- Panasonic claims that AI expansion is rapidly pushing demand for data center backup batteries
- The customers have committed in advance to 80% of Panasonic’s production capacity
- Panasonic is evaluating its Kansas plant to support additional battery output for data centers
The RAM crisis has been lingering for a while and has shown no signs of easing, and it’s now spreading to storage, where gaming PC manufacturers are warning that CPUs could be next.
As companies struggle to manage the impact of this crisis on planning cycles, the pressure is now extending to less visible parts of the data center stack.
Now, Panasonic has said that demand for backup batteries is increasing rapidly, largely driven by the expansion of AI infrastructure that requires stable, continuous power.
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Batteries as critical infrastructure
Panasonic says it has already allocated about 80% of its planned production to existing customers, leaving only a limited share for new buyers trying to scale systems.
Its batteries are designed to sit in server racks, providing short bursts of backup power that keep systems running during brief outages.
But this component now appears to be a major bottleneck, as uninterrupted power is essential to prevent costly downtime and protect critical AI workloads.
As organizations expand their data center operations and add more servers, supporting systems such as power backup become more difficult to secure within predictable timelines.
This means that buyers outside of existing supply agreements may find themselves competing for a limited share of the batteries as increasing demand for AI infrastructure strains production capacity.
To respond to the growing demand, Panasonic plans to expand the production of lithium-ion cells in Japan by about three times and adapt parts of its car production lines to produce data center batteries.
It is also evaluating whether its Kansas plant can support additional output for data center applications.
These moves reflect an attempt to redirect capacity toward computing-related demand as AI systems continue to expand.
Alongside batteries, the company is working on supercapacitors as an alternative form of backup energy.
Unlike conventional capacitors, which release energy almost instantly, supercapacitors store larger amounts and discharge more gradually.
Panasonic says these components will be used “to absorb power load fluctuations,” with shipments expected to begin in fiscal 2027.
The company expects battery sales tied to data centers to reach 800 billion yen, roughly $5 billion, by 2029, a figure that assumes continued growth in AI-related infrastructure.
However, meeting this demand depends on production scaling as planned, which remains uncertain given existing supply pressures.
The situation suggests that infrastructure expansion is encountering limits beyond processing hardware – although it remains uncertain how persistent these limits will be and whether supply can be adjusted in time.
Via The register
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