Global Energy Storage Market Surge Driven by AI Data Centers and China's Competitive Edge

The global energy storage market reached $295 billion in 2025, with a projected CAGR of 9.53% to $465 billion by 2030[^1]. Global storage installation volume is expected to hit 260-270 GWh in 2025, up 30%-40% year-on-year[^1]. China’s energy storage lithium battery shipments are forecasted to reach 580 GWh in 2025, growing over 75%[^1].

US AI data centers are a key driver of storage demand, with projections of 18 GWh in 2025, rising to 279 GWh by 2028 (CAGR >150%)[^3][^5]. Data center power consumption as a share of US total electricity use will increase from 4.4% in 2023 to 6.7%-12% in 2028[^3]. Backup power duration for data centers is evolving from 2 to 4 hours, with storage allocation rising from 15% to 30%[^3].

The surge in storage demand is driving upstream material needs: global lithium carbonate demand will reach 155万吨 in 2025[^1]. Electrolyte prices have seen significant increases due to strong demand[^1]. Lithium iron phosphate (LFP) batteries dominate new storage installations with over 97% market share[^1].

China’s storage firms lead globally in battery shipments, leveraging cost advantages and sufficient production capacity[^8]. By 2030, China’s available backup power capacity will be ~400 GW, three times the expected global data center power demand[^3]. US grid aging and complex environmental approvals create opportunities for Chinese firms to enter the market[^3].