# Data Center Energy Storage Market

> Data Center Energy Storage Market valued at USD 4.72 billion in 2025, forecast to reach USD 17.03 billion by 2035 at 13.69% CAGR, led by AI rack BBU.

Publisher: DC Market Insights  
Author: Satyabrat Rajawat, DC Market Insights  
Published: 2026-10-10  
Last updated: 2026-10-10  
Next review: Apr 2027  
Page: https://www.dcmarketinsights.com/report/data-center-energy-storage-market

## Key takeaways

- Rack Battery Backup Units Reach USD 2.64 Billion as Storage Moves into the Rack
- Campus BESS Grows 26.67% a Year as AI Sites Buffer Load Swings
- A Lithium-Ion Fire Took 647 Government Systems Offline
- GPU and Neocloud Operators Spend USD 3.83 billion by 2035

**Frequently Asked Questions**

**What is the size of the Data Center Energy Storage Market in 2025 and 2035?**

USD 4.72 billion in 2025, rising to USD 17.03 billion by 2035. DC Market Insights estimates the market at USD 1.55 billion in 2020.

**How fast is the Data Center Energy Storage Market growing?**

13.69% a year from 2025 to 2035. Growth was faster, at 25.01% a year, between 2020 and 2025 as rack battery backup spending rose (DC Market Insights estimate).

**Which application leads the Data Center Energy Storage Market?**

Rack-level battery backup units, with USD 2.64 billion or 56.0% of 2025 value. Facility-scale BESS is the fastest-growing segment at 26.67% a year.

**Which battery technology leads data center energy storage?**

Lithium-ion, with 82.9% of 2025 value, against 13.2% for VRLA lead-acid batteries, according to DC Market Insights estimates.

**How much does data center energy storage cost?**

About USD 380 per kW for rack BBU, USD 412 per kWh for centralized UPS batteries and USD 215 per kWh for campus BESS in 2025, according to DC Market Insights estimates.

**Which region leads the Data Center Energy Storage Market?**

North America, with USD 2.13 billion or 45.2% of 2025 value. The Middle East and Africa grows fastest at 16.30% a year.

**Who are the leading companies in the Data Center Energy Storage Market?**

Panasonic Energy is estimated to be the largest supplier, with more than 40% of 2025 value (DC Market Insights estimate). Tesla, Vertiv, Schneider Electric, Eaton, EnerSys, Samsung SDI, Fluence, Delta Electronics, Dynapack, Energy Vault, Cummins and Redwood Materials also compete.

**Which country spends the most on data center energy storage?**

USD 1.91 billion in the United States, or 40.5% of 2025 spending, followed by China at USD 460.47 million. India grows fastest among large country markets at 19.60% a year (DC Market Insights estimate).

## Market by region (USD million)

## Dataset

| Series | Value | Unit |
| --- | --- | --- |
| Market size 2025 | 4,720 | USD million |
| Revenue CAGR | 13.69 | % |
| Market size 2035 | 17,030 | USD million |

## Frequently asked questions

### What is the size of the Data Center Energy Storage Market in 2025 and 2035?

USD 4.72 billion in 2025, rising to USD 17.03 billion by 2035. DC Market Insights estimates the market at USD 1.55 billion in 2020.

### How fast is the Data Center Energy Storage Market growing?

13.69% a year from 2025 to 2035. Growth was faster, at 25.01% a year, between 2020 and 2025 as rack battery backup spending rose (DC Market Insights estimate).

### Which application leads the Data Center Energy Storage Market?

Rack-level battery backup units, with USD 2.64 billion or 56.0% of 2025 value. Facility-scale BESS is the fastest-growing segment at 26.67% a year.

### Which battery technology leads data center energy storage?

Lithium-ion, with 82.9% of 2025 value, against 13.2% for VRLA lead-acid batteries, according to DC Market Insights estimates.

### How much does data center energy storage cost?

About USD 380 per kW for rack BBU, USD 412 per kWh for centralized UPS batteries and USD 215 per kWh for campus BESS in 2025, according to DC Market Insights estimates.

### Which region leads the Data Center Energy Storage Market?

North America, with USD 2.13 billion or 45.2% of 2025 value. The Middle East and Africa grows fastest at 16.30% a year.

### Who are the leading companies in the Data Center Energy Storage Market?

Panasonic Energy is estimated to be the largest supplier, with more than 40% of 2025 value (DC Market Insights estimate). Tesla, Vertiv, Schneider Electric, Eaton, EnerSys, Samsung SDI, Fluence, Delta Electronics, Dynapack, Energy Vault, Cummins and Redwood Materials also compete.

### Which country spends the most on data center energy storage?

USD 1.91 billion in the United States, or 40.5% of 2025 spending, followed by China at USD 460.47 million. India grows fastest among large country markets at 19.60% a year (DC Market Insights estimate).

## How to cite

Data Center Market Research & Consulting | DC Market Insights, "Data Center Energy Storage Market", updated 2026-10-10, https://www.dcmarketinsights.com/report/data-center-energy-storage-market