The Critical Shift to Immediate Power Solutions (IPS) in Data Centers
In the ever-evolving landscape of energy storage, the choice of battery chemistry is a pivotal factor that can determine the success of our applications. Different battery technologies offer distinct advantages and disadvantages: some excel in delivering high power for brief intervals, while others provide sustained energy over longer durations at lower discharge rates. Additionally, these batteries vary in safety, reliability, and sustainability. As energy storage becomes increasingly integral to the 21st-century economy, it is critical to select the most appropriate battery solution for each application, rather than relying on a one-size-fits-all mentality.
Traditionally, long-duration energy storage has been encapsulated within the framework of Energy Storage Systems (ESS), commonly used for applications such as powering electric vehicles and consumer electronics. Conversely, short-duration applications, which prioritize immediate power output, fall under the category of Immediate Power Solutions (IPS). IPS applications demand instantaneous, high-rate power for durations ranging from minutes to microseconds. These solutions are vital across various sectors, including industrial manufacturing, electric vehicle charging infrastructure, and support systems that help long-duration energy storage and generation products achieve peak power.
One of the most fitting applications for IPS is in the realm of uninterruptible power supply (UPS) systems, where a battery backup temporarily supplies power for a system until a longer-term power source comes online. These short but pivotal moments can have significant financial and reputational implications, especially for data centers.
AI’s impact on data center power requirements
Read PostWith the exponential growth of consumer electronics, IoT, and AI, our reliance on digital infrastructure is at an all-time high, making data center uptime absolutely critical. To meet these escalating demands, data center operators must contend with workplace safety, rising real estate costs, and increased sustainability expectations from regulators, investors, and clients. These pressures are driving a transition toward backup power solutions that deliver greater reliability, space efficiency, and environmental responsibility.
The mounting demands on data centers have created an environment where reliance on traditional UPS systems, often powered by ESS, results in suboptimal performance. While legacy IPS solutions have historically been used, they frequently compromise on benefits such as footprint and sustainability. Fortunately, innovative IPS battery solutions have emerged, designed specifically to provide immediate, high-rate power essential for managing the critical transition between an outage and backup generator activation—all while improving on the shortcomings of legacy IPS and current ESS systems.
Lead-acid batteries, a long-standing IPS technology, are often seen as a familiar and reliable choice for UPS in data centers. However, they are increasingly recognized for their limitations in size, sustainability, and power output, making them less suitable in today’s context. Many data centers have relied on lead-acid due to its affordability and widespread availability in the past, but the good news is that enhanced alternatives are now on the market.
Lithium-ion batteries are another option frequently considered by data center operators for UPS systems, and their popularity grew due to their favorable weight and size compared to lead-acid solutions. As real estate costs escalate, the physical footprint of UPS systems has become a critical concern for operators looking to optimize space for revenue-generating servers. However, lithium-ion batteries are still classified as ESS because their limited discharge rates are designed to mitigate safety concerns, thus failing to fully meet the immediate power needs of UPS systems.
In contrast, nickel-zinc batteries present a compelling IPS solution, boasting significantly higher power density than both lead-acid and lithium-ion batteries. They can deliver immediate power to an entire data center while occupying less than half the space of traditional lead-acid systems, thus allowing for additional servers and increased revenue potential. Furthermore, nickel-zinc batteries enhance reliability and sidestep the thermal runaway risks associated with lithium batteries. Their lifecycle emissions are also substantially lower than those of lithium and lead-acid alternatives, with reduced resource consumption and environmental impact.
The Race to Reduce UPS Runtime: Why Backup Battery Selection Matters More Than Ever
Read PostTransitioning to advanced battery technologies previously posed challenges, including compatibility issues and high retrofitting costs, often stemming from the specialized safety equipment required for lithium-ion systems. However, recent developments in UPS cabinets designed for seamless integration into existing setups have changed the game. These innovations facilitate the straightforward replacement of ESS with IPS, enabling data centers to enhance efficiency, safety, and sustainability without the need for extensive system overhauls.
As data centers continue to be crucial players in driving the global economy, reliable UPS systems are indispensable. The need to increase power density and eliminate outage risks efficiently has shown that we need to look beyond traditional ESS systems. With the barriers to adopting advanced technology now addressed, data centers are well-positioned to maximize their reliability, safety, and efficiency by embracing Immediate Power Solutions in their UPS systems.
