Thanks to increasing power demands, sustainability concerns, and the need for reliable backup power, data center batteries are a hot topic. The rise of AI and the high-density, complex workloads it demands has made the question of where to find enough power, and how to manage effectively, a top priority.

The speed of innovation for battery technology has moved at similarly impressive rates. With demand for power only expected to rise in the coming years, innovating and adapting this kind of technology to help fuel the AI era is crucial.

At a time when data centers are facing increasing scrutiny over their environmental impact and carbon emissions, the push for alternative, more sustainable power solutions is also gaining urgency. If batteries are to play a key role in the data center power mix, unlocking the potential of different battery chemistries must continue to gain traction.

With this context in mind, in this episode of DCD>Talks, Eric Hill, director of global marketing and product management at CSB Energy Technology, shares his perspective on how battery technology has evolved over time, the opportunities and challenges it presents for powering the future of data centers, and how CSB is helping to drive innovation in the battery space.

The development of battery technology

Lithium-ion batteries have increasingly been favored in data centers for their high energy density, operational lifespans, and reduced maintenance requirements compared to traditional technologies such as lead-acid batteries. Today, they’re predominantly deployed in UPS systems, where their role is to provide backup power and ensure continuous uptime during outages or grid instability.

However, as Hill points out, lithium-ion batteries aren’t without their drawbacks. Concerns over their safety as well as the environmental impact of their production and disposal, have driven the industry to look more closely at alternatives.

“I remember when lithium-ion first came onto the scene commercially at scale,” says Hill. “People had a lot of questions and concerns, and now you've seen it rapidly evolve into this mainstream technology, and rightfully so. It definitely has its place and great technological benefits.”

With roots in lead-acid battery manufacturing, CSB has worked to enhance and modernize the baseline chemistry of many alternative battery materials. According to Hill, significant progress has been made across the industry in optimizing these different chemistries for more specialized use cases, including data centers, and he’s confident in the potential of these alternatives to play a major role in future energy strategies.

“The challenge is that they have to get to a point where they can scale and become economically viable for deployment – whether it's a small, medium, or large-scale data center,” he explains. “That’s going to be the key. And really, batteries in general are going to be such a core, fundamental piece of how data centers operate going forward.”

A significant challenge facing the industry is the gap between renewable energy generation and the extreme power demands being created by AI and high-performance computing. Utility grids and infrastructure in many regions are already struggling to keep up with the surge in demand. Battery technology has the potential to be a critical piece of the puzzle to help bridge this gap and provide the kind of flexible, scalable energy storage solutions data centers increasingly require.

The sustainability question

Almost every aspect of data center design and operations are being re-evaluated through the lens of sustainability, and battery systems are no exception. Hill believes that battery technology, when selected and deployed thoughtfully, can actually contribute significantly to a more sustainable energy profile.

“Lead-acid and nickel-based chemistries are highly recyclable,” says Hill. “They have almost 100 years of recycling infrastructure behind them, and established processes. While chemistries like lithium-ion are still relatively new in terms of recycling capabilities, they can, contrary to popular belief, be recycled.”

The sustainability conversation, he argues, shouldn’t be limited to what’s inside the battery. It’s also about how they’re used within the broader energy system. With data centers still heavily reliant on non-renewable energy for both power and cooling – and with demand surging, the associated rise in HVAC (heating, ventilation, and air conditioning) use is a growing sustainability challenge.

“There’s a lot of new, exciting technology coming around, in particular on the lead-acid side,” explains Hill. “What you can do in terms of batteries is operate them at a slightly elevated temperature. With some of the advancements we’ve made, we’re actually introducing new components inside the battery that improve service life even when operating in those elevated temperatures.”

That could mean that HVAC doesn’t need to run as frequently, or can allow for a higher ambient temperature inside the facility where the batteries are housed – leading to reduced HVAC usage, lower cooling requirements, and ultimately a reduced carbon footprint for the data center.

Installation and operations: The people problem

While sustainability is a widely-discussed topic, the logistics of installation and operation can sometimes be overlooked in broader industry conversations. Hill is keen to acknowledge the professionals working behind the scenes to make battery-powered infrastructure a reality.

“At CSB, we have a really diverse network of installation companies, distributors, and the people actually doing this work,” he says. “And one of the common pain points they’re seeing right now is the increasing scalability of power. Power racks and server demands are going up and up, and the technicians and engineers have to constantly keep pace with new technologies, new battery types, and new best practices. That requires regular retraining and, in some cases, obtaining new certifications.”

The dramatic shift in power profiles within the modern data center is creating a widening skills gap in terms of available, qualified labor. With extended delivery timelines and increasing pressure on project teams, this is becoming a significant bottleneck for both innovation and scalability.

“You've got more complexity, more chemistry types, and more demand for faster installs and higher uptime. If we don’t start addressing the people problem – training, education, retention – it’s going to slow down the very innovation we’re trying to accelerate,” says Hill.

We’ve got chemistry

As the conversation draws to a close, Hill emphasizes a critical point: there is no one-size-fits-all solution. With a wide variety of battery chemistries out there, understanding the specific needs of a particular data center or application is key to selecting the right one.

“It’s really important to understand what you want your batteries to do,” he says. “Because far too often, customers come to us asking for a certain chemistry just because it’s the latest trend. They’ve heard it’s the best, or it’s what a competitor is using, and they assume it will solve all their problems. And it might! But you have to take a step back and really evaluate your actual needs. In some cases, an older or less-hyped chemistry might be more cost-effective or better suited to your goals.”

As newer chemistries continue to emerge and rise in viability, the industry faces the dual challenge of keeping up with a rapidly accelerating technology curve while also ensuring those innovations can be implemented at scale. This innovation gap requires focused effort to bridge.

According to Hill, manufacturers like CSB have a clear role to play: champion the most promising alternative chemistries, invest in their development, and bring them to market in a way that’s scalable, affordable, and reliable.

“Our job is to foster those chemistries that have real promise and help push them over the finish line. That means supporting advancements in manufacturing, helping to bring down costs, and working with partners to ensure these technologies are actually deployable at the scale data centers need.”

With battery innovation moving at a remarkable pace in just the past few years, the future looks bright for sustainable, scalable power solutions that can support the energy-intensive demands of modern data centers. But as Hill reiterates, realizing that future will require sustained innovation, strategic investment, and a practical approach to deployment.

The opportunity is there, and if industry players can work together to close the gap between lab-based innovation and large-scale implementation, battery technology could very well become a cornerstone of the data center of tomorrow.

To hear more about how CSB is fueling the development of battery technology and delivering the best solutions for the right operational demands, watch the full DCD>Talks episode with Eric Hill, here.