The increasing data centers and AI demand is catalyzing a significant transformation in energy storage strategies, altering the way these facilities handle power consumption, efficiency, and sustainability.
As advancements in artificial intelligence progress, the necessity for more intelligent and resilient power solutions becomes ever more critical.
A recent report by ZincFive, in partnership with Data Center Frontier, underscores these emerging trends, highlighting the growing focus on energy efficiency, modular power solutions, and sustainable practices.
The Influence of AI on Power and Energy Storage
The surge in AI-driven workloads has exerted considerable pressure on data centers to enhance energy efficiency.
The report indicates that 55% of participants recognized the increased demand for energy efficiency as a significant consequence of AI, while 54% pointed out the rising need for higher power density and reduced physical space.
This evolution calls for a reevaluation of conventional energy storage methods, encouraging data centers to embrace more sophisticated and flexible power technologies.
Moreover, nearly 86% of industry experts predict a transition towards tailored power solutions to meet the escalating demands of AI.
As data processing capabilities grow, traditional energy infrastructures find it challenging to keep pace, resulting in a heightened emphasis on innovation in backup power systems and comprehensive energy storage management.
Key Factors Driving Change in Energy Storage Technology
A key takeaway from the report is the shifting priorities that influence advancements in energy storage technology.
While cost remains the foremost concern, with 58% of respondents highlighting it as their primary issue, other factors such as safety (46%), cooling needs (42%), product availability (40%), and reliability (39%) also significantly impact how data centers allocate resources for energy storage solutions.
This change in emphasis underscores the necessity of achieving a balance between affordability, efficiency, and safety.
As the demands of artificial intelligence AI workloads increase in terms of power output and thermal management, industry leaders are reevaluating their energy strategies to secure long-term operational stability.
Sustainability: An Increasing Focus
The focus on sustainability is intensifying, with 87% of survey participants identifying it as a priority for 2025, up from 81% in 2024.
Remarkably, nearly 72% of organizations report experiencing significant or moderate cost savings as a result of sustainability initiatives, indicating a growing recognition of the financial advantages linked to green energy solutions.
Innovative energy storage options, such as nickel-zinc (NiZn) battery systems, are emerging as effective alternatives to conventional lithium-ion and lead-acid batteries.
These technologies not only lessen environmental impact but also enhance reliability and performance, making them an appealing option for data centers aiming to improve their energy strategies.
The Evolution of Backup Runtime Expectations
A significant element of the transformation in energy storage is the diminishing dependence on prolonged UPS battery backup runtimes.
The report indicates that 37% of respondents predict a reduction in their backup runtimes in the upcoming years, a notable increase from 26% in 2024.
Conversely, only 31% expect no change, a decrease from 38% the previous year.
This trend implies that data centers are increasingly focusing on real-time power solutions that reduce downtime while curtailing unnecessary energy consumption.
By adopting more efficient energy storage and distribution models, organizations can sustain uptime while decreasing operational expenses.
Industry Insights and Future Outlook for data centers and AI demand
According to Tim Hysell, CEO and co-founder of ZincFive, the ongoing shift in data center power strategies underscores the need for smarter, more resilient, and sustainable energy solutions.

He emphasizes that the latest industry insights reveal not just the adoption of new technologies but also the growing focus on efficiency, reliability, and innovation.
As the data center industry continues to evolve, companies must stay ahead by adopting emerging energy storage solutions that align with AI-driven requirements.
By investing in modular, cost-effective, and sustainable power technologies, organizations can ensure long-term success in an increasingly AI-centric world.
Expert Editorial Comment
In summary, data centers and AI demand are reshaping the energy storage landscape, pushing organizations toward more efficient, sustainable, and adaptable solutions.
The key trends identified in ZincFive’s 2025 report highlight the need for customized power infrastructures, reduced backup runtimes, and a stronger commitment to sustainability.
Moving forward, industry leaders must prioritize innovation and strategic investments to keep pace with AI’s growing influence on power consumption.
