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Panasonic Energy aims to raise revenue from its energy storage systems business for data centers to 1 trillion yen in fiscal 2028, three times the 2025 level, with investments of 350 billion yen between 2026 and 2028. Growth is focused on lithium-ion battery-based BBU units, which provide backup power and reduce peak loads in AI data centers.
Michael Barnard argues that the ARES test in Nevada demonstrated the system’s ability to move massive loads, but also revealed the low density of stored energy relative to the amount of equipment required. The article contends that turning the concept into a 20-megawatt system operating for 20 hours would impose major construction and operational challenges when compared with pumped-hydro storage and batteries.