Supercapacitors for Data Centers Set to Become US$950 Million Market

The market for supercapacitors for data center applications is set to grow to over US$950 million by 2037, representing a CAGR of 40.9% from 2026. This large growth rate is predominantly due to the recent emergence of this application, driven by growth in hyperscale AI data centers, across the world. Electric double-layer capacitors (EDLCs) are expected to represent the largest proportion of data center supercapacitor power supply, however in terms of market value, Li-ion hybrid capacitors will exceed EDLCs towards the end of the next decade, due to higher prices and larger deployments in terms of capacitance, according to IDTechEx's recent report "Supercapacitors for Data Centers 2027-2037: Technologies, Applications, Players and Forecasts."

 

 

AI is being increasingly deployed across many facets of daily life, as well as across a range of industries, requiring a large increase in the rate of construction of hyperscale data centers. However, training and utilizing AI requires a power demand profile that is far from smooth, generating large transient loads and short peaks in power demand. Spikes in power demand profiles associated with AI can be challenging for conventional power architecture to handle. Extreme power demand spikes lead to voltage sags, which in turn can lead to temporary shutting down of servers, equipment failures and grid-wide instability. Solving these issues can help to make AI data centers both more profitable and more palatable for neighbouring authorities and locations that might otherwise oppose development.

 

 

 

Supercapacitors, also known as ultracapacitors, include a range of technologies. Supercapacitors lie between capacitors and batteries in terms of electrochemical properties, utilizing surface charge storage like capacitors but with higher energy density. Generally, supercapacitors offer significantly higher power density than batteries but significantly lower energy density, making them well-suited to short-term, rapid power applications, with frequent charge-discharge cycles. IDTechEx identifies three broad categories of supercapacitors: electric double-layer capacitors (EDLCs), hybrid capacitors, and pseudocapacitors. EDLCs are the most commercially mature of the three technologies, operating via the same charge storage mechanisms as conventional capacitors but utilizing a double-layer design to increase storage capacity. Hybrid capacitors offer a middle ground between EDLCs and Li-ion batteries, utilizing both surface charge storage and bulk storage (e.g. via chemical redox reactions). The most common type of hybrid capacitor is the Li-ion capacitor, which utilizes the same rocking-chair principle as a Li-ion battery, as well as surface charge storage, like an EDLC. IDTechEx's recent report offers a detailed breakdown of the commercial viability of EDLCs, hybrid supercapacitors and pseudocapacitors in the context of data center applications.

 

 

 

 

 

Supercapacitors will be deployed in data centers for three primary applications: voltage stabilization, peak shaving and backup power. Through rapid charging and discharging, supercapacitors can provide power during large AI power demand surges, reducing strain on the grid and other power equipment. They can then be rapidly charged when the spike falls off, to provide power for the next spike. AI power spikes can be at ms- or s-scale and therefore require ms- or s-scale flexibility in power supply, which can be provided by supercapacitors. This smooths out the overall facility/rack's power demand, preventing voltage sags. It also allows for rapid smoothing out of large peaks in power demand, that might otherwise incur fees, as well as capturing excess power that might otherwise be lost or wasted through dummy compute calculations. Supercapacitors could also see deployment in backup power applications, especially at the rack-level. While supercapacitors cannot offer backup power for long periods (max. 2 mins for EDLCs and max. 10 mins for some types of hybrid supercapacitors), they could enable critical backup supply for short term outages, preventing data corruption or loss. Supercapacitors offer the potential to complement existing backup power systems, including UPS. This report from IDTechEx provides an in-depth assessment of supercapacitors' suitability for these various applications in data center power architectures, as well as optimization of supercapacitor placement within the data center facility.

 

 

 

There are many players in the supercapacitor space, a number of whom have already pivoted to target or try to target data center applications. The opportunity for supercapacitors in data centers is still emerging, with deployments currently at a low level, compared to the total addressable market. While it remains to be seen which players will first succeed, IDTechEx identifies several factors that mark viable strategies for supercapacitor players, including module design, system sizing and data center targeting.

 

In the new market report, "Supercapacitors for Data Centers 2027-2037: Technologies, Applications, Players and Forecasts", IDTechEx provides analysis of supercapacitors in data center applications including:

 

Market forecasts and analysis

 

Technology trends

 

 

Application market priorities and market dynamics

 

For more information on this report, including downloadable sample pages, please visit www.IDTechEx.com/SupercapDC, or for the full portfolio of related research available from IDTechEx, see www.IDTechEx.com/Research/ES.