New Industry Report Reveals Key Trends Shaping Data Center Energy Storage in the AI Era

AI Dynamic Power, Sustainability Priorities, and Rising Power Density Demands Reshape Data Center Energy Storage Strategies

PORTLAND, Ore.--(BUSINESS WIRE)--ZincFive®, the global leader in nickel-zinc (NiZn) battery-based solutions for immediate power applications, has released its third annual 2026 Data Center Energy Storage Industry Insights Report. Developed in collaboration with Endeavor Business Intelligence, the report features insights from industry professionals worldwide and examines key trends shaping the future of data center power, including shifting infrastructure priorities, emerging technology drivers, sustainability considerations, and the growing influence of AI workloads on energy storage strategies.

Key findings and trends from the 2026 report include:

• AI Power Demands Are Rising: 57% of respondents say AI workloads are driving higher power density requirements and smaller footprints, consistent with last year (54%), while 52% highlight the need to manage AI dynamic power and maintain power quality — up significantly from 37% in 2025.
• Cost and Safety Lead Energy Storage Decisions: 84% cite total cost of ownership as a top priority when selecting an energy storage solution, continuing a steady rise from 79% in 2025 and 65% in 2024. Safety remains another key factor, with 76% prioritizing battery chemistry safety.
• AI Dynamic Power Is Driving Technology Choice: Cost remains the most common driver of energy storage technology changes (58%), consistent with 2025 results, while AI dynamic power — introduced in the 2026 survey — ranks second at 49%.
• Sustainability Remains a Key Consideration: 70% say sustainability criteria are important to their power system purchasing decisions, and 46% report moderate or significant cost reductions from sustainability initiatives.
• Battery Selection for AI Power Challenges: When selecting battery chemistries to address AI dynamic power, respondents prioritize power density (38%), safety (37%), uptime (33%), and maintenance and serviceability (32%).

“As AI workloads continue to transform data center infrastructure, operators are facing new challenges around power density, power quality, and system reliability,” said Tod Higinbotham, CEO of ZincFive. “This year’s report highlights how the industry is adapting to these evolving demands while balancing cost, safety, and sustainability priorities. The findings underscore the growing need for energy storage technologies capable of delivering high power performance, operational resilience, and infrastructure efficiency in the era of AI-driven data centers.”

The Data Center Energy Storage Industry Insights Report was developed through a comprehensive data collection and analysis process conducted by Endeavor Business Intelligence on behalf of ZincFive. Data was collected between January and February 2026, with 150 qualified data center industry professionals from around the world participating in the survey.

Download 2026 report
Revisit 2025 report and 2024 report

About ZincFive, Inc.

ZincFive is the global 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.