Samsung SDI, Equans, Fujian CATL, Shanghai Pylon Technologies, Shenzhen Ritar International Group, Jiangsu Shuangdeng Group, Zhejiang Narada Power Source, and Shandong Cospowers Technology.

Industry Development Characteristics
1. UPS Replacement and Upgrade Cycle

A case study from QYResearch's industry monitoring reveals that data centers are replacing lead-acid UPS batteries with lithium-ion systems. Lithium-ion offers 2-3x longer cycle life, smaller footprint (up to 50% space savings), and higher energy density—enabling more power capacity in existing floorspace.

2. Grid Services and Revenue Generation

Lithium-ion BES systems can participate in demand response and frequency regulation markets. A case study from the data center energy management sector indicates that BES can generate revenue by discharging during peak demand periods, offsetting costs and improving ROI.

3. Renewable Integration and Carbon Reduction

Data centers face pressure to reduce carbon footprints. A case study from the sustainability sector indicates that BES enables data centers to store renewable energy generated on-site or purchased from off-site sources, powering operations with clean energy during peak times.

4. AI and High-Density Computing Power Demands

AI clusters and high-performance computing require high-density power delivery. A case study from the data center design sector indicates that lithium-ion BES with high discharge rates supports the high power demands of GPU clusters while providing grid stabilization.

Exclusive Industry Insights: The UPS-to-BES Evolution
Our proprietary analysis identifies the evolution from traditional UPS to integrated battery energy storage systems as a defining trend. Modern lithium-ion BES systems go beyond backup power to provide energy management, grid services, and renewable integration. Data center operators increasingly view BES not as a cost center (UPS) but as an asset that can reduce electricity costs, generate revenue, and support sustainability goals. Manufacturers offering integrated power management software alongside battery hardware capture the highest value in this evolving market.

Strategic Outlook
For industry executives, investors, and marketing leaders evaluating opportunities in the lithium-ion battery energy storage for data center market, the projected 10.8% CAGR reflects sustained demand from AI-driven power growth, sustainability commitments, and the transition from lead-acid to lithium-ion technology. Manufacturers positioned to capture disproportionate share share three characteristics: demonstrated expertise in high-density battery systems, thermal management, and power conversion; product portfolios spanning multiple cooling technologies; and established relationships with hyperscale data center operators, colocation providers, and enterprise IT facilities. As the market evolves toward integrated energy management platforms and grid-interactive data centers, the ability to deliver reliable, efficient, and sustainable BES solutions will define competitive leadership.

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