More Than An Afterthought: The Increasingly Important Role Of Battery Storage In Data Centers

When people think of data centers, power is often the first thing that comes to mind. The amount of power a facility uses, the sustainability concerns surrounding that usage, and the pressure data centers place on the grid are often major topics of discussion. 

But there is one key aspect of data center power that is often overlooked: storage. 

“Storage is by no means the most expensive piece of the data center power puzzle, but it may be the most critical,” said Michael Sirard, chief technology officer at MPINarada, the North American operation of Narada, a global battery manufacturer. 

Sirard, who has 30 years of experience in battery technology and manufacturing, has been through the lead-acid era, the early lithium transition and now the artificial intelligence-driven infrastructure boom. He has seen it all when it comes to data centers and is committed to helping the industry — as well as the real estate professionals and investors connected to it — understand the importance of battery storage. 

Regardless of how data centers generate their power, whether it is from the grid, turbines, generators, natural gas, diesel or even the much-discussed nuclear option, they will always need a backup source, Sirard said. Grids go down, generators have fluctuations, and this is where battery storage plays a key role in keeping data centers online. 

“Energy storage is increasingly a risk management decision, not just an infrastructure spec,” he said. “It affects uptime guarantees, tenant lease terms and how a facility is underwritten.”

Solving The Power Problem 

Sirard said there is a wide range of how seriously operators are approaching energy storage. Some have made it a core infrastructure decision from Day 1, while others are still treating it as a budget line to be minimized. Sirard has seen both in his customer base and said he believes that making serious battery storage decisions today can positively impact the long-term value and competitiveness of a data center. 

For its part, MPINarada is focusing on energy storage and offering data centers battery options based on their unique needs, from lithium iron phosphate to lead-acid solutions. 

He said there are different approaches to batteries in a data center, particularly in hyperscale centers that have larger power requirements. There are short-duration uninterruptible power supply systems, which serve as a bridge from a backup battery to a generator solution.

“The goal is I'm going to back it up for a short period of time, and then I can transfer all of that data processing to another facility in another area,” Sirard said. 

With longer-duration systems, the goal isn’t to move the data but instead to utilize a bank of batteries to provide backup for a number of hours until power is restored. 

The Role Of Battery Storage On The Road Ahead 

In a previous Bisnow article, Sirard said the data center industry is “moving away from relying solely on the grid and short‑duration UPS systems and instead shifting toward hybrid power models that blend on-site generation with long‑duration energy storage.” 

He said he believes that, despite what people may think, more on-site generation actually makes storage more important, not less. Every new power source creates transition moments, points where the load moves from one source to another, and the battery is what makes those transitions invisible to the tenant.

“Regardless of the chemistry, I don’t see any data centers getting away with not having some alternate stored energy source on-site with a self-generation system,” Sirard said. 

He said that despite its importance, battery storage remains overlooked in the data center industry, and it is time for operators and stakeholders to take this important feature into account. With the demands placed on modern data centers, there is “10 times” more work happening in these facilities, he said. This means that 10 times the usual number of battery storage technicians are needed, and trying to find these qualified people will continue to be a challenge for the industry moving forward, he said.  

“Most people think of the battery as an afterthought,” Sirard said. “We often hear, ‘We have so many other things that we have to take care of, the battery is just the battery.’ But the fact remains that when it comes to battery storage, what you use, how you take care of it and how it's integrated is really a big part of your facility. There’s just not enough expertise out there.” 

This article was produced in collaboration between MPINarada and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.