Delray Beach – September 13, 2026 -- The global data center energy storage systems market is set to grow from $5.17 billion in 2026 to $10.48 billion by 2032, a 12.5% compound annual growth rate, according to a new MarketsandMarkets report.
AI and cloud expansion drive storage demand across hyperscale facilities
Hyperscale, colocation, and enterprise data centers serving BFSI, healthcare, manufacturing, e-commerce, and IT & telecommunications clients are reinforcing power infrastructure as AI workloads strain grid capacity. Cloud & hyperscale data centers are projected to post the fastest growth among data center types at a 14.8% CAGR through 2032, commanding the largest revenue share as operators scale computing capacity requiring uninterrupted power.
Supercapacitors and renewable integration post the steepest growth rates
Among storage technologies, supercapacitor systems are forecast to expand fastest at a 16.5% CAGR from 2026 to 2032. By application, renewable integration & grid services is set to grow 18.3% annually, the report's highest rate, as operators blend on-site renewable generation into power strategies amid grid constraints. Extended backup power, used to supplement UPS systems during prolonged outages, is expected to remain the largest application segment overall. The 5-20 MW power capacity range is projected to dominate deployments, while energy storage devices are set to lead the component and management systems category.
North America leads market share while Asia Pacific grows fastest
North America is expected to hold the largest regional market share, backed by an established base of hyperscale and colocation facilities and continued AI infrastructure investment. Asia Pacific is forecast to register the highest regional CAGR over the same period, as data center construction accelerates across the region.
Tesla, CATL, and Samsung SDI anchor a market also shaped by agile startups
Tesla, Contemporary Amperex Technology Co. (CATL), LG Energy Solution, Samsung SDI, and Panasonic Holdings hold leading positions in the sector based on market share and product footprint. ZincFive, Active Power, and Skeleton Technologies have emerged as competitive smaller players by targeting niche technical gaps with faster product cycles.
Sector funding swung from $2.96 billion in 2019 to just $20 million in 2022
Investment activity in the space has been volatile. Deal funding stood at $2.96 billion across three deals in 2019, fell to $0.72 billion in 2020 on the same deal count, then rose to $1.80 billion in 2021 from a single deal. Funding collapsed to $0.02 billion in 2022 across one deal before rebounding to $1.28 billion across four deals in 2023.