Sustainability, AI-Driven Workloads, and Rising Power Demands Top Industry Concerns as Data Center Strategies Evolve to Meet Emerging Needs

ZincFive^®, the 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. This 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 include:

• AI’s Biggest Impact: When asked about AI’s effect on power and energy storage, 55% of respondents cited increased energy efficiency requirements, while 54% 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%), followed by safety concerns (46%), cooling requirements (42%), product availability (40%), and reliability issues (39%).
• Sustainability: In 2025, sustainability continues to gain importance, with 87% of respondents considering it a priority, up from 81% in 2024. Additionally, nearly three-quarters (72%) report significant or moderate cost reductions from their organization's sustainability efforts, an increase from 63% last year.
• Backup Runtimes: In 2025, 37% of respondents expect their UPS battery backup run times to decrease in the future, a notable rise from 26% in 2024. Meanwhile, 31% anticipate no change, down from 38% last year.
• AI’s Impact on Power Design: Nearly nine in ten respondents (86%) anticipate a shift toward more customized power solutions to accommodate AI demands, while only 4% expect no changes.
• Modular Power Solutions: Two-thirds (68%) of respondents use modular power solutions and plan to continue, 22% deploy them at all locations, while 14% 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 through 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 23 and February 6, 2025, with 132 qualified industry professionals from around the world participating in the survey.

Download 2025 report

Revisit 2024 report

About ZincFive, Inc.

ZincFive is the world leader in innovation and delivery of nickel-zinc batteries and immediate power solutions. Supported by an impressive portfolio of international patents, ZincFive technology harnesses The Power of Good Chemistry® to propel the world forward. ZincFive technology leverages the safety and sustainability of nickel-zinc chemistry to provide unparalleled high power density and performance for mission critical applications. ZincFive is a privately held company based in Tualatin, Oregon. For more information, visit www.zincfive.com.

ZincFive and The Power of Good Chemistry are registered trademarks of ZincFive, Inc. and the ZincFive logo is a trademark of ZincFive, Inc.

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About Data Center Frontier

Data Center Frontier charts the future of data centers and cloud computing. We write about what’s next for the Internet, and the innovations that will take us there. The data center is our prism. We tell the story of the digital economy through the facilities that power the cloud and the people who build them. In writing about data centers and thought leaders, we explain the importance of how and where these facilities are built, how they are powered, and their impact on the Internet and the communities around them. Data Center Frontier is a publication of Endeavor Business Media. For more information, visit www.datacenterfrontier.com.

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ZincFive's 2025 Data Center Energy Storage Industry Insights Report is here. Discover how AI, sustainability, and power demands are driving a shift toward smarter, scalable energy strategies.