Powering Data Center Success with Immediate Power Solutions (IPS)

In the next five years, energy demand in data centers is projected to rise by approximately 400 terawatt-hours with a compound annual growth rate (CAGR) of 23%. Meeting this rapid power escalation is only part of the equation—data center operators must also navigate rising real estate costs and increasingly stringent sustainability expectations from regulators and customers, among other challenges.

Amid these challenges lies a valuable opportunity to innovate. New approaches to backup power are emerging that not only support escalating energy needs but also enhance reliability, optimize space utilization, and promote environmental responsibility. Historically, long-duration Energy Storage Systems (ESS) have been the primary market solution, favored for their availability and capacity. However, as organizations prioritize operational efficiency, attention is shifting toward Immediate Power Solutions (IPS), which utilize power density to support the dynamic and mission-critical demands of modern data centers.

The future success of data centers will depend on their ability to integrate both ESS and IPS in a thoughtful, strategic manner, leveraging the strengths of each to build resilient, efficient, and sustainable operations.

The Role of Immediate Power Solutions (IPS)

It is important to distinguish between long-duration and short-duration energy storage when exploring the value of IPS. Long-duration solutions emphasize energy storage capacity, also known as energy density, as their primary benefit. In contrast, short-duration systems are defined by their ability to deliver high levels of power quickly, making power density their most critical attribute.

As technology advances and the energy landscape continues to evolve, the limitations of a universal solution become increasingly apparent. Though different scenarios call for different capabilities: some applications require sustained energy delivery, while others depend on rapid power discharge. This shift in perspective has led to the emergence of a distinct category known as Immediate Power Solutions (IPS), characterized by its ability to provide instantaneous, high-rate power for durations ranging from several minutes down to mere microseconds. These solutions are vital across a variety of industries, from industrial operations and manufacturing processes to fast-charging infrastructure for electric vehicles. IPS can also play a critical role in supporting traditional long-duration energy storage or generation systems by supplying power during ramp-up phases or peak-load conditions. One of the most prominent and well-suited use cases for Immediate Power Solutions (IPS) lies in supporting uninterruptible power supply (UPS) systems within data centers – particularly in addressing the unique demands of GPU and AI-driven pulse loads.

With growing acknowledgement of the value in IPS systems, stakeholders in the short-duration energy storage space are better positioned to clearly define their needs, distinguishing them from long-duration applications that, until now, were often misapplied due to the absence of an appropriate alternative. This misalignment is particularly evident in the widespread reliance on lithium-ion rechargeable batteries.

These batteries, which are designed for high energy density, perform exceptionally well in long-duration use cases such as grid storage for renewables and electric vehicles. However, when it comes to short-duration, high-power demands – like those found in UPS systems for data centers or AI/high-performance computing (HPC) racks – lithium-ion batteries are less than ideal. Despite this, they are frequently used in these applications out of convenience or availability, leading to suboptimal performance and reduced overall efficiency within data center operations.

Unlocking the Right Battery for IPS

When the IPS systems in data centers are recognized, the next crucial step is selecting the right chemistry to fully realize the benefits of short-duration energy storage. Among the available options, nickel-zinc batteries are increasingly outperforming traditional choices like lead-acid and lithium-ion in key areas.

Lead-acid batteries, one of the earliest technologies used in IPS applications, have long been viewed as reliable, safe, and cost-effective. However, their large size, environmental impact, and limited power output are limitations that are increasingly incompatible with the demands of modern data centers.

Lithium-ion batteries have since gained traction, with their relatively compact size and lighter weight providing an attractive advantage for data center operators who are constantly optimizing for space and profitability. Yet, despite these benefits, lithium-ion chemistry still falls short in meeting the high-power density and rapid discharge requirements essential for effective UPS performance. As such, these systems often fail to deliver the responsiveness needed in environments driven by AI and high-performance computing.

Nickel-zinc (NiZn), by contrast, delivers high power in a compact and sustainable form, making it a promising candidate for next-generation IPS applications where space, efficiency, and fast response are all critical.

When evaluating different battery chemistries for UPS applications, one of the most critical performance metrics is slew rate – the speed at which a battery can deliver the required amount of energy. In a UPS environment, a high slew rate is essential to prevent downtime during power interruptions. While IPS systems are designed to deliver power almost instantaneously, as a comparison, if a long duration ESS product was used in this application it could take up to 20 seconds to reach full power output depending on the technology, which could be catastrophic in mission-critical environments like data centers.

Nickel-zinc-based IPS solutions bring notable benefits in both space efficiency and operational performance. They can instantly power an entire data center while using less than half the space of conventional systems, allowing operators to allocate more room to revenue-generating servers. Additionally, NiZn batteries offer enhanced reliability without the risk of thermal runaway found in alternative chemistries, effectively reducing both the likelihood of outages and the need for costly safety infrastructure. 

Driving Sustainability and Efficiency Through IPS Adoption

IPS batteries also offer significant sustainability benefits, including the reduction of Scope 3 emissions for end users. For data center operators, including hyperscalers, sustainability is becoming a crucial differentiator, as many face pressure to meet emissions reduction targets across their infrastructure. Given the central role data centers play in delivering digital services, powering these facilities in a more environmentally responsible way has become a top priority for forward-thinking operators.

With significantly lower water usage and lifecycle emissions of volatile organic compounds (VOCs) compared to traditional lithium-ion and lead-acid options, nickel-zinc solutions contribute to an overall smaller environmental footprint.

Embracing IPS as part of the power infrastructure allows organizations to take a more integrated approach to aligning operational efficiency with environmental responsibility. As demand for data center capacity continues to grow, the choices organizations make today will have lasting effects across the entire power value chain. By adopting advanced technologies and optimizing for immediate power delivery, operators can realize meaningful efficiency gains while positioning themselves as sustainability leaders in the digital age.