Global Data Center Lithium-Ion Battery Market Valued at $5.8 Billion in 2025, Set to Grow at a 10.0% CAGR

Data center lithium-ion battery market was valued at $5.8 billion in 2025 and is projected to reach $15.2 billion by 2035, growing at a CAGR of 10.0% during the forecast Period (2026-2035). Significant funding and investment in lithium-ion battery production and recycling are expanding capabilities, thus bolstering the market growth for large-scale energy storage solutions in data centers. For instance, in January 2026, Redwood Materials secured additional funding from Google, increasing its latest funding round to about $425 million. The investment supports the expansion of large-scale battery recycling and energy storage systems that can supply power infrastructure for AI-driven data centers and grid-scale storage applications.

Browse the full report description of “Data Center Lithium-Ion Battery Market Size, Share & Trends Analysis by Type (Lithium Iron Phosphate (LFP), Nickel Manganese Cobalt (NMC), Lithium Titanate (LTO), and Others), By Component (Cells (LFP), Battery Management System (BMS), Battery Racks/Modules, Safety & Monitoring Systems, Inverters/Converters, and Others), By Application (Uninterruptible Power Supply (UPS), Energy Storage Systems (ESS), AI Load Management, Edge Computing & Microgrids, and Others), By End-User (Cloud Service Providers, IT & Telecommunications, BFSI, Healthcare, and Others), Forecast Period (2026-2035)” at https://www.omrglobal.com/industry-reports/data-center-lithium-ion-battery-market

Investments Boosting Data Center Lithium-Ion Battery and Storage Growth

• In September 2025, Electroflow Technologies raised $10 million in seed funding led by Union Square Ventures and Voyager Ventures. The investment aims to commercialize advanced lithium extraction technology that produces lithium-iron-phosphate (LFP) cathode materials used in lithium-ion batteries for energy storage and backup power systems in data centers.
• In October 2025, Redwood Materials raised $350 million in a funding round led by Eclipse Ventures, with participation from Nvidia through its investment arm. The capital will be used to scale battery materials production and expand energy storage technologies supporting high-power infrastructure such as hyperscale data centers.

Market Coverage

• The market number available for – 2025-2035
• Base year- 2025
• Forecast period- 2026-2035
• Segment Covered-
  • By Types
  • By Component
  • BY Application
  • By End User
• Regions Covered-
  • North America
  • Europe
  • Asia-Pacific
  • Rest of the World
• Competitive Landscape - BYD Company Ltd., CATL (Contemporary Amperex Technology Co., Limited), LG Energy Solution, Ltd., Samsung SDI Co., Ltd., Panasonic Holdings Corp., Vertiv Group Corp., among others

Key questions addressed by the report.

• What is the market growth rate?
• Which segment and region dominate the market in the base year?
• Which segment and region will project the fastest growth in the market?
• Who is the leader in the market?
• How are players addressing challenges to sustain growth?
• Where is the investment opportunity?

Global Data Center Lithium-Ion Battery Market Report Segment

By Types

• Lithium Iron Phosphate (LFP)
• Nickel Manganese Cobalt (NMC)
• Lithium Titanate (LTO)
• Others

By Component

• Cells (LFP)
• Battery Management System (BMS)
• Battery Racks/Modules
• Safety & Monitoring Systems
• Inverters/Converters
• Others

By Application

• Uninterruptible Power Supply (UPS)
• Energy Storage Systems (ESS)
• AI Load Management
• Edge Computing & Microgrids
• Others

By End-User

• Cloud Service Providers
• IT & Telecommunications
• BFSI
• Healthcare
• Others

Global Data Center Lithium-Ion Battery Market Report Segment by Region

North America

• United States
• Canada

Europe

• UK
• Germany
• Italy
• Spain
• France
• Russia
• Rest of Europe

Asia-Pacific

• China
• India
• Japan
• South Korea
• Australia and New Zealand
• ASEAN Economies
• Rest of Asia-Pacific

Rest of the World

• Latin America
• Middle East & Africa

To learn more about this report request a sample copy @ https://www.omrglobal.com/request-sample/data-center-lithium-ion-battery-market