Often, even the smallest news items can reveal significant underlying trends. A recent example is Google’s announcement that it has installed 100 million lithium-ion cells in its data centers to provide backup power for its servers. While this may not seem groundbreaking at first glance, it highlights a broader shift occurring globally: the pervasive use of batteries, fueled by the ongoing drive to reduce costs for electric vehicles, is transforming various sectors of the economy.
In the past, Google’s data centers relied on lead-acid battery backup systems, which, although dependable, were bulky, heavy, and less efficient. With the transition to lithium-ion cells, Google has experienced numerous advantages. The new cells offer double the power while occupying half the space of the older lead-acid units, allowing the company to reduce the number of cells needed by 75%. This efficiency means that Google can fit more servers—its revenue-generating assets—into the same footprint, as batteries serve more as a necessary backup than a profit center. Given the high cost of constructing data centers—around $125 per square foot, according to developer JLL—every inch of space is crucial.
The trend of batteries as disruptors is evident in other areas as well. Homeowners are installing large multi-kilowatt batteries to store surplus solar energy and maintain power during outages. Campers are opting for portable battery packs instead of noisy and polluting generators. Additionally, one startup is utilizing small battery cells to replace dry ice in shipping medical specimens, offering better temperature control and valuable tracking data.
Should we be impressed by Google’s installation of 100 million lithium-ion cells since 2015? Context matters: Panasonic has shipped over 10 billion cells from its Nevada facility during the same period. However, this comparison may overlook the broader implications of battery technology. Even Google’s seemingly modest figures illustrate how batteries are subtly disrupting various industries in unexpected ways.
