The data center industry is in the midst of a power crisis, with operators scrambling to construct larger facilities to accommodate the increasing demands of AI buildouts. However, one potential solution to this dilemma lies in battery energy storage systems (BESS), which could pave the way for a sustainable future for data centers. These systems have the ability to store excess energy generated during peak production periods and release it during times of high demand, thereby helping to stabilize grid fluctuations and support decarbonization efforts.
Industry experts have identified three key advantages of BESS: sustainable power supply, enhanced resiliency, and reduced energy costs. Despite these benefits, the rapid deployment of BESS has brought to light significant operational challenges. Battery systems are susceptible to performance degradation and shorter lifespans due to extreme temperatures, humidity, and inadequate climate control.
To address these challenges, a new technology has emerged: immersion-cooled BESS. This innovative approach involves fully submerging battery cells in a dielectric fluid, which not only prevents fires but also extends the lifespan of the equipment and provides higher power density compared to traditional air-cooled alternatives.
Matthew Ward, president of EticaAG, highlighted the significance of this technology, stating, “We’re bringing what they’ve been doing in data centers for a number of years with immersion cooling to battery storage.” EticaAG is at the forefront of developing immersion-cooled BESS products specifically tailored for data centers, with plans to launch in 2026. The company already offers immersion-cooled products for utility-level, industrial, and residential applications.
One of the critical issues that immersion cooling addresses is thermal management. Uneven heating and cooling of battery cells can lead to rapid degradation and a shorter shelf life. By fully submerging the cells in dielectric fluid, immersion cooling ensures consistent thermal properties, allowing the batteries to operate more effectively and last longer.
Andrew Lichauer, director of engineering at EticaAG, emphasized the importance of fluid selection in ensuring the safety and reliability of the immersion-cooled system. Partnering with Shell, EticaAG conducts a thorough risk analysis to guarantee a high flash point and overall system reliability.
Beyond serving as backup power during outages, battery systems equipped with enhanced thermal management capabilities offer a wide range of benefits for data center operators. Alex Marshall, group director at Clarke Energy, highlighted the potential of immersion-cooled BESS to enhance the performance and safety of battery systems. While the technology is still in its early stages, its promise for reliable and safe high-power applications is significant.
Marshall explained that immersion-cooled BESS not only provides traditional advantages such as resilient power backup and grid support but also offers improved thermal efficiency that could reshape facility design. By reducing the need for large HVAC systems and enabling higher energy density, operators can deploy storage closer to critical loads and enhance overall site Power Usage Effectiveness (PUE).
Looking ahead, Marshall envisioned a future where immersion-cooled BESS could integrate with combined cooling, heat, and power (CCHP) systems, further enhancing the efficiency and sustainability of data centers. With these advancements in thermal management and energy storage technology, data centers are poised to navigate the power crisis and embrace a more sustainable future.
The industry’s transition from AC to DC power distribution makes immersion-cooled BESS particularly timely.
“With the transition from AC distribution to DC distribution, the major goal of the transition to DC is to get the magnetic elements out of the actual distribution itself,” Lichauer said.
Removing the magnetic and transformer elements is crucial for improving power density. Lichauer explained that emerging rack designs require up to one megawatt of power per rack, and operators will not be able to achieve that footprint with power system components directly in the rack.
Hallahan from CleanArc sees the flexibility of immersion-cooled BESS as transformative.
“Immersion-cooled BESS may open the door to more locations in and around the data center where the BESS systems can be deployed due to their ability to control equipment temperature and influence the fire suppression capability of the system,” Hallahan said.
He added that the characteristics of immersion-cooled BESS provide greater flexibility in the number of locations where the BESS systems can be deployed, as real estate can be at a premium due to the large volume of equipment required to support a data center.
Navigating Adoption Challenges
Despite clear technical advantages, immersion-cooled BESS faces significant obstacles to widespread adoption.
“Immersion-cooled BESS is definitely a supreme cooling technology. However, it comes with a premium cost [and] additional engineering complexities,” Arie Brish, a data center technology expert at St. Edwards University in Austin, Texas, told DCN.
“It might find its place in extremely high-performance niches, but the general rule is simplicity wins in most cases, especially when you talk relatively short term.”
Marshall from Clarke Energy acknowledges the maturity challenge but is optimistic about the future potential and what it will enable.
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