Nickel-zinc (NiZn) battery technology is emerging as a leading candidate for next-generation data centre energy storage, particularly as artificial intelligence (AI) workloads place new demands on power infrastructure, according to a think piece by ZincFive CEO Tod Higinbotham.
Writing in Intelligent CIO, Higinbotham argues that the rapid growth of AI is reshaping requirements for uninterruptible power supply (UPS) systems, with conventional chemistries struggling to cope with highly dynamic load profiles.
AI-driven data centres, particularly those using GPU clusters, are characterised by rapid spikes and drops in power demand occurring within milliseconds. These fluctuations can strain traditional battery systems, which were not designed for such high-frequency cycling.
Nickel-zinc chemistry, he says, is better suited to these conditions due to its high power density and ability to charge and discharge rapidly. The technology can deliver instantaneous response to fluctuating loads, enabling more efficient handling of AI workloads without requiring significant overbuild of supporting infrastructure.
Safety is also positioned as a key differentiator. Unlike lithium-ion batteries, NiZn systems use a non-flammable aqueous electrolyte and operate without the risk of thermal runaway at cell level, addressing a major concern for mission-critical environments such as data centres.
Higinbotham also highlights sustainability advantages, noting that nickel-zinc batteries are based on widely available, non-toxic materials and are more than 90% recyclable. Lifecycle analyses suggest they can deliver 25–50% lower greenhouse gas emissions compared with lead-acid and lithium-ion alternatives, while also significantly reducing water consumption.
In addition, the technology’s longer service life – up to 15 years – and reduced maintenance requirements are said to lower total cost of ownership and minimise operational disruption.
Nickel-zinc the ‘gold standard’
The CEO argues that these combined attributes — high power performance, safety, compact footprint and sustainability – position nickel-zinc as a strong contender for what he describes as a new ‘gold standard’ in data centre energy storage.
Higinbotham said: “The industry is witnessing a fundamental architectural shift driven by extreme power density. Traditional hyperscale infrastructure typically operates at low voltages, ranging from 12V to 48V, but as AI workloads intensify, the resulting current levels create unsustainable thermal loads. To manage these temperatures effectively, the industry roadmap is pivoting towards high-voltage systems, with 400V, 800Vand even 1500V architectures currently under consideration.
“This transition introduces unprecedented distribution challenges. Moving 800V+ throughout a facility to concentrated GPU clusters requires a complete rethink of safety and sustainability. This is where our Immediate Power platform becomes essential. Whether situated adjacent to GPU servers to absorb millisecond dynamic loads or deployed at the facility perimeter for load-levelling, nickel-zinc batteries provide a versatile buffer.”
Photo: fibre optic cables in a data centre © Shutterstock, Inc


