Sodium-ion batteries for data centres could play a role in data-centre energy storage, particularly where battery safety is a priority. However, lower energy density and higher costs than established lithium-ion technologies mean their adoption is likely to be selective.
As data-centre power requirements increase, battery energy storage systems (BESS) are becoming an important part of the infrastructure needed to support reliable power. Sodium-ion technology is attracting interest as an alternative to lithium-ion, with its safety characteristics potentially making it suitable for applications where tolerance for battery fire risk is particularly low.
Where could sodium-ion batteries fit in data centres?
Sodium-ion batteries could be most relevant in stationary storage applications where safety is more important than energy density.
Data-centre operators need storage systems that can provide reliable backup while meeting stringent safety requirements. Sodium-ion batteries have lower energy density than lithium iron phosphate (LFP), the established lithium-ion chemistry widely used in BESS, but their safety characteristics could support adoption in selected applications.
This does not mean sodium-ion batteries are set to replace lithium-ion across data-centre storage. Instead, the technology could provide another option as operators assess different combinations of performance, cost and safety.
How do sodium-ion batteries compare with lithium-ion for data-centre storage?
Sodium-ion batteries currently have lower energy density and higher costs than LFP, while their safety characteristicxs could amke them attractive for selected applications.
For data-centre storage, the main considerations include:
- Energy density: sodium-ion cells have lower energy density than LFP, potentially increasing space requirements.
- Safety: their safety characteristics could make them attractive where there is very low tolerance for fire risk.
- Cost and maturity: LFP is already an established BESS technology, while sodium-ion supply chains and manufacturing capacity are still developing.
These trade-offs mean the choice of battery chemistry will depend on the requirements of the individual application rather than a straightforward switch from one technology to another.
What could drive sodium-ion battery demand in data centres?
Growing data-centre capacity could create opportunities for sodium-ion batteries where safety is prioritised.
The expansion of AI and other high-performance computing applications is increasing investment in data-centre infrastructure. As this build-out continues, demand for energy storage is also likely to grow, creating opportunities for battery technologies with different performance and cost characteristics.
CRU expects LFP to remain the dominant BESS technology, meaning sodium-ion is more likely to develop alongside established lithium-ion chemistries than displace them outright. Its longer-term opportunity will depend on how quickly manufacturing scales, how costs develop and where its safety advantages provide enough value to outweigh its lower energy density.
For a deeper look at the technology, costs and potential applications, see CRU’s analysis of opportunities for sodium-ion BESS in data centres.
To understand more about the battery technologies used in data centres and forecasted battery costs by supply chain route, please contact CRU's Battery Technology and Cost team.
© CRU. All rights reserved. This content may not be copied, reproduced, republished, distributed, or otherwise used, in whole or in part, without CRU’s prior written permission. Please refer to CRU's Terms and Conditions.
