Apr 8, 2026

Nickel-zinc batteries for resilient AI data centers

With discharges possible from within some tens of seconds to around five minutes, NiZn batteries are particularly great for use in hyperscale data centers or as starter batteries for combustion engines.
Source: Fraunhofer IZM | Volker Mai
Apr 8, 2026

With support from the Fraunhofer Institute for Reliability and Microintegration IZM, the start-up Zn2H2 is developing a new generation of nickel-zinc (NiZn) batteries specifically tailored to the requirements of modern AI data centers. The goal is to create a high-performance alternative to established lithium-ion batteries.

Power when it matters most

As artificial intelligence drives rapid growth in data center capacity, ensuring reliable power supply becomes increasingly critical. In the event of a power outage, uninterruptible power supply (UPS) systems must bridge the gap until backup generators take over.

NiZn batteries are particularly suited for this task, delivering high power within seconds and covering short discharge periods ranging from seconds to several minutes.

A promising alternative to lithium-ion

Lithium-ion batteries are currently the standard for such applications, but they come with drawbacks including weight, cost, and potential safety risks. Nickel-zinc technology offers a compelling alternative, with lower weight, reduced costs, and improved raw material availability. Although the underlying chemistry has been known for over a century, previous limitations in manufacturing and cycle life have hindered widespread adoption.

Innovative manufacturing approach

A key innovation lies in a new direct coating process for nickel hydroxide electrodes. This approach enables efficient production of large-area electrodes that can be wound similarly to cylindrical lithium-ion cells. Combined with a highly conductive electrolyte, this results in faster charging and discharging as well as improved overall performance.

High performance and broad potential

Tests conducted at Fraunhofer IZM demonstrate strong performance, including discharge rates of several hundred C and power densities exceeding 10,000 W/kg over up to 20,000 cycles. Beyond data centers, the technology also shows promise for applications such as automotive starter batteries and other use cases requiring high power over short periods.

This collaboration highlights how joint efforts between research institutions and start-ups can accelerate innovation and bring advanced energy storage solutions closer to market readiness.

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