Supply chain sources indicate that Samsung SDI, the leading manufacturer of battery cells for backup battery units (BBUs), plans to expand its production. Even Japan's Murata intends to enter the battery cell market. Beyond benefiting major battery cell manufacturers, Taiwanese battery module suppliers are also set to capitalize on this growth.
Samsung SDI expansion eases supply constraints
Industry insiders note that Samsung SDI's robust support for BBU demand in the second half of 2025 and into 2026 will ease previously reported battery cell shortages. This development suggests that Nvidia's new generation AI server GB300, will further fuel BBU shipment momentum.
Delta Electronics Chairman Ping Cheng recently pointed out that operations in the second half of 2025 could outperform those in the first half, primarily driven by AI server cooling and power solutions, which currently account for 27% of revenue and are expected to increase during that period. Lite-On president Anson Chiu also stated that BBU supply will be insufficient to meet demand in 2025, with "production matching sales" and virtually zero inventory. Lite-On is planning to expand BBU capacity significantly.
Taiwanese battery module makers, including AES, DynaPack, and STL, also express high confidence in BBU growth potential.
CSPs accelerate BBU deployment
Among the four major US-based cloud service providers (CSPs), AWS and Meta have already begun and are expanding their use of BBUs. Microsoft and Google have yet to adopt BBUs extensively but are accelerating their efforts.
Driven by AWS and Meta's demand, BBUs are currently in short supply. The entry of the other two CSPs is expected to ignite another wave of explosive demand.
To meet urgent customer needs, Samsung SDI—which holds about 80% of the global BBU market—has started aggressive capacity expansion and confirmed order requirements with its supply chain. Meanwhile, Murata, which acquired Sony's battery division in 2016, is reportedly considering entering the BBU market as well.
Murata's entry signals market opportunity
Taiwanese battery module suppliers highlight that AI-driven data center power revolutions have brought previously long-nurtured BBU opportunities to the forefront.
Previously, only Samsung SDI actively invested in developing BBUs, while other manufacturers remained on the sidelines. Now, even Murata is showing interest, underscoring how heated the BBU market has become.
According to industry experts, order visibility can extend several years due to continuous increases in AI server rack energy consumption, alongside environmental demands such as floor space efficiency and power usage effectiveness (PUE). Another key driver is geopolitical shifts creating new opportunities.
Analysts explain that US-based CSPs building AI server data centers avoid Chinese suppliers for critical components due to geopolitical concerns. This shift allows Japanese, South Korean, and Taiwanese battery supply chains to regain market share and capture new growth prospects.
Nvidia roadmap drives BBU integration
The AI era has triggered not just a power revolution but a complete overhaul of traditional data center design. Nvidia's GB200, now shipping in volume, consumes up to 2,700W per chip, significantly higher than the H100's 700W, boosting BBU demand.
The upcoming GB300 model will increase chip power consumption by an additional 15% to 20% over the GB200. When assembled into AI server racks, single-rack power usage may reach 120kW. Nvidia has revealed a roadmap indicating that the Vera Rubin architecture, launching in 2026 to 2027, will further enhance performance and push power consumption to 600kW per rack—a fivefold increase.
Whether featuring the GB200, the forthcoming GB300, or CSP ASIC servers, all are beginning to integrate BBUs. Unlike traditional uninterruptible power supplies (UPS), BBUs convert DC directly to DC, charge quickly, offer large capacity in compact sizes, and better meet AI data center energy conversion and floor space efficiency requirements. Demand for BBUs will grow even more with Nvidia's Vera Rubin architecture.
DIGITIMES Research notes that high-end AI servers' BBU demand rises with increasing power consumption. Future integration of BBUs with server power supplies may improve power stability. By 2026, BBU penetration in high-end AI servers is estimated to reach 30%, with the four major US CSPs leading adoption.
Article translated by Charlene Chen and edited by Jerry Chen
