Amid the rapid rise of AI workloads, data centers are increasingly being repurposed to address the surging power needs of AI training and inference. These evolving requirements are driving significant market opportunities as operators seek solutions for power availability, cooling infrastructure, and supply chain resilience.
Through ongoing discussions with relevant industry experts, the team is able to deliver clear perspectives on how increased AI workloads are reshaping data center infrastructure, the growing importance of advanced energy solutions, and the evolving links between the EV sector, data centers, and global supply chains amid geopolitical uncertainty.
AI WORKLOAD IMPACT
The exponential growth in AI workloads, particularly for training and inference, is fundamentally reshaping data center requirements.
To better understand the immediate impact on the power demands of data centers, Guidepoint organized discussions with key industry experts including a Former Product Manager from Shanghai Huawei Technologies Co., Ltd. , a Former Product Manager from CoolIT Systems, and a former Vice President of Equinix to get a better sense of the current data center bottlenecks and their associated opportunities.
Key Takeaways:
“Power density per rack has increased from traditional 10 kW to as much as 600 kW for the latest AI clusters, necessitating new approaches to power delivery, cooling, and facility design.”
“That density also becomes a factor in which case direct liquid cooling becomes more and more important.”
“Most developers are having to rethink their data center design for densification for AI GPU workloads. Buildings can become obviously smaller, but cabling sizes and power integration for the incoming will get larger. ”
“I think supply chain is the most underappreciated risk, and the second one to that would be power. Power is a real challenge, and then the supply chain for behind-the-meter generators, turbines, and all that. It’s a challenge globally.”
EV BATTERY TECHNOLOGY CONVERGENCE
Battery Energy Storage Systems (BESS) are advanced energy storage solutions essential for both electric vehicle operations and supporting infrastructure such as charging stations and grid management. As demand for reliable, high‑capacity power grows, BESS is drawing increased attention for its role in powering data centers.
Guidepoint Insights has held forward-looking discussions with experts in this advanced field, including a Sr. Director for AI Supercomputers and Systems, Models, Infrastructure Programs of Tenstorrent and the Co-Founder and Vice President of Sales, Gulf Power Services, to better understand the current integration patterns of BESS in the data center market.
Key Takeaways:
“BESS is used in hyperscaler data centers for critical system backup and power supply, often paired with solar or natural gas systems.”
“Stand-alone BESS is lucrative in areas with grid volatility, providing ancillary services and responding to high electricity prices.”
“BESS prices have fluctuated due to tariffs, currently about 10% higher than at the beginning of the year.”
“Adoption of BESS is closely tied to the rise of renewables and is expected to accelerate as data centers seek to decarbonize and manage grid instability.”
GEOPOLITICAL AND SUPPLY CHAIN CHALLENGES
The global battery supply chain is under significant pressure due to geopolitical tensions, tariffs, and the urgent need for secure, diversified sourcing of key raw materials and components for battery production.
Guidepoint Insights spoke with market experts including a former Senior Chief Motion Integration Engineer at Geely and a Senior Director of Vehicles and E-Mobility from Transport & Environment to understand the supply implications for the data center market, particularly as data centers increasingly rely on advanced battery storage for backup power, grid services, and energy cost management.
Key Takeaways:
“For the foreseeable future, data centers will continue to rely on mature lithium-ion chemistries (LFP, NMC) as next-generation options remain in pilot or early commercialization phases.”
“The battery supply chain remains highly exposed to disruptions in critical minerals which could lead to higher costs and supply shortages for data center battery projects.”
“Regional manufacturing can reduce lead times, improve supply security, and help data centers meet regulatory or ESG requirements for local content and responsible sourcing.”
“Data center operators may benefit from forming strategic partnerships with battery manufacturers and material suppliers to secure priority access and favorable terms.”
LOOKING FORWARD
The APAC data center market is undergoing rapid growth, fueled by the intersection of AI innovation, advanced energy solutions, and shifting supply chain dynamics.
Through ongoing dialogues with pioneering engineers, research scientists, and industry specialists, Guidepoint Insights maintains unique visibility into this sector’s latest developments.
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