IndexBox Forecasts 12.5% Annual Growth for Data-Center Battery Market Through 2035

IndexBox’s 25 September 2026 market outlook forecasts sustained expansion in the global data-center battery market between 2026 and 2035. Under its base-case scenario, the market grows at an average annual rate of 12.5%, reaching an index of 325 in 2035, with 2025 set at 100.

The outlook identifies hyperscale and colocation facilities as the principal demand drivers. It also anticipates a shift away from VRLA batteries toward lithium-ion systems, particularly LFP, citing cost, safety and operating characteristics.

The report places BESS more centrally within data-center energy architecture. Rather than serving solely as short-duration backup, battery systems could increasingly be used for peak-load management, reducing capacity charges and interaction with the electricity system. Long-duration energy-storage systems are identified as a growing segment for demand management, integration of on-site generation and provision of grid services.

For operators and designers, this could broaden procurement and infrastructure decisions beyond conventional UPS battery selection. Storage may increasingly be evaluated on total cost of ownership, its ability to support energy flexibility, safety certification, and integration with power-conversion equipment and energy-management software.

IndexBox expects Asia-Pacific to remain the largest market, while North America and Europe offer strong growth potential. The forecast also identifies constraints that could slow deployment: shortages of qualified cells, safety requirements and high upfront costs. Suppliers of LFP systems, BESS integration, power-conversion equipment and energy-management platforms could see additional demand if adoption develops as projected.