Previously published by Data Centre Review
Nickel-Zinc: The Data Center Shift Beyond Lithium-Ion and Lead-Acid
Modern data centers are the backbone of digital operations, supporting AI, cloud computing, e-commerce, and more. As power consumption surges – especially due to AI’s high computational requirements – the need for reliable, efficient, and eco-friendly backup power is greater than ever. While lead-acid and lithium-ion batteries have long been widely used, nickel-zinc (NiZn) technology is emerging as a powerful alternative that is inherently more safe, reliable, and sustainable.
The Limits of Traditional Battery Technologies
Lead-acid batteries have historically been the standard for uninterruptible power supply (UPS) systems, valued for their affordability and reliability. However, in today’s high-demand environments, their large size, short lifespan, and relatively low energy density have made lead-acid batteries a less efficient choice.
Lithium-ion batteries improved on some of these limitations with their compact design and longer lifespan. However, this chemistry presents well-documented risks, including thermal runaway and toxic gas emissions – factors that can carry serious operational and financial implications. Environmental and ethical concerns around lithium mining further complicate its role as a long-term fit for sustainable data center operations.
2025 Data Center Energy Storage Industry Insights Report
Read ReportThe Nickel-Zinc Advantage: Safer Power. Smarter Design. Sustainable Future.
Nickel-zinc batteries deliver a superior alternative to traditional chemistries – overcoming historical UPS limitations without compromise. Here’s why NiZn is quickly becoming a preferred choice for UPS systems:
1. Maximum Power, Minimal Footprint
NiZn immediate power technology delivers up to three times the power density of conventional battery solutions, while occupying just half the footprint and one-third of the weight. As data center operations continue to demand more power in existing or smaller spaces, high power density translates to direct savings. By packing more power into a smaller, industry-leading footprint, nickel-zinc solutions optimize floor space for critical, revenue generating equipment.
2. Exceptional Safety and Dependability
NiZn chemistry is fundamentally safe and does not pose a risk of thermal runaway at the cell level. It also operates effectively across a wider temperature range than both lead and lithium, reducing the need for extensive cooling infrastructure.
Nickel-zinc batteries deliver consistently high dependability without compromising safety. Unlike lithium-based chemistries that may require system shutdowns through battery management systems (BMS) to prevent thermal runaway, NiZn systems remain operational—even if a single cell becomes weak or depleted—ensuring continued performance with minimal downtime.
Thanks to its inherently safe chemistry, NiZn does not require trading off reliability for safety. Even during unexpected cooling system failures, NiZn batteries continue to operate safely and reliably and remain under warranty for their full-service life. NiZn batteries are warrantied to perform reliably even with occasional exposure to elevated temperatures up to 50°C, offering added peace of mind in demanding operating environments.
3. Longevity and Cost Efficiency
With a 10-year warranty and service life of up to 15 years, NiZn batteries outlast traditional chemistries in lifespan and value. The frequency of nickel-zinc replacements and maintenance is significantly lower compared to lead-acid and lithium-ion, contributing to a higher overall cost of ownership for these legacy chemistries. Alternatively, the durability, longevity, and low maintenance of NiZn contributes to an overall lower total cost of ownership (TCO), making this chemistry a financially sound investment for data centers.
4. Sustainability Without Compromise
With increasing consumer and regulatory requirements, sustainability has emerged as a key focus for many organizations. The 2025 Data Center Energy Storage Industry Insights Report reveals that 87% of respondents consider sustainability a priority, up from 81% in 2024. Additionally, 72% of respondents report that their organization’s sustainability efforts have resulted in cost reductions, nearly a 10% increase from last year.
ZincFive’s nickel-zinc (NiZn) battery technology delivers a sustainable and recyclable backup power solution with the highest positive climate impact, when compared to traditional lead-acid or lithium-based systems. NiZn batteries boast an operational lifespan up to three times longer than lead-acid counterparts, minimizing waste and reducing replacement needs. In addition, the lifetime greenhouse gas emissions from NiZn solutions are 25–50% lower than lead-acid and lithium-ion alternatives, and utilize conflict-free, widely-available materials. Nickel and zinc are both highly recyclable, and significantly more abundant in the Earth’s crust than lithium and lead. From cradle-to-grave, nickel-zinc solutions are the more sustainable and environmentally responsible choice for energy storage and immediate power in modern data centers.
