
These battery systems are based on lithium-ion technology and are widely used in modern data centers for power security and energy management due to their high energy density, long lifespan, and fast charging capability.. These battery systems are based on lithium-ion technology and are widely used in modern data centers for power security and energy management due to their high energy density, long lifespan, and fast charging capability.. The Data Center Li-ion Batteries mentioned in this report refer to the AC lithium-ion battery that is paired with UPS, which are specifically designed to provide power storage and backup power for data centers and critical power supply scenarios. These battery systems are based on lithium-ion. . The global data center energy storage market size was estimated at USD 1.58 billion in 2024 and is projected to reach USD 2.67 billion by 2030, growing at a CAGR of 9.5% from 2025 to 2030, driven by the exponential increase in data generation and digital transformation across industries. The North. [pdf]
Energy storage systems are designed to save energy for later use in order to assist load balancing, peak shaving and integration of renewable energy sources. Based on data centers, the data center battery market is segmented into enterprise data centers, colocation data centers, hyperscale data centers, and edge data centers.
Data centers are increasingly adopting renewable energy sources such as wind and sunlight to power their operations. Sophisticated battery storage systems are needed for this integration in order to regulate the intermittent behavior of renewable energy sources and ensure a constant and uninterrupted power supply.
The market for data center battery was valued at USD 3.4 billion in 2024 and is expected to reach around USD 5.9 billion by 2034, growing at 5.5% CAGR through 2034. Data center battery market was valued at USD 3.4 billion in 2024 and is estimated to grow at a CAGR of over 5.5% from 2025 to 2034 driven by growing advancements in battery technology.
Based on application, the data center battery market is segmented into uninterruptible power supply, backup power systems, energy storage systems, and peak shaving & load balancing. The uninterruptible power supply segment dominated the market with market share of 52% in 2024.
Data centers invest in advanced battery systems due to policies which promote the use of energy-efficient technologies and renewable energy sources. Businesses and governments are putting recycling systems into place to securely recycle spent batteries.
This creates the rising energy demands of data centers that are met by China's dominance in battery technology and manufacture, especially in lithium-ion batteries. For instance, according to Reuters, China has invested almost USD 6.12 billion in new data centers in 2022 and 2023.

The company has focused on strengthening the interconnection of power grids, built 29 ultra-high voltage transmission projects, with a cross-regional and cross-provincial transmission capacity of more than 240 million kilowatts, and grid-connected new energy installed capacity of 550 million kilowatts; built the world's largest "new energy cloud" platform, with a total of 2.67 million new energy stations connected; built the world's largest smart car networking platform, with more than 1.5 million charging piles connected, serving the green travel of 6.4 million electric vehicles across the country. [pdf]
State Grid Corporation of China was founded on 29 December 2002 with investments, construction and operation of power grids as its core business. It is committed to meeting energy demands with clean and green alternatives, through new electrifications and energy connectivity solutions.
Global Times The State Grid Corporation of China recently completed the grid connection of GCL-Xin, Banqiao, and Datang energy storage power stations in Nanjing, located in East China's Jiangsu Province.
The State Grid Nanjing Power Supply Company has provided "one to one" guidance and "housekeeper" service for enterprises, conducting numerous field surveys to understand the construction progress.
Li added that China's dominance in energy storage technology, particularly in battery cell production, places it in a leading position to shape global storage standards. At the end of the first half, power storage capacity in China surpassed 100 GW, reaching 103.3 GW, a 47 percent year-on-year increase.
At the end of the first half, power storage capacity in China surpassed 100 GW, reaching 103.3 GW, a 47 percent year-on-year increase. New energy storage systems now account for nearly 50 percent of the total, with lithium battery storage maintaining a dominant position in this sector, said Li.
The country's storage sector is diversifying beyond lithium-dominant technologies, with recent deployments including projects utilizing flywheel and supercapacitor technologies, a compressed-air facility with a capacity of 300 megawatts, and advanced lithium-ion and lead-carbon hybrid setups, it said.

The government tries to encourage the firms to invest immediately by providing subsidies to this irreversible investment. The subsidy policy, however, can be activated or terminated at an uncertain time and therefore, the firms face additional policy uncertainty when making the decision.. The government tries to encourage the firms to invest immediately by providing subsidies to this irreversible investment. The subsidy policy, however, can be activated or terminated at an uncertain time and therefore, the firms face additional policy uncertainty when making the decision.. In order to systematically assess the economic viability of photovoltaic energy storage integration projects after considering energy storage subsidies, this paper reviews relevant policies in the Chinese photovoltaic energy storage market. It analyzes the cost and revenue composition of. . ina emerging as energy storage powerhouse. China''''s installed power generation capacity surged 14.5 percent year-on-year to 2.99 billion kW by the end of March, with that of solar power soaring 55 percent year-on-year to 660 million kW and wind power rising 21.5 percent year-on-year to idies to. [pdf]
In the context of China’s new power system, various regions have implemented policies mandating the integration of new energy sources with energy storage, while also introducing subsidies to alleviate project cost pressures. Currently, there is a lack of subsidy analysis for photovoltaic energy storage integration projects.
China's partial photovoltaic project allocation and storage related policies. NPV trend of 10% energy storage under different initial investment subsidy ratio. Figure 6. NPV trend of 10% energy storage under different initial investment subsidy ratio. Typical PV-ES integrated project put into operation in China. Variables and explanations.
China’s partial photovoltaic project allocation and storage related policies. 2.2.2. Policies Related to Energy Storage Subsidies energy storage. Regions across the country have actively implemented subsidies for energy storage to facilitate its development. As of 2022, 28 regions including Leqing in Zhejiang storage.
The results indicate that, while the current energy storage subsidy policies positively stimulate photovoltaic energy storage integration projects, they exhibit a limited capacity to cover energy storage investment costs, thereby failing to incentivize capital market participation in the construction of such projects.
Policies Related to Energy Storage Subsidies energy storage. Regions across the country have actively implemented subsidies for energy storage to facilitate its development. As of 2022, 28 regions including Leqing in Zhejiang storage. Currently, the main beneficiaries of ener gy storage subsidies are standalone energy
Global and China’s cumulative installed capacity of photovoltaic energy storage. T able 1. Typical PV-ES integrated project put into operation in China. and energy storage, the installed capacity proportion of PV energy storage projects is 79.4%. capacity of all PV energy storage projects. These projects are mainly distributed in Qinghai,
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