As datacenters expand to meet the surging demand for storage and processing, the power supply supporting energy storage units have taken centre stage. This was reflected strongly in the Global Merchant Power Supply Market Report-2024 Edition. WAWT, a strategic and analyst firm, predicted the Storage application segment to grow robustly in revenue at a CAGR of 14%. The power supply in storage applications are critical for ensuring operational continuity, improving energy efficiency, and integrating renewable energy sources.

The Role of Energy Storage in Data Centers

Datacenters are power-hungry facilities, operating 24/7 to store, process, and manage vast amounts of data. Energy storage systems (ESS), such as battery-based solutions and other technologies, provide crucial backup power, help stabilize power fluctuations, and support sustainability initiatives by integrating renewable energy sources like solar or wind.

Power supplies for these energy storage units are specifically designed to charge, maintain, and discharge stored energy efficiently. They not only ensure the smooth operation of storage units but also provide critical support during outages, load balancing, and peak demand times. Without reliable power supplies, the effectiveness of ESS in managing power demand or ensuring uptime in the event of grid instability would be compromised.

Key Power Supply Technologies for Storage Units

Several power supply technologies are vital to supporting energy storage in datacenters:

1. Inverters for Battery Energy Storage Systems (BESS)

Inverters are critical converter when it comes to Battery Energy Storage Systems, converting DC power stored in batteries into AC power for use by datacenter equipment.

• Bi-directional Inverters: These allow for both charging the battery (AC to DC conversion) and discharging stored energy back to the system (DC to AC conversion). Their ability to reverse the flow of energy makes them essential for balancing power within datacenters, especially when paired with renewable energy sources.
• Efficiency and Stability: High-efficiency inverters with minimal energy loss are necessary for maintaining the reliability and cost-effectiveness of BESS. In modern datacenters, inverters often come with features like fast response times, real-time monitoring, and integration with management systems to ensure stable energy output during sudden demand spikes or outages.

2. Power Conversion Systems (PCS)

Power Conversion Systems regulate the charging and discharging cycles of the ESS, ensuring energy is stored and released when needed. In a datacenter environment, these systems are vital for managing how energy is stored during off-peak hours and released during periods of high demand.

• Energy Flow Control: PCS ensures smooth energy transfer between the grid, renewable sources, and energy storage units, optimizing the energy flow depending on real-time needs. This is especially important in datacenters with integrated renewable energy sources, where energy production may be intermittent.
• Grid Stability: The PCS works to stabilize the grid during demand surges or supply disruptions, ensuring a seamless transition between energy sources. This enhances the resilience of the datacenter’s power infrastructure and minimizes the risk of downtime.

3. Rectifiers and Chargers

Rectifiers are used to convert AC power from the grid into DC power, which is then stored in the ESS, such as in lithium-ion or flow batteries. Efficient rectifiers are key for minimizing energy losses during the conversion process.

• High-Efficiency Chargers: These are used to regulate the charging of energy storage units, ensuring they are charged optimally to avoid damage or degradation of the battery. Chargers with built-in management systems can also provide real-time data on the health and performance of energy storage units, which is crucial for datacenter operators to monitor.

4. Supervisory Control and Data Acquisition (SCADA) Systems

SCADA systems provide monitoring and control capabilities for the power supplies that support ESS. These systems play an integral role in ensuring the operational stability of both the power supply and the storage units by continuously analyzing performance and making real-time adjustments.

• Integrated Monitoring: SCADA systems track key metrics such as energy consumption, battery health, and charge/discharge cycles. By doing so, they ensure that power supplies are operating within safe and efficient parameters, preventing energy waste and prolonging the lifespan of the storage units.
• Remote Control: With the rise of distributed datacenters, SCADA systems enable remote monitoring and control of energy storage units, allowing for real-time troubleshooting and optimization across multiple locations.

Market Dynamics and Growth Drivers

As the datacenter industry moves toward greater sustainability and energy efficiency, the role of energy storage units and their supporting power supplies is becoming more critical. The following are some of the key growth drivers in the market:

1. The Rise of Renewable Energy Integration

Datacenters are increasingly turning to renewable energy sources to power their operations. However, because renewables like solar and wind are intermittent, energy storage systems are essential for storing excess energy generated during peak production periods and discharging it during times of low production or high demand.

