Baku:The rapid growth of artificial intelligence and cloud computing technologies is significantly increasing electricity consumption by data centers, leading to a surge in demand for battery energy storage systems, as reported by the Azerbaijan State News Agency.

According to Azerbaijan State News Agency, a strategic adviser on data centers and hyperscalers, the number of data centers worldwide has reached 12,259 as of the end of September. The United States hosts approximately 40% of these data centers, followed by the United Kingdom with 4.6%, Germany with 4.3%, France with 3.2%, and China with 3.1%.

Data centers, which are facilities with large numbers of servers and networking equipment, play a crucial role in storing, processing, and making digital information accessible. Artificial intelligence technologies, in particular, are accelerating data centers' energy consumption due to their capability to analyze large datasets for various tasks. As a result, battery energy storage systems are becoming essential to ensure uninterrupted power supply.

Kadem Usta, chairman of the Turkish Battery Manufacturers and Suppliers Association (PILDER), explained that the AI and cloud computing revolution has transformed data centers into significant energy consumers. He emphasized the importance of uninterrupted electricity for these technologies and noted that existing power grids often struggle to meet their substantial power demands.

Usta highlighted that this unprecedented energy demand from AI-powered data centers is now the second-largest driver of growth in the global battery industry, following the electric vehicle sector. He noted that global lithium-ion battery production increased from 1.05 terawatt-hours in 2023 to 2.3 terawatt-hours in 2025, with energy storage system batteries accounting for 20% of this production.

He further mentioned that the battery industry has evolved beyond powering vehicles to becoming a strategic sector that supports the continuous operation of the digital world. Usta also pointed out the importance of battery chemistry in large facilities, with lithium iron phosphate batteries, known for their thermal stability, representing 65% of global production last year.

With China producing 86% of the world's batteries, data centers' growing energy needs are reshaping production lines and supply chains worldwide. Usta concluded that the industry is entering a new era where battery production must keep expanding to sustain the flow of digital data.