AI’s impact on data center power requirements
Read PostSupporting AI’s Energy Demands with Nickel-Zinc
As AI-driven tools and applications demand immense computational power, data centers are faced with frequent and intense energy surges. These rapid power spikes, numbering millions monthly, are a result of GPU clusters operating at peak capacity. Lead-acid batteries struggle to perform in these high-cycle environments, making this chemistry a less effective choice for the future. While lithium-ion systems can manage typical battery cycling, this chemistry experiences performance degradation under extreme load fluctuations common with AI. Nickel-zinc systems, alternatively, demonstrate highly effective load management of rapid pulsing present in AI load profiling. With its rapid discharge and recharge capability and high-power density, nickel-zinc chemistry efficiently manages AI-driven power spikes without compromising performance.
Nickel-Zinc: Powering the Next Generation of Data Centers
As data center needs and digital infrastructure rapidly evolve amidst the growing use of AI, nickel-zinc continues to rise as the future-proof energy storage solution. With millions of operating hours across multiple industries, NiZn delivers high-power density and a compact footprint that is unmatched by traditional chemistries. Coupled with a long lifespan, inherent safety and reliability benefits, and notable sustainability advantages, NiZn chemistry is a strong and resilient alternative to legacy battery technologies. With an unshakable standard of high performance under the peak loads of today’s digital landscape, nickel-zinc chemistry is the sustainable, compact, and cost-effective solution capable of growing the data centers of tomorrow – all without compromise.
Previously published by Data Center Frontier
Why data centers need Immediate Power Solutions (IPS) to meet unique requirements
Data centers are experiencing a surge in energy demand – expected to increase by about 400 terawatt-hours at a CAGR of 23 percent between 2024-2030. Along with accommodating this rising power demand, to truly become smart and efficient, data center operators must also be mindful of workplace safety, manage rising property costs, and respond to increasing sustainability concerns from both regulators and clients.
While challenging, these changing trends offer rich opportunities for innovations in backup power solutions that not only meet rising power demand but also allow for greater reliability, space efficiency, and environmental stewardship. Traditionally, long-duration energy storage applications, also known as Energy Storage Systems (ESS), were the most available and thus preferred choice. However, with more cognizance of making operations efficient, there is an enhanced focus on Immediate Power Solutions (IPS) that emphasize power density over energy density to make for more robust operations in data centers that have complementing needs.
We believe that the success of a data center will hinge on how effectively it adopts innovative power solutions, utilizing both ESS and IPS strategically and holistically.
Understanding IPS
To understand the applicability of IPS, we must first understand the fundamental difference between long and short-duration energy storage. In the former, storage capacity (i.e., energy density) is the highest value characteristic; while in the latter, discharge capacity (i.e., power density) is the highest value characteristic. Now, with more sophistication in technology and demands to overcome the tendency of adopting a ‘one-size-fits-all’ approach, there is a growing realization that some applications will prioritize storage capacity, while for others, discharge capacity is of greater importance. Duly, this has necessitated the creation of a new category aptly named Immediate Power Solutions (IPS).
Immediate Power Solutions (IPS): A Vital Component in Modern Data Centers
Read PostA key requirement of IPS applications is the availability of instantaneous, high-rate power for a range of minutes to microseconds. Applications for this type of short-duration power delivery exist across multiple verticals including industrial and manufacturing, electric vehicle charging infrastructure, and even support for long-duration energy storage and generation products as they ramp up to peak power.
Among all these, one of the most notable and fitting applications for IPS is in powering uninterruptible power supply (UPS) systems in data centers, helping address GPU and AI pulse load concerns.
With the recognition of possibilities in adopting IPS, the short-duration energy storage stakeholder community can now effectively identify and differentiate their requirements from the long-duration labels used inefficiently due to the lack of an alternative. For example, the effect of this overlap can be seen in the ever-growing dependence on lithium-ion rechargeable battery technologies, which are inherently high energy density chemistries. While excelling in long-duration energy storage applications, such as in renewables grid storage and EVs, these battery solutions are not the most suitable for applications requiring a burst of power for short durations – as we see in UPS deployed in data centers and in rack with AI/HPC computing applications. Yet, due to familiarity or availability, or both, they have also been applied to short-duration applications compromising on the efficiency of a data center.
