AI is fundamentally reshaping the architecture of modern data centers. The rapid deployment of high-performance computing (HPC) and GPU-intensive infrastructure is driving unprecedented increases in power density, introducing new challenges for electrical systems that were not anticipated in earlier generations of data center design.

Unlike traditional enterprise facilities, AI data centers operate with significantly higher rack densities, more dynamic load profiles, and more stringent requirements for power continuity. As computing workloads become increasingly demanding, UPS battery systems must provide not only sufficient backup duration but also rapid response capability, stable voltage output, high-rate discharge performance, and enhanced safety.

According to JLL’s 2026 Global Data Center Outlook, global data center capacity is projected to expand by nearly 100GW between 2025 and 2030, effectively doubling within five years. At the same time, average rack power density is expected to increase from the traditional five to 10kW range to 30 to 80kW, with some AI deployments already exceeding 100kW per rack.

This transformation is compelling the industry to revisit a fundamental question: can today’s UPS battery technologies meet the demands of tomorrow’s data centers?

Lead-acid batteries: A reliable legacy technology facing new limitations

Valve-regulated lead-acid (VRLA) batteries have long been the dominant choice for UPS applications due to their technological maturity, well-established supply chain, and relatively low upfront cost. However, as AI-driven computing pushes data centers toward higher power densities, the limitations of lead-acid batteries in terms of space efficiency, power performance, and sustainability are becoming increasingly evident.

Lead-acid batteries typically offer an energy density of only 30 to 50Wh/kg. As a result, meeting modern UPS backup requirements requires large battery banks, which consume valuable data center floor space and increase structural loading demands. More importantly, UPS systems in data centers are primarily designed to provide short-duration, high-power output rather than long-duration energy storage.

Under high-rate discharge conditions, the limited rate capability of lead-acid batteries results in significant capacity loss. To maintain the required five to ten minute backup window, operators often need to install additional battery capacity, further increasing system footprint, weight, and cost.

In addition, lead-acid batteries typically have a service life of only three to five years, necessitating multiple replacement cycles over the lifetime of a data center. Their dependence on lead-based materials and sulfuric acid electrolytes also raises environmental and sustainability concerns, particularly as the industry seeks to reduce its environmental footprint and improve resource efficiency.

Lithium-ion batteries: Advancing performance while increasing safety complexity

Lithium-ion batteries have overcome many of the energy density and footprint limitations associated with lead-acid batteries and have consequently gained significant adoption in UPS applications. However, in data centers where safety and uninterrupted operation are paramount, lithium-ion batteries continue to present inherent safety challenges.

Because they employ flammable organic electrolytes, lithium-ion cells can undergo sustained exothermic reactions under extreme conditions such as overcharging, internal short circuits, or thermal runaway, potentially resulting in fire or explosion.

Recent data center fire incidents in Singapore, India, and South Korea have highlighted growing infrastructure and battery safety risks. In September 2024, a lithium-ion battery fire at Digital Realty's Singapore facility disrupted Alibaba Cloud and other major services. In June 2026, a fire at STT GDC's Delhi data center caused extensive damage, service outages, and significant data loss concerns.

In South Korea, a 2025 lithium battery fire at the National Information Resources Service (NIRS) data center disrupted hundreds of government digital services, exposing vulnerabilities in backup and resilience planning. In response, some jurisdictions have introduced more stringent requirements for the indoor deployment of lithium-ion battery systems.

As a result, lithium-based UPS installations often require additional fire suppression, ventilation, monitoring, and thermal management systems, increasing both project complexity and total deployment cost.

The industry is therefore seeking next-generation battery technologies that can provide an improved balance of power performance, operational safety, system efficiency, and sustainability.

Nickel-zinc: A battery technology designed for the AI data center era

Nickel-zinc (NiZn) battery technology is emerging as a promising option for next-generation data center UPS applications. By combining the inherent safety of aqueous battery chemistry with high-rate discharge capability and improved space efficiency, NiZn offers a compelling backup power solution for AI-era data centers.

One of the key advantages of NiZn technology is its intrinsic safety. Unlike lithium-ion batteries, which rely on flammable organic electrolytes, NiZn batteries use an aqueous electrolyte system. Under abnormal conditions such as overcharging, short circuits, or mechanical damage, NiZn batteries typically experience electrolyte dry-out and increased internal resistance rather than sustained combustion or thermal runaway.

NiZn batteries also deliver excellent high-rate performance, making them well suited to the backup power requirements of AI data centers. Owing to their high ionic conductivity and rapid electrochemical kinetics, NiZn systems can support discharge rates of up to 10C while maintaining stable performance under high-power operating conditions. This capability is particularly relevant for data center UPS applications, where backup durations are typically limited to five to ten minutes.

In such scenarios, the primary requirement is not maximum energy storage, but the ability to deliver high power reliably within a compact footprint. For the same five to ten minute UPS backup requirement, a nickel-zinc system can achieve approximately one-third to one-half the volume and weight of a conventional lead-acid solution. This enables data center operators to free up valuable floor space for IT equipment, reduce structural loading requirements, and simplify system deployment.

Beyond performance and safety, NiZn technology is also well aligned with the sustainability objectives of future green data centers. Nickel and zinc are highly recyclable materials, while NiZn chemistry eliminates the use of lead and cadmium and employs an aqueous manufacturing process with a lower environmental impact.

Through continuous innovation in materials engineering, cell design, and system integration, Gerchamp is accelerating the commercialization of NiZn battery technology for data center UPS applications, helping to deliver safer, more compact, and more efficient backup power solutions for the next generation of AI infrastructure.

Redefining the standard for data center UPS batteries

AI is transforming data centers from traditional power-consuming facilities into highly dynamic computing infrastructures. This shift is not only increasing power demand at the server level but also redefining the performance requirements for UPS battery systems.

In the AI era, the competitiveness of UPS batteries will no longer be determined solely by rated capacity. Instead, it will depend on their ability to deliver stable power under high-rate transient loads, provide inherent safety for mission-critical operations, and achieve greater power density within increasingly constrained space.

As a result, UPS batteries are evolving from simple backup energy assets into high-reliability power response systems. For data center operators, battery selection should extend beyond upfront cost considerations to a comprehensive lifecycle assessment that includes space utilization, safety, operational complexity, maintenance requirements, and long-term reliability.

The next generation of data center batteries will not be defined by energy density alone. Rather, they will be judged by their ability to combine reliable power delivery, uncompromising safety, operational flexibility, and sustainability in an increasingly complex and power-intensive computing environment.

As AI continues to accelerate the growth of digital infrastructure, nickel-zinc battery technologies that successfully balance these requirements will play a critical role in shaping the future of data center power systems.