The Next Era of Data Center Power: Trust, Sustainability, and Innovation

It’s not a stretch to say that tomorrow’s winners are likely data center leaders who learn today to more skillfully manage their energy resources — including battery storage.

Data centers, big and small, are amid a period of dramatic transformation. To meet runaway demand for AI applications, data centers are deploying huge numbers of high-performance and energy-gobbling processors. As data centers worldwide scramble to acquire new sources of electricity to power these chips, they’re also searching for ways to get the most out of existing energy sources.

To shed light on the state of data center energy storage and explore where the industry is headed, ZincFive and Data Center Frontier conducted the 2024 Data Center Energy Storage Industry Insights Report, surveying 117 global industry professionals across diverse backgrounds, locations, job levels, and business areas. 

In terms of energy use, 30% said their data centers employ less than 5 megawatts (MW) across all campuses, more than a third (36%) use more than 100 MW and 23% use over 500 MW. The job levels of respondents also varied. Nearly a full third (32%) identified themselves as a senior manager, vice president, director or department head. About a quarter (24%) said they were project, technology or team. 

From this wide-ranging pool, the report highlights important industry trends that involve usage, priorities, challenges and the impacts of AI.

Dissatisfaction is Apparent

One of the report’s most important revelations is that many data center managers lack a high degree of trust in their backup systems. Only a third of respondents (34%) said they completely trust them. 

When asked about the factors driving them to consider changing their energy storage technology, 50% indicated technology limitations, such as reliability. 

Respondents were clear about what was lacking in their current battery technology. When asked what their current battery backup/energy storage technology failed to offer them, those surveyed listed the following top four priorities in order of mention frequency: long life, reliability, sustainability, and cost reduction.

Safety First

Additionally, a large percentage indicated that safety is a serious concern. When selecting an energy storage solution, seven in ten respondents (69%) said safety of battery chemistry was a priority (top priority + high priority). 

Lead-acid and lithium-ion batteries exhibit thermal runaway and pose a safety risk. In contrast, a pioneering battery chemistry, such as nickel-zinc (NiZn), retains thermal stability at high discharge rates, and isn’t flammable. 

Sustainability and Footprint

The survey showed that sustainability is important to 81% of respondents, with many data centers (64%) assessing supply chain sustainability and tackling Scope 3 emissions.

Creating environmentally friendly data centers has become a key issue as policymakers globally demand operators do more to reduce their carbon footprints. In the United States, the Biden administration last summer met with large tech companies to persuade them to invest in climate-friendly power sources to offset the spike in electricity demand. Regulators in the European Union have begun requiring data centers to report energy consumption emissions and performance metrics as part of an effort to reduce greenhouse gasses 55% by 2030. 

At the same time, a growing number of regional groups have cropped up in recent years to oppose the building of new data centers.   

Not only can investing in eco-friendly systems and procedures help data centers become better neighbors, but two-thirds of the survey’s respondents (63%) said that their organization’s sustainability programs have resulted in some cost reductions, with one in five (19%) seeing significant cost reductions.

Stored Energy Opportunities

In the ultra-competitive climate data centers now find themselves, operating at maximum efficiency and controlling costs is paramount.

Rising demand for AI applications will continue to drive up energy and operating expenses for data centers. The survey indicated that energy storage is an area within data centers where cost savings can be found. 

Two in three survey respondents said the lifetime cost consideration/total cost of ownership of energy storage was a priority. When it came to the cost of battery types, nearly 60% of respondents graded nickel-zinc second highest (excellent + very good + good) just behind lead-acid.

2024 Data Center Energy Storage Industry Insights Report

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The report illustrated the many changes occurring in data centers and the equal number of challenges. But the survey also showed how respondents have begun turning to new cost-saving, eco-friendly and safer technologies, such as nickel-zinc to help them thrive in today’s competitive environment.