Choose your chemistry wisely
After conquering the first step of recognizing the potential and adopting IPS for data centers – the next step is to identify the materials that can amply reflect the benefits of short-duration energy storage. Here, nickel-zinc batteries are emerging as the preferred choice surpassing its conventional competitors in the lead-acid and lithium-ion categories.
One of the earliest IPS technologies, lead-acid batteries, are often perceived as a familiar, safe, and affordable choice. Yet, over time, these materials have displayed shortcomings in size, sustainability, and power, eclipsing their suitability in favor of more advanced technologies. Lithium-ion batteries, on the other hand, have gained popularity due to their weight and size, vis-a-vis their lead-acid counterpart. While they help save on space in comparison to lead-acid – a crucial concern for data center operators in increasing profitability – their rate of power discharge and power density does not allow the demands of a thorough UPS to be truly optimized.
A key factor to consider when comparing battery chemistries is their slew rate, which refers to how quickly a battery can release the desired amount of energy. Within a UPS system, a high slew rate is crucial to ensuring an outage is avoided in time. While an IPS can deliver power immediately, an ESS may require up to 20 seconds to reach the necessary output of power, which is an eternity for such an application. While this ramp-up period is fine for other applications, a data center avoiding outage is much better served by an IPS.
Powering the Future: Nickel-Zinc Batteries Unlock Data Centers’ AI Potential
Read PostIPS solutions such as nickel-zinc offer key advantages in terms of space and business efficiency. They can deliver immediate power to an entire data center while occupying less than half the space of incumbent systems, freeing up room for additional servers and positively impacting revenue. Nickel-zinc batteries also provide better reliability and avoid the thermal runaway concerns of alternative battery chemistries, reducing the risk of outages and the cost of additional safety precautions.
IPS batteries can also deliver improved sustainability, reducing scope 3 emissions for customers. Data center sustainability can be a key deciding factor for data center operators, including hyperscalers, who are racing to meet their emission reduction goals across their operations. With much of their services tied to data centers, meeting facility power needs sustainably is a priority. IPS batteries like nickel-zinc boast lifecycle emissions much lower than those of lithium and lead-acid batteries, with reduced water usage and volatile organic compounds as well.
Recognizing the role of IPS allows for a more holistic strategy of aligning business operations with larger concerns of sustainability and profitability. The increasing demand for data centers will have strong implications on the power value chain. Making the most efficient choices now will have strong long-term implications – and here, adopting new technologies and optimizing designs to leverage immediate power solutions can be smart choices leading to efficiency gains.
Previously published by Energy Storage News
Europe’s Balancing Act: Sustainability and AI
If 2023 was the year artificial intelligence (AI) took the world by storm, 2024 is the year that regulators took notice. Around the globe, rules are being drafted, passed and implemented to ensure that the development of AI doesn’t infringe upon human rights or universal values and priorities, such as environmental stewardship.
Nowhere is this more evident than in Europe, where regulators have been busy approving new rules over the use of AI, as well as its underlying infrastructure, including data centers. At the same time, regulators claim they want to foster an environment that encourages AI innovation. According to the European Union, “The European AI Strategy aims at making the EU a world-class hub for AI and ensuring that AI is human-centric and trustworthy.”
Implementing regulations without stifling innovation is always a challenge. Enacting sustainability rules will be especially challenging now, as AI dramatically increases the digital economy’s energy consumption. In Europe, sustainability is at the forefront, but this new dynamic has left the path forward somewhat unclear. It will be up to regulators and industry stakeholders alike to live up to sustainability expectations while supporting Europe’s fledgling AI ecosystem.
The energy demands of AI
Artificial Intelligence became a mainstream tool in late 2022, with the launch of OpenAI’s virtual assistant, ChatGPT [4.0?], an advanced Large Language Model (LLM). Not long after, the energy implications of AI became clear. The International Energy Agency (IEA) noted that ChatGPT 4o uses on average 2.9 watt-hours (Wh) of electricity every time it answers a user request. By comparison, a typical Google search takes just 0.3 Wh.
In 2022 — with little to no LLM deployments — data centers consumed 460 terawatt-hours (TWh) of electricity globally, accounting for 2% of the world’s energy usage. With the emergence of purpose-bult AI datacenters for LLM workloads, that is changing quickly. Earlier this year, the IEA forecast that by 2026, the electricity consumption of data centers could more than double, surpassing 1,000 TWh.
