Not Just Memory: This Component Is Also in Demand Due to the AI Boom

The explosion in artificial intelligence (AI) trends, which initially triggered a memory crisis, is now expanding to other components. Besides memory, the AI boom also has the potential to make data centre batteries scarce. Indications of this are evident from the rapidly increasing demand for backup batteries from Panasonic. According to Panasonic, this demand is largely driven by the expansion of AI infrastructure that requires stable and continuous power. The Japanese company stated that it has allocated around 80% of its planned production output to existing customers, leaving only about 20% of stock for new customers. Panasonic’s batteries are designed to be placed inside server racks. Their function is to provide backup power temporarily, to keep systems running during downtime, especially when disruptions or system failures occur. To address the high demand, Panasonic plans to double lithium-ion cell production in Japan, up to three times the current level. Panasonic will also deploy automotive equipment production lines to assemble data centre batteries. Furthermore, the company is considering whether its factory in Kansas can support additional production. Not only batteries, Panasonic is also developing supercapacitors as an alternative to backup batteries. Unlike conventional capacitors that can deliver power instantly, supercapacitors can store a larger amount of power and release it gradually. Thanks to the surge in demand, Panasonic estimates that sales of data centre-related batteries will reach 800 billion yen (approximately Rp 86 trillion) in 2029, assuming the growth of AI infrastructure continues. However, the company acknowledges that achieving this target still depends on its success in increasing production capacity amid ongoing supply pressures.