Power supplies for ESS are evolving to accommodate these changes, with a focus on improving charging efficiency, storage capacity, and the seamless integration of different energy sources. Inverters, chargers, and rectifiers are being optimized to handle more complex energy flows and variable inputs from renewables.

2. Demand for Grid Stability and Load Balancing

As datacenters expand, they put more strain on the local power grids. Energy storage units help alleviate some of this pressure by balancing energy loads during peak usage times. Reliable power supplies for these storage units are essential to ensure that energy is available when needed without causing grid disruptions.

• UPS-ESS Integration: Modern UPS systems are increasingly integrated with energy storage units, allowing them to serve both as backup power sources and as a means of managing demand surges. Power supplies in these setups must be robust enough to handle the dual role, ensuring continuous power availability while optimizing energy consumption.

3. Energy Efficiency and Cost Management

Energy costs are one of the biggest operational expenses for datacenters, making efficiency a top priority. The efficiency of power supplies surrounding ESS can significantly affect the overall energy efficiency of the facility.

Advanced power conversion systems and high-efficiency chargers reduce energy losses during conversion, translating to lower operational costs over time. As the price of energy continues to rise, investing in efficient power supplies for energy storage systems is becoming a necessary strategy for datacenters looking to remain competitive.

Challenges with Power Supplies for Energy Storage Units

Despite the clear advantages, there are challenges associated with the power supplies used for ESS in datacenters:

• High Initial Costs: Implementing high-efficiency power supplies and integrating them with advanced energy storage systems can come with a hefty price tag. However, the long-term savings in energy costs and increased reliability often justify the investment.
• Complex System Management: As energy storage systems become more sophisticated, managing the power supplies that support them also becomes more complex. Operators need specialized knowledge and tools to ensure that the systems are functioning optimally.

Storage Power supplies: Looking ahead

Looking forward, the power supplies supporting energy storage units in datacenters are likely to experience several advancements:

• Increased Modularity: Modular power supply systems will allow data centers to scale their energy storage capacities in line with growing demands, without needing to overhaul the entire infrastructure.
• Smart Energy Management: Advanced monitoring systems will provide even deeper insights into energy use, allowing operators to optimize charging and discharging cycles and reduce operational costs.
• Hybrid Power Systems: As renewable energy integration grows, hybrid power systems that combine grid power, renewable sources, and energy storage will become more common, requiring power supplies that can handle the complex energy flows of these setups.

Conclusion

Power supplies for energy storage units are a critical component of the modern datacenter ecosystem. As the industry shifts toward greater sustainability, these systems will play an increasingly important role in ensuring operational reliability, reducing energy costs, and enabling renewable energy integration. By investing in advanced power supply technologies, datacenters can future-proof their operations and meet the growing demands of the digital age.

About Wired and Wireless Technologies (WAWT)

WAWT (Wired and Wireless Technologies), a strategic technology analyst and consultancy firm, specializes in the wireless power and power supply industry. Its comprehensive research and reports on the power supply industry, titled “AC-DC and DC-DC Merchant Power Supply Market Report” and “External Power Adapters and Chargers Market Report”, offer critical market data, trends, insights and market intelligence. It provides the latest market size estimates and forecasts for the power supply market, benefiting companies across the power supply ecosystem. The report analyses the market across various segments – by product; application sector (including servers, storage, networking, datacentres, telecom, medical, industrial, lighting, railways, etc); region; power class and others; and includes a detailed competitive analysis of power supply vendors looking at their market share. Furthermore, it ranks all profiles of power supply companies based on their revenues, across industry sectors, including datacentres.

WAWT‘s report is an invaluable resource for businesses seeking to understand the power supply landscape, make informed decisions, and stay competitive in this dynamic industry.

Feel free to contact our subject matter experts (SMEs) by emailing analyst@wawt.tech and following our LinkedIn page (WAWT) for the latest market trends, insights and updates on power supplies and allied technologies.