AI’s impact on data center power requirements
Read PostIn the EU, data centers in 2018 consumed 76.8 TWh of energy, accounting for 2.7% of the region’s electricity demand. By 2030, it could reach at least 3.2%. With AI on the rise, as well as other energy-intensive technologies like virtual reality and cloud gaming, Ireland’s data centers could double their electricity use by 2030, according to IEA estimates, while Denmark’s data centers could see a 6-fold increase in the electricity use.
Europe’s new data center sustainability rules
Amid this environment of new, energy-hungry AI applications, the EU is about to implement new sustainability rules. Starting in September, data center operators in EU nations will have to follow the updated Energy Efficiency Directive. This will require them to regularly disclose their energy and water consumption, demonstrate their use of renewable energy sources and measure the effectiveness of cooling systems, among other things. The goal is to reduce EU energy consumption by 11.7% by 2030, relative to the forecast energy consumption for 2030 made in 2020.
Data center operators will also have to follow new sustainability requirements included in Europe’s pioneering AI rules. Earlier this year, the EU passed the AI Act, the world’s first major piece of legislation to impose rules governing the use and development of AI. The law creates a framework of principles for regulating AI. For instance, given the risks associated with biometric identification systems, the use of remote biometric identification in public spaces for law enforcement purposes is, in principle, prohibited.
Three ways to sustainably optimize your backup power system
Read PostIn terms of sustainability, the new law will require some AI practitioners to document and report on AI systems’ energy consumption, as well as the energy-efficient development of AI models.
However, as noted by digital policy expert José Renato Laranjeira de Pereira, European lawmakers did significantly weaken the environment-related provisions in the AI Act before approving it. This move seemingly speaks to the concern lawmakers have over imposing onerous regulations.
The next move for data center operators
While the regulatory environment in Europe may still be in flux, many data center operators have historically focused on energy management issues as part of their sustainability efforts and therefore should, be ready to meet some minimum requirements.
When regulators come knocking, for instance, data centers should demonstrate their embrace of “circularity” — a holistic approach to minimizing waste and pollution. This means that data center operators will have plans for using equipment with long lifespans and for recycling or reusing their infrastructure. Resources, like tools from the CEDaCI (Circular Economy for the Data Centre Industry) project, can help data center stakeholders make sustainability-focused decisions, such how to refurbish or properly dispose of servers.
Certain pieces of infrastructure lend themselves to this sustainable approach, such as battery backup systems powered by ZincFive’s nickel-zinc (NiZn) batteries. NiZn batteries are highly recyclable, making them a logical component of a “circular economy.” Additionally, NiZn batteries’ lifetime greenhouse gas emissions are 4X lower than lead-acid emissions and 6X lower than lithium-ion emissions. They’re also made with common, widely available, conflict-free materials. ZincFive is actively developing supporting documentation and life cycle analysis reports, such as EcoPassport, to help guide and assist customers on their sustainability journey.
Balancing AI’s potential and pitfalls in data center operations
Read PostMeanwhile, NiZn batteries have an operating life up to 3x that of traditional lead-acid batteries, and thanks to the stable, non-corroding positive nickel current collector in nickel-zinc batteries they don’t go into thermal runway at the cell level providing lower risk operations in the datacenter. ZincFive offers a NiZn drop-in replacement for lead-acid UPS batteries. It uses the same charging system as lead-acid batteries, creating a smooth replacement process.
Choosing the right power and backup systems is simply the first step data center developers and operators should take to prepare for the new regulatory environment in Europe. The advancement of AI will only make sustainability goals harder to reach, making smart, foundational decisions related to infrastructure all the more critical.
Previously published by Intelligent Data Centres
Immediate Power Solutions (IPS): A Vital Component in Modern Data Centers
The rapid evolution of technology—spanning online services, consumer electronics, IoT, and AI—has amplified our reliance on digital infrastructure and emphasized the importance of uninterrupted data center operations. This technological surge is driving advancements in electrical infrastructure, particularly in energy storage, due to evolving needs. Data center operators face the challenge of addressing these increasing demands while also managing workplace safety, rising property expenses, and sustainability issues. Consequently, there is a noticeable shift towards backup power solutions that prioritize greater reliability, space efficiency, and environmental stewardship.
