Lithium-Ion Batteries Are Transforming Google’s Data Centers

Sometimes, small announcements can reveal significant underlying trends. A recent example is Google’s revelation that it has installed 100 million lithium-ion battery cells across its data centers to provide backup power for its servers. While this may not seem groundbreaking at first glance, it highlights a broader shift reshaping industries worldwide. The rapid advancements in battery technology, driven largely by the push to reduce costs for electric vehicles, are now influencing diverse sectors of the economy.

In the past, Google’s data centers relied on lead-acid batteries for backup power. These units were dependable but bulky, heavy, and relatively low in power capacity. By transitioning to lithium-ion cells, Google has unlocked multiple advantages. The new batteries offer twice the power in half the space, allowing the company to reduce the number of required cells by 75%. This efficiency frees up valuable space for additional servers, which directly contribute to revenue, unlike batteries that serve as a form of insurance against power outages. Given that developing one square foot of a new data center costs at least $125, according to JLL, optimizing space is critical.

The impact of lithium-ion batteries extends far beyond data centers. In residential settings, homeowners are adopting large, multi-kilowatt battery systems to store excess solar energy and maintain power during outages. At campsites, portable battery packs are replacing noisy, polluting generators. Even in niche applications, such as medical specimen shipments, startups are using small battery cells to replace dry ice, offering better temperature control and enhanced tracking capabilities.

While Google’s installation of 100 million lithium-ion cells since 2015 is notable, it pales in comparison to the scale of battery production elsewhere. For instance, Panasonic has shipped over 10 billion cells from its Nevada facility since 2015. Despite this disparity, Google’s adoption of lithium-ion technology underscores the subtle yet transformative role batteries are playing in unexpected areas. From data centers to homes and beyond, the ripple effects of battery innovation are reshaping how industries operate, proving that even modest changes can drive significant disruption.