Latest Research on Battery Type in the US Data Center BESS Market by MarketsandMarkets™
The report “US Data Center BESS Market by Battery Type (Li-ion Battery, Advanced Lead Acid Battery, Flow Battery, Sodium-ion Battery), Data Center Type (Hyperscale, Colocation, Enterprise & Edge), Deployment Architecture (BTM, FTM) – Forecast to 2030” The BESS market for US data centers is projected to grow from USD 274.5 million in 2025 to USD 527.8 million in 2030, registering a CAGR of 14.0% during the forecast period.
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Browse 25 market data Tables and 20 Figures spread through 200 Pages and in-depth TOC on “US Data Center BESS Market by Battery Type (Li-ion Battery, Advanced Lead Acid Battery, Flow Battery, Sodium-ion Battery), Data Center Type (Hyperscale, Colocation, Enterprise & Edge), Deployment Architecture (BTM, FTM) – Forecast to 2030”
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Market growth is driven by the increasing demand for uninterrupted power supply, energy efficiency, and resilient backup power infrastructure across hyperscale and colocation data centers. Data center operators are prioritizing battery energy storage systems to improve power reliability, support renewable energy integration, and optimize energy consumption in high-density computing environments. Vendors are advancing BESS technologies through improved lithium-ion battery systems, modular storage architectures, and intelligent energy management platforms to deliver fast response capability and operational continuity. Expansion of AI workloads, cloud infrastructure, and large-scale digital facilities is reinforcing the role of battery energy storage systems in enabling scalable and efficient data center power management across the US.
The Flow Battery Segment is expected to grow with the highest CAGR during the forecast period.
Flow batteries are expected to register the highest CAGR in the US Data Center BESS Industry during the forecast period, driven by their long-duration energy storage capability, enhanced operational safety, and ability to support continuous power delivery in mission-critical environments. These systems offer stable cycling performance, improved thermal management, and flexible scalability, making them suitable for large-scale hyperscale and colocation data center facilities. Increasing focus on renewable energy integration, grid resilience, and reducing dependence on conventional backup power systems is accelerating the adoption of flow battery technologies. Vendors are also advancing electrolyte efficiency, system durability, and energy management capabilities to improve operational reliability and lifecycle performance. Growing investments in sustainable and long-duration energy storage infrastructure are expected to further strengthen demand for flow battery systems across US data center operations.
Colocation Data Centers to hold a significant share during the forecast period.
Colocation data centers are expected to account for a significant share of the BESS market in US data centers during the forecast period, driven by rising demand for outsourced digital infrastructure, high-availability power systems, and scalable energy management solutions. These facilities require reliable backup power and energy storage systems to ensure uninterrupted operations for multiple enterprise customers and cloud service providers. Increasing deployment of battery energy storage systems for peak load management, energy optimization, and renewable energy integration is strengthening adoption across colocation environments. Growing investments in large-scale colocation campuses, the expansion of AI-driven workloads, and an increasing focus on operational efficiency and sustainability are further driving demand for advanced BESS solutions across the US colocation data center ecosystem.
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The Western US region is expected to grow with a significant CAGR during the forecast period.
The Western US is expected to see strong growth momentum in the BESS market for US data centers during the forecast period, driven by the continued expansion of hyperscale digital infrastructure and rising electricity demand from AI-driven computing workloads. States such as California, Arizona, Nevada, and Oregon are attracting major investments in large-scale data center campuses supported by strong renewable energy availability and favorable energy transition initiatives. Data center operators across the region are increasingly deploying battery energy storage systems to improve power reliability, manage peak demand, and support sustainable energy operations. Growing focus on reducing dependence on diesel-based backup systems and strengthening energy resilience is further accelerating BESS adoption. Expansion of renewable power generation and grid modernization programs continues to support long-term market growth across the Western US.
Major players operating in the US Data Center BESS Companies include Tesla (US), Sungrow (China), Fluence (US), FlexGen Power Systems, LLC. (US), and LG Energy Solution (South Korea).
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