The AI power crunch has sparked a new battery deal between utility-scale energy storage developer Energy Vault and Peak Energy, which manufactures sodium-ion energy battery storage systems. The partnership aims to build a battery platform specifically designed for 'AI-first' data center operators, addressing the growing demand for high-capacity energy storage systems that can handle sharp, unpredictable power spikes. By combining Peak Energy's sodium-ion technology with Energy Vault's system design and software controls, the companies are creating a dedicated storage architecture that can meet the unique demands of AI-driven compute loads.
The current battery energy storage systems (BESS) were primarily designed for steadier grid loads, but the rapid growth of AI is exposing limits in conventional power infrastructure. The new system will be exclusive to Energy Vault's modular 'powered shell' data center offering, providing simpler electrical design, less reliance on traditional uninterruptible power supply (UPS) systems, lower cooling requirements, and better handling of AI-driven load swings. This solution enables faster deployment, lower cost, and improved safety for data center operators.
Sodium-ion batteries offer higher safety and reliability compared to conventional lithium-ion BESS, making them an attractive option for data centers dealing with high-volatility compute loads. Energy Vault's chief revenue officer, Marco Terruzzin, stated that the rapid growth of AI is exposing limits in conventional power infrastructure, but 'this solution enables faster deployment, lower cost, and improved safety by combining Energy Vault's integration platform with Peak's sodium-ion technology.'
The partnership also includes a definitive supply agreement for 1.5 gigawatt-hours (GWh) of Peak Energy's US-manufactured sodium-ion battery systems, which will be integrated into Energy Vault's technology-agnostic energy management platform, Vault OS. By securing a domestic supply, Energy Vault says both its grid-scale battery storage and AI-focused infrastructure projects are expected to qualify for Domestic Content Investment Tax Credits (ITC).
Peak Energy CEO Landon Mossburg emphasized that lowering energy costs is critical to competing in the AI market, and sodium-ion offers a lower-cost, faster path to connecting data centers to the grid. The integration of Peak Energy's systems into Vault OS will manage the operating characteristics of the sodium-ion batteries, optimize dispatch, extend asset life, and maintain Energy Vault's operational control of the systems.
The growing demand for AI data centers is forcing developers to rethink generation and how they manage fast, unpredictable load swings. Sodium-ion has long been pitched as a safer and potentially lower-cost alternative to lithium-ion, especially where energy density isn't the top priority. However, lithium-ion dominates the storage market due to its massive scale, established supply chains, and deep project finance track records.
The real question is whether sodium-ion can prove itself at scale, not just technically, but economically, before lithium-ion continues to drive costs even lower. If Energy Vault and Peak Energy can demonstrate clear performance advantages under AI-style load volatility, that would be a real differentiator. Until then, this is a strategic bet, and not yet a market shift.
The partnership between Energy Vault and Peak Energy marks an important step towards addressing the growing demand for high-capacity energy storage systems that can handle sharp, unpredictable power spikes. By integrating sodium-ion technology with their system design and software controls, the companies are creating a dedicated storage architecture that can meet the unique demands of AI-driven compute loads.
As the AI market continues to evolve, it's essential for companies like Energy Vault and Peak Energy to innovate and adapt to the changing landscape. The success of this partnership will depend on their ability to demonstrate clear performance advantages under AI-style load volatility and to prove the economic viability of sodium-ion technology in the long term.
The integration of sodium-ion technology with Energy Vault's system design and software controls is expected to improve operational safety, speed up deployment, and lower upfront costs for data center operators dealing with high-volatility compute loads.
