Alsym Energy, the U.S.-based startup backed by India’s Tata Group, reports that batteries have shifted from optional equipment to essential infrastructure. CEO Mukesh Chatter notes that energy storage is now a foundational component for data center reliability, helping facilities navigate extreme power fluctuations that threaten consistent computing performance. This shift is mirrored across U.S., European, and Asian markets, where startups are struggling to keep pace with requests from the tech sector.

Major manufacturers are recalibrating their business models to capitalize on this trend. CATL, the world’s leading battery producer, anticipates that storage systems will soon comprise half of its total sales. This optimism is supported by record-breaking installation figures in the United States, where the industry added 3.3 GW of capacity in the first quarter—a 54% increase over previous records. According to data from the American Clean Power Association and Wood Mackenzie, the U.S. market is projected to quadruple in size within six years, driven by the dual pressures of renewable energy integration and the insatiable power demands of artificial intelligence.