Data centers drive global demand for energy storage and sodium-ion batteries

The rapid expansion of artificial intelligence and cloud computing is transforming data centers into massive energy consumers. As of late September, there are 12,259 data centers globally, with the United States hosting approximately 40% of them, followed by the United Kingdom, Germany, France, and China.

To ensure the 24/7 continuous operation required by these digital infrastructures, there is an increasing necessity for energy storage solutions. Kadem Usta, President of the Battery Manufacturers and Suppliers Association (PİLDER), noted that current electrical grids often struggle to meet the sudden and massive power demands of these facilities, making Fixed Energy Storage Systems (BESS) essential.

In the battery sector, a shift toward sodium-ion technology is emerging as an alternative to lithium-ion. US-based company Unigrid has begun shipping 9 kWh sodium-ion home batteries to Europe to meet rising demand for residential energy storage. While sodium-ion batteries have lower energy density than lithium-ion, they offer lower production costs, improved safety, and the ability to operate in extreme temperatures as low as -40 degrees Celsius. Although China currently leads in sodium-ion production, the technology offers the potential for US-based supply chains to reduce reliance on Chinese-dominated lithium-ion markets.