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AI Boom Strains Data Center Battery Supply
31 Mar
Summary
- AI expansion is rapidly increasing demand for data center backup batteries.
- Panasonic has already committed 80% of its production capacity to existing clients.
- The company is exploring plant expansions to meet rising battery demand.
The burgeoning expansion of artificial intelligence infrastructure is creating a significant surge in demand for data center backup batteries, according to Panasonic.
The company has reported that approximately 80% of its planned battery production capacity has already been pre-committed to existing clients. This leaves a limited supply for new customers seeking to scale their AI systems, potentially causing delays.
In response to this escalating demand, Panasonic is undertaking significant production scaling efforts. These include plans to triple lithium-ion cell production in Japan and repurpose automotive manufacturing lines for data center batteries. The company is also evaluating its Kansas plant for potential additional output.
Panasonic anticipates that its data center battery sales could reach ¥800 billion (approximately $5 billion) by 2029, contingent on continued AI infrastructure growth and successful production scaling. Alongside batteries, the company is developing supercapacitors, expected to begin shipments in its 2027 financial year, to manage power load fluctuations.