The growing pressure on data centers has brought Immediate Power Solutions (IPS) to the forefront as a crucial category of energy storage. IPS addresses the evolving digital infrastructure landscape by focusing on the immediate, high-rate power necessary for critical operations, distinguishing it from traditional Energy Storage Systems (ESS). Unlike ESS, which focuses on long-duration capacity, IPS is designed to deliver high-rate power instantly for short durations, emphasizing reliability and efficient space use.
When assessing mission-critical backup applications through the IPS framework, the suitability of different systems becomes clearer. For example, lead-acid batteries, which utilize one of the oldest battery technologies, are frequently viewed by many data center operators as a traditional and reliable choice for data center uninterruptible power supplies (UPS). However, given today’s data center requirements for safety, reliability, sustainability, and space efficiency, more advanced battery technologies have now surpassed lead-acid in their suitability for the sector.
The Next Era of Data Center Power: Trust, Sustainability, and Innovation
Read PostOne alternative considered by data center operators for their UPS systems is lithium-ion, an ESS battery. These batteries’ energy density—characterized by their ability to release moderate amounts of energy over extended periods—makes them well-suited for applications such as electric vehicles and consumer electronics. However, data centers need a different capability: the ability to deliver rapid, high-power bursts to keep operations running during power outages until backup generators activate. While lithium-ion batteries are effective for sustained energy output, they may not meet the immediate high-power demands required for data centers. In contrast, IPS solutions are specifically designed to provide the rapid, high-power energy needed during these critical moments and do not have the same space and safety challenges associated with lithium-ion batteries.
Recent advancements in battery technology have introduced solutions specifically tailored for IPS needs. Notably, nickel-zinc batteries represent a breakthrough innovation in this field. Their enhanced power density allows them to deliver substantial bursts of energy rapidly while occupying less than half the space of conventional lead-acid systems. Their compactness and efficiency are particularly advantageous for data centers, as they align with the core objectives of IPS by optimizing space usage, supporting uninterrupted data center operations, and improving overall operational effectiveness and reliability.
IPS batteries can also contribute to UPS systems’ reliability and safety. Unlike other batteries that may experience cell failures, batteries such as nickel-zinc maintain conductivity even if some cells are depleted, ensuring continuous operation. They also avoid thermal runaway and tolerate higher temperatures better than other types, adding an extra layer of safety and stability crucial for maintaining uninterrupted data center operations.
As environmental concerns increasingly influence technological development, IPS is advancing to meet new sustainability standards as well. Nickel-zinc batteries, for example, are designed with sustainability in mind, offering lower lifecycle emissions and reduced resource consumption. They require fewer resources during production and utilize abundant, less environmentally taxing materials.
AI’s impact on data center power requirements
Read PostBy adopting IPS for UPS, data centers not only achieve their sustainability goals but also benefit from high-performance energy storage solutions. This alignment with environmental objectives, combined with the efficient power delivery and space optimization inherent to IPS technologies, underscores the critical role of innovative solutions in advancing both operational effectiveness and ecological responsibility in modern data centers.
Finally, transitioning to advanced IPS technologies is becoming increasingly seamless thanks to recent innovations in battery technology. These advancements have simplified the integration of new solutions into existing systems, allowing data centers to upgrade to more efficient and sustainable IPS options with minimal disruption. This streamlined process not only enhances operational efficiency but also ensures that data centers can quickly adapt to the evolving demands of modern infrastructure, positioning them for long-term success.
As the global economy relies more on data centers, the need for reliable UPS systems to ensure uninterrupted operations has become increasingly critical. This growing demand for dependable, space-efficient, and eco-friendly backup power solutions is driving the shift towards IPS. Their alignment with the challenges they’re solving, as well as the seamless integration into existing systems, facilitates a smoother transition to advanced battery solutions, ensuring that data centers remain resilient and future-ready.
Previously published by Datacentre Solutions
Immediate Power Solutions (IPS): Definition, Benefits, and Impact
Read Paper 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
Read ReportThe 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.
