ZincFive, a global leader in nickel-zinc (NiZn) battery-based solutions for immediate power applications, has released its second annual 2025 Data Center Energy Storage Industry Insights Report in collaboration with Data Center Frontier.

The report offers a comprehensive look at the evolving energy storage landscape, featuring insights from industry professionals worldwide. It examines key trends shaping the future of data center power, including shifting priorities, emerging challenges, evolving perceptions, and the increasing impact of AI on energy storage strategies.

Key findings and trends from the 2025 report

• AI’s biggest impact: When asked about AI’s effect on power and energy storage, 55 percent of respondents cited increased energy efficiency requirements, while 54 percent emphasized the growing need for higher power density and smaller footprints.
• Drivers for change: Cost remains the primary driver for changes in energy storage technology (58 percent), followed by safety concerns (46 percent), cooling requirements (42 percent), product availability (40 percent), and reliability issues (39 percent).
• Sustainability: In 2025, sustainability continues to gain importance, with 87 percent of respondents considering it a priority, up from 81 percent in 2024. Additionally, nearly three-quarters (72 percent) report significant or moderate cost reductions from their organization's sustainability efforts, an increase from 63 percent last year.
• Backup runtimes: In 2025, 37 percent of respondents expect their UPS battery backup run times to decrease in the future, a notable rise from 26 percent in 2024. Meanwhile, 31 percent anticipate no change, down from 38 percent last year.
• AI’s impact on power design: Nearly nine in ten respondents (86 percent) anticipate a shift towards more customized power solutions to accommodate AI demands, while only four percent expect no changes.
• Modular power solutions: Two-thirds (68 percent) of respondents use modular power solutions and plan to continue, 22 percent deploy them at all locations, while 14 percent have no plans for adoption.

“As data centers evolve to meet rising AI-driven workloads, sustainability goals and increasing power demands, staying ahead of industry shifts has never been more critical,” said Tim Hysell, CEO and co-founder of ZincFive. “This report captures the pulse of the industry, revealing not just the adoption of new technologies, but the growing demand for smarter, more resilient and sustainable energy storage solutions. The data underscores an ongoing shift – one that prioritizes efficiency, reliability, and innovation to power the future of data centers.”

The Data Center Energy Storage Industry Insights Report was created via a thorough data collection and analysis process conducted by Data Center Frontier and Endeavor Business Intelligence, on behalf of ZincFive. Data was collected between January 23rd and February 6th, 2025, with 132 qualified industry professionals from around the world participating in the survey. Download the 2025 report here, and revisit the 2024 report here.