Data Center Demand Boosted Battery Production Through 2025
Global lithium-ion battery output reached 2.3 terawatt-hours in 2025 to support surging digital power needs.
Updated on Sept. 30, 2026 in Data Centers
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Rising electricity demand from data centers fueled significant growth in global lithium-ion battery production through 2025. Energy storage systems became the second-largest driver of the battery industry as facilities prioritized uninterrupted power for cloud computing.
Why it matters
Existing power grids struggle to meet the massive electricity requirements of data centers. Battery energy storage provides the critical reliability necessary to maintain operations for artificial intelligence and cloud-based services.
Global lithium-ion battery production grew from 1.05 terawatt-hours in 2023 to 2.3 terawatt-hours in 2025. Energy storage system batteries now represent 20% of total production capacity, with lithium iron phosphate variants accounting for 65% of output.
The players
China
China is the primary global hub for battery manufacturing, accounting for 86% of total worldwide production.
United States
The United States is the largest regional market for data infrastructure, housing 40% of all data centers globally.
The details
Data centers require massive energy storage systems to maintain stable power when grid connection wait times are lengthy. As of September 2026, there were 12,259 data centers worldwide, with the United States hosting 40% of that total capacity.
Timeline
Global lithium-ion battery production reached 1.05 terawatt-hours in 2023.
Global lithium-ion battery production reached 1.6 terawatt-hours in 2024.
Global lithium-ion battery production reached 2.3 terawatt-hours in 2025.
The number of data centers reached 12,259 by the end of September 2026.
The Tech Race
This growth aligns with the rise of energy storage systems as a primary driver of the global battery industry. The expansion marks a shift where digital infrastructure increasingly dictates the trajectory of global chemical energy storage manufacturing.
The expansion of battery storage capacity aims to stabilize power for the digital services and AI platforms consumers rely on daily. As data centers secure more dedicated energy, users may see reduced service outages despite the increasing technical demands of cloud applications.
The takeaway
The massive scale of global data operations has fundamentally altered the battery manufacturing market. Reliability for digital services will continue to depend on these high-capacity energy storage solutions.
Further reading
For more on the infrastructure powering the cloud, see our coverage of Data Centers.
Source note: This article includes information reported by Azertag.
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