Panasonic Energy plans to expand its data center power systems business, benefiting from increased electricity demand resulting from the operation of graphics processing units in AI data centers. The company aims to raise revenue from this business to approximately 1 trillion yen in fiscal 2028, compared with a level equivalent to three times fiscal 2025 revenue, according to an interview MONOist conducted with the company’s CEO on September 10, 2026.
Panasonic Energy is reorganizing its business around two main pillars: providing integrated solutions and deepening cooperation with customers. As part of this approach, the company wants to establish itself as a provider of energy solutions for data centers, rather than merely a manufacturer of battery cells.
Why Does This News Matter?
AI data centers require large amounts of electricity over short periods because of the nature of GPU loads. This increases demand for power during peak periods and makes it more difficult to maintain a stable electricity supply. Therefore, the value of storage systems in these facilities is not limited to serving as backup during power outages; they can also help reduce peak consumption and improve operational resilience.
BBU Units Instead of Relying Solely on Conventional Solutions
Panasonic Energy is focusing on Battery Backup Unit (BBU) units, which are lithium-ion battery-based backup storage units installed within a modular structure. These units provide backup power when the supply is interrupted and also offer a function for reducing imbalance during periods of peak electricity demand.
According to the article, the company believes that combining cells, systems, and control functions in a single solution gives it an opportunity to differentiate itself in the data center market. It also indicates that the units’ design takes safety requirements and various functions into account without limiting the product to a single fixed model, allowing it to be adapted to customers’ needs.
Investments and Operational Targets
Panasonic Energy plans to invest 350 billion yen between 2026 and 2028 to support the growth of its data center business. The company has also set a target of achieving a return on investment exceeding 20%, in addition to securing capacity exceeding 20 gigawatt-hours under its plans related to this business.
The company says its expansion is based on experience spanning battery cell manufacturing, system development and installation, as well as direct work with customers to design solutions. In practical terms, this means competition in this market will not revolve solely around battery capacity, but also around safety, reliability, load management, and a supplier’s ability to provide an integrated solution.
What Has Not Yet Been Decided?
The announced targets reveal considerable ambition, but the article does not provide details about contracts, the locations of manufacturing facilities, or the timeline for achieving each stage of the expansion. The success of BBU units will also depend on the requirements of each data center and the company’s ability to translate its battery expertise into large-scale operational systems. Therefore, the revenue and investment figures remain announced strategic targets, not results achieved to date.