Today's data centers are bigger, denser, more interconnected, and as a result, more complex than ever before. As AI accelerates infrastructure growth, securing enough reliable power, quickly, has risen above almost every other industry-wide challenge.

The unprecedented demand created by AI-ready facilities is forcing operators to rethink traditional power strategies. Rather than relying solely on national grids, data centers are increasingly investing in diversified energy solutions.

As a result, battery technology is transforming from a backup system into a critical component of modern power architecture.

For CSB's Eric Hill, the industry's approach to batteries has fundamentally changed. Rather than simply supplying products, the company works with operators to determine how batteries can solve specific operational challenges:

"We're helping data centers solve problems around the batteries themselves, and using the batteries to solve problems. It's not just about selling a battery that can do everything reasonably well. It comes down to understanding why customers need batteries, what they want them to do, and how we solve those problems."

In a recent DCD>Talks episode, Hill explores how batteries are becoming strategic assets and what operators should consider as they build more resilient, AI-ready power infrastructures.

No longer on standby

Typically, batteries have been viewed as insurance policies, providing short-term backup power during outages. But thanks to significant developments in the technology and the growing trend towards diversified power solutions, this perception is rapidly changing.

"Batteries have been around for a long time," says Hill. "But we're seeing a real mindset shift where the technology is becoming fully integrated into the power framework of data center deployments, from small facilities to hyperscale campuses."

Depending on the site's requirements and the battery chemistry selected, they can support demand response programs, emergency backup, microgrids, battery storage systems (BSS), and broader energy management strategies.

"It's refreshing to see that myth being broken around batteries," adds Hill. "They're no longer just there for backup – they're becoming tools to solve operational problems."

The benefits extend beyond resilience. In some markets, batteries can also become revenue-generating assets.

Where utilities and power purchase agreements allow, operators with excess stored capacity may be able to participate in ancillary service markets or provide energy back to the grid during periods of high demand. While these opportunities vary significantly by region, they demonstrate how battery systems can create additional value beyond supporting critical infrastructure.

"It depends on the site and what you're using the battery for," explains Hill. "But it can definitely be an option if you're having the right conversations with your utility."

AI’s impact

Unlike traditional enterprise computing, AI training workloads are highly dynamic, creating frequent power fluctuations and what Hill describes as "micro-cycles" – repeated shallow discharge and recharge events that place different stresses on battery systems.

"Certain chemistries are inherently better at handling those high-power loads alongside micro-cycling," he explains. "Depending on the demand response curve, the load profile and workload requirements, the optimal battery technology can vary significantly."

The challenge is comparable to integrating renewable energy sources, where batteries help smooth voltage fluctuations and maintain stable operations. AI infrastructure creates similar conditions at much larger scales.

"As we move to higher voltages, batteries will become even more integrated into that ecosystem," adds Hill.

Higher-voltage systems inevitably introduce additional safety requirements, certification standards, and regulatory considerations. However, Hill believes this only reinforces the need for batteries to be treated as active components of the wider power ecosystem rather than passive backup solutions:

"More of the conversations we have today are focused on integrating the battery bank as part of the overall power solution. Instead of sitting there waiting to be used, it becomes an asset that supports whatever energy management requirement the facility has."

Managing supply chain challenges

As battery adoption accelerates, operators must also navigate increasingly complex supply chains. Battery manufacturing depends on a range of raw materials and specialist components, many of which remain subject to price volatility and geopolitical uncertainty.

"It's something that should definitely be closely monitored," says Hill. He notes that procurement teams are becoming increasingly focused on commodity markets, recognizing that batteries rely not only on critical minerals but also on multiple components sourced across global supply chains:

"Costs are increasing across the board, and more people are taking notice of that."

Managing these risks requires long-term planning. Hill recommends diversifying suppliers, securing strong vendor agreements, and building inventory for non-perishable components wherever possible.

With demand continuing to rise and manufacturing backlogs persisting across much of the industry, proactive supply chain management is becoming an essential part of infrastructure planning.

The right fit

"AI is dominating the conversation," says Hill. "That means higher power density, longer-lasting batteries and products that can support micro-cycling for AI learning models."

At the same time, many enterprise and legacy data centers remain focused on reliable emergency backup while gradually incorporating battery storage systems, onsite generation, and microgrid capabilities into their operations.

From a technology perspective, Hill stresses there is no perfect battery chemistry that can do it all: "It really comes down to what you want your battery to do."

Every chemistry involves trade-offs between power density, cycle life, safety, cost, and performance. While lithium-ion continues to dominate many deployments, lead-acid technologies continue to improve, and several emerging chemistries are showing promise as manufacturers respond to growing market demand.

Cycle life is becoming particularly important as more facilities operate partially or fully independent of the grid.

"If you're off grid or disconnect from the grid, you need a battery that can handle repeated discharge and full recharge cycles," explains Hill. "Some technologies do that much better than others."

Finding the right balance between high power capability and long cycle life will become increasingly important as operators build more flexible power infrastructures.

Innovation, however, is nothing without the right safety principles in place. "Everything we do at CSB – and really across the battery manufacturing industry – considers safety to be paramount," says Hill.

Different chemistries come with their own unique operational characteristics and safety considerations, making early engagement with local authorities and emergency response teams essential – especially considering these regulations can vary considerably between jurisdictions.

Dispelling the biggest myth

Despite rapid advances in battery technology, Hill believes one misconception continues to persist: the idea that just one battery chemistry will suit every facility and solve every problem.

"A one-size-fits-all approach is probably the biggest myth," he says.

While some technologies excel in specific applications, every battery involves compromises between performance, lifespan, safety, and cost. The right solution ultimately depends on the site's operational priorities, power profile, and long-term energy strategy.

As AI continues to reshape data center infrastructure, batteries are no longer simply providing backup during outages – they’re becoming intelligent, integrated assets that support resilience, optimize energy use, enable new revenue opportunities, and help operators navigate an increasingly complex power landscape.

For Hill, success starts with asking the right question: "It's not about finding the battery that does everything," he concludes. "It's about finding the battery that's right for what you need it to do."

To hear more about the many layers of battery resilience, watch the full DCD>Talks episode with Eric Hill, here.