Battery Backup Units (BBUs) Supporting Power Infrastructure in the Generative AI Era:New Challenges for Data Centers and Solutions

Power demand and energy sources of data centers in the generative AI era

The rapid development of generative Artificial Intelligence (AI) technology has driven the emergence and commercialization of large language models (LLMs) such as ChatGPT (GPT-4) and Llama 2. These LLMs require immense computational power to train on vast datasets. Additionally, AI agents—integrated systems combining multiple AI technologies and devices capable of autonomous decision-making—are under active development, further increasing processing loads for the foreseeable future.

Against this backdrop, hyperscalers—leading cloud service providers such as Google, Amazon Web Services (AWS), and Meta—are investing heavily in high-performance, energy-efficient data centers optimized for AI utilization. For example, the NVIDIA DGX H200 supercomputer, equipped with high-performance graphics processing units (GPUs) for AI workloads, consumes up to 10.2 kW of electricity—roughly 5 to 40 times more than a traditional server, which typically uses 0.5 to 2 kW.

Rising power demand has led to significantly higher power consumption by data centers. According to Electricity 2024 published by the International Energy Agency (IEA), data centers consumed approximately 460 TWh of electricity in 2022, a figure projected to exceed 1,000 TWh by 2026. This figure is nearly equivalent to Japan’s total annual power consumption.

Under these circumstances, securing stable and highly reliable power sources is a prerequisite for data center operations. In particular, Battery Backup Units (BBUs), which provide temporary power during momentary fluctuations or outages to preserve active data and enable safe system shutdowns, are rapidly becoming vital for protecting information-based assets.

Types of backup power devices and characteristics of BBUs

There are various backup power solutions designed for different applications and environments. A clear understanding of their characteristics and differences is essential for selecting the appropriate power protection devices.

• ESSs

Energy Storage Systems (ESSs) refer to large-scale power storage systems for energy management. Their primary uses include smoothing fluctuations in renewable energy output and enabling peak demand shifting. ESSs also help stabilize power system frequency and regulate output, thereby supporting the delivery of high-quality power—critical for stable infrastructure operations.

ESSs can store electricity for durations ranging from several hours to days, making them valuable for large-scale power management and optimizing the balance between supply and demand across communities.
Reference website: Energy storage systems (ESSs) based on lithium-ion batteries

• UPSs

Uninterruptible Power Supplies (UPSs) refer to devices that provide power for durations ranging from several minutes to hours if the power supply is disrupted. They allow connected systems to continue operating stably during sudden outages or momentary voltage drops. In the event of extended power losses, UPSs support safe system shutdowns to prevent equipment failure or data loss in critical systems.

UPSs also protect against voltage fluctuations, thereby helping maintain power quality. In data centers, they serve as bridge power sources until primary power sources recover and are considered essential infrastructure for enhancing overall system reliability.

• BBUs

Battery Backup Units (BBUs) are specifically designed to provide short-term backup power for several seconds to minutes during momentary power fluctuations or outages.
Even momentary power loss can significantly impact systems with high-speed, high-capacity volatile memory—such as high-performance GPU servers used in AI processing—by instantly erasing data stored in memory. BBUs are essential for safely transferring large volumes of data from volatile memory to non-volatile memory or other storage systems. Compared to UPSs, BBUs are more compact and can be installed on a per-rack basis, distributing them across multiple racks and making them a space-efficient, low-maintenance option for data centers as they become increasingly high-density.

The diagram below illustrates the functions and typical installations of BBUs, UPSs, and ESSs. BBUs are garnering particular attention as a space-efficient, fast-response solution.

BBU market expansion and underlying changes

The BBU market is rapidly expanding alongside the proliferation of AI servers. The adoption of GPU-based high-performance computing units has significantly increased power consumption, driving the need for infrastructure capable of instantaneous and stable power delivery.

Particular attention is being paid to proactive capital investments in AI infrastructure by leading hyperscalers, including Microsoft and Alphabet, the parent company of Google. According to a
Reuters report from April 2024, Microsoft’s capital investments rose to $11.5 billion in the first quarter of 2024, a $300 million increase from the previous quarter. Alphabet’s capital investments reached $12 billion, a 91% year-over-year increase. Analysts predict investment in AI-supporting infrastructure will continue to grow.

These proactive investments by leading cloud providers are driving demand for overall data center infrastructure, including power backup systems for high-performance AI servers. Each AI server consumes over 10 kW of electricity, requiring BBUs to handle increasing current and voltage requirements each year.

According to Grand View Research’s Data Center UPS Market Report 2024–2030, the global market for data center UPSs (including BBUs) was valued at approximately $4.040 billion in 2024 and is projected to grow to around $6.411 billion by 2030.

Moreover, the ongoing shift toward distributed processing from the cloud to the edge has increased demand for compact BBUs in edge data centers, where space efficiency and flexibility are key priorities. Existing UPSs are also being replaced with BBUs, particularly in emerging countries, reflecting the global diversification of power backup solutions.

BBU challenges and evolving safety measures

The proliferation of BBUs has brought safety challenges to the forefront. The integration of multiple lithium-ion battery cells within BBU systems increases the risk of serious incidents —including swelling, rupture, and fire—especially as batteries deteriorate due to overcurrent, overcharging, or repeated charge-discharge cycles.

To avoid these risks, secondary protection mechanisms are essential; they ensure that BBUs can instantly detect abnormalities and physically isolate the battery from the charging-discharging circuit to prevent further escalation. Given that AI servers demand high power in short bursts, secondary protection circuits must be engineered for high reliability, featuring high-speed cutoff, low internal resistance, and false trigger prevention.

By implementing the right secondary protection solution, the risk of catastrophic failures such as fire or equipment damage can be avoided. Furthermore, isolating faulty units from the system helps maintain the overall health and reliability of the entire unit network.

SCP: Establishing new BBU protection standards

Dexerials’ Self Control Protectors (SCP)— surface mount fuse solutions for secondary protection—detect electrical abnormalities such as overcurrent and overvoltage, then physically disconnect the affected circuits. In systems equipped with multiple lithium-ion battery cells, such as BBUs, SCPs ensure fast and reliable power cutoff, enabling the removal or replacement of faulty units to maintain system integrity.

Each SCP unit provides protection, and its compact, lightweight design makes it ideal for high-density mounting. Additionally, our SCPs do not have a self-reset function to enhance safety, preventing secondary risks associated with false triggers or unintended power restoration.

These capabilities make Dexerials’ SCPs key solutions in the design of AI server BBUs, offering high safety, reliability, and design flexibility. For a detailed technical overview, refer to “Basic knowledge on secondary protection elements: What is ‘SCP’? — Protections of lithium (Li)-ion batteries from ignition.”

Potentials of BBUs and SCPs: Cornerstones of power infrastructure reliability

The development of generative AI has ushered in a new phase of evolution for power infrastructure in data centers. In particular, BBUs are essential for protecting critical data and systems from momentary power losses.

While BBUs play a key role in power protection, challenges remain in maintaining and managing their integrity to ensure they function reliably in emergency situations. . Tackling these challenges requires the rapid identification and removal of faulty or unreliable units, which is made possible by integrating highly reliable secondary protection fuses. These fuses ensure overall system safety by preventing further escalation through circuit isolation and forcibly shutting down high-risk units.

Looking ahead, Dexerials is committed to delivering safety and reliability through its surface mount fuses (SCPs), while meeting BBU market demands to support higher currents. Through these efforts, we aim to create new value in this growing sector.