Data Center Backup Power: Unlocking Shorter UPS Runtimes
As businesses increasingly rely on digital infrastructure, uptime is everything; even a brief power outage can have severe consequences. Uninterruptible Power Supply (UPS) systems are the first defense against downtime, ensuring continuous power flow. Recent advancements in generator technology and power architecture have enabled faster automatic failover processes, creating the opportunity for reduced UPS battery runtimes. Data centers that once relied on 30-minute runtimes are now embracing runtimes of under five minutes – and now, many are aiming for three-minute runtimes.
This race to reduce UPS runtime has made traditional battery technologies, like lead-acid, struggle to deliver short-term power cost-effectively. Short-term, high-power applications require batteries with both high power density – the ability to release vast amounts of power over a short time – and high discharge rates. However, lead-acid batteries have a relatively low energy density, which forces data centers to purchase and deploy more of them to handle the required load.
Meanwhile, some alternatives like lithium-ion batteries are constrained by lower discharge rates due to their risk of thermal runaway. The built-in safety mechanisms of lithium-ion battery management systems (BMS) trigger automatic shutdowns if the discharge current exceeds preset thresholds. While this safeguard helps prevent battery fires, it also effectively cripples the UPS system when it’s needed most. And in both lithium and lead-acid batteries, a single failed cell blocks the current flow from surrounding cells, creating an open circuit that can bring down the entire battery string in an outage.
AI’s impact on data center power requirements
Read PostTo compensate for these shortcomings, data centers have long resorted to oversizing their battery banks. By purchasing more cabinets than strictly necessary, they aim to ensure an adequate power supply during failover events. However, this approach comes at a steep cost – both in upfront expenses, and in valuable floor space that could otherwise be used for revenue-generating servers. These challenges are prompting operators to explore innovative solutions, like nickel-zinc batteries, to optimize their backup power systems.
Combining high power density with high discharge rates, nickel-zinc batteries bring a new level of reliability, safety, and cost-effectiveness to short-term high-power applications. Nickel-zinc batteries provide three times the power density of lead-acid and twice the carrying capability of lithium-ion batteries. Their added reliability stems from nickel-zinc battery cells’ ability to transmit power from the rest of the string, even if an individual cell is weak or depleted. This sets them apart from lead-acid and lithium-ion batteries – in which a single weak or depleted cell cripples the entire string – and ensures that the UPS system remains operational during vital seconds of failover.
In addition, nickel-zinc batteries don’t need the safety controls that constrain lithium chemistries. Since they’re incapable of thermal runaway, their BMS are designed to maintain optimal performance during rapid bursts of energy discharge, without the risk of automatic shutdowns. Their robust design enables them to deliver the vast amounts of short-term power needed to seamlessly bridge the gap between utility power loss and generator startup.
Runtime Optimization: As Data Centers Reduce UPS Runtimes, The Right Batteries Become More Critical
Read PostCombining greater reliability with greater power density and a high discharge rate, nickel-zinc technology empowers data centers to right-size their battery banks by eliminating the need for – and cost of – extra batteries to shore up system reliability. For instance, a typical 1MW UPS design with a 3-minute runtime target would require six or more lead-acid battery cabinets, and five or more lithium-ion battery cabinets. Meanwhile, nickel-zinc batteries can comfortably meet the same requirement with just three cabinets. By reclaiming this valuable floor space, data centers can allocate more room for revenue-generating equipment such as servers. And with fewer battery cabinets to purchase, install, and maintain, operators can benefit from significant upfront and operational savings – especially considering nickel-zinc batteries’ 15+ year lifespan and low maintenance needs.
As an added benefit, nickel-zinc batteries are also more sustainable than lithium-ion or lead-acid batteries. Their lifetime greenhouse gas emissions are four times lower than lead-acid batteries, and six times lower than lithium-ion batteries. As data centers and clients come under growing scrutiny for their carbon footprint, nickel-zinc batteries allow operators to offer their clients reduced Scope 3 emissions and compliance with stricter environmental standards.
As UPS runtimes continue to shrink, it’s crucial to choose a battery that consistently delivers vast short-term power during these critical moments. Nickel-zinc batteries provide the reliability and safety that data centers need to navigate the challenges of short-duration discharge, along with cost-saving efficiencies. By harnessing the potential of advanced battery technologies like nickel-zinc, operators can have confidence that their UPS systems will perform flawlessly when called upon and deliver unparalleled levels of performance, reliability, and efficiency.
Previously published by Data Center Frontier
