Artificial intelligence is not only fueling the demand for chips, GPUs, or liquid cooling systems. It is also significantly driving a less visible but increasingly important component within the electrical design of new racks: backup battery units, known as BBUs by their acronym in English. In this context, Taiwanese manufacturer DynaPack has decided to take action and prepare a very aggressive expansion of its production capacity.
According to DigiTimes, the company plans to add an additional 200% of BBU production capacity at its facilities in Taiwan and Thailand. Practically, this means tripling its current capacity to capitalize on a trend that no longer appears to be short-term but structural: the integration of backup batteries into the power architecture of AI-oriented data centers.
This move isn’t coming out of nowhere. DynaPack already indicated in its 2024 annual report that it aimed to become one of the main suppliers of batteries for BBUs and that it expected to expand capacity in Taiwan and Thailand. Furthermore, the company directly linked the growth of its BBU business with the rise of artificial intelligence and the construction of new data centers. In other words, the current expansion is not an unexpected turn, but rather a speeding up of an already planned strategy.
From Technical Add-on to Strategic Element of AI Racks
For years, the major energy debate in data centers revolved around traditional uninterruptible power supplies, generators, UPS units, and overall efficiency. However, the new generation of AI racks is forcing a rethinking of electrical distribution at a much finer level. It’s no longer just about surviving power outages but managing highly variable loads, extremely sharp consumption peaks, and density requirements that in some cases clearly surpass what was typical a few years ago.
This is where BBUs are gaining prominence. DynaPack already explained to investors in 2025 that the adoption of these solutions was accelerating among data center operators due to fears of data loss and the need for fast switching integrated protection within the rack itself. The company stated that its BBU-related revenue could double within the year, reaching about 1.5 billion Taiwanese dollars, with the non-IT business growing precisely because of this product family.
What’s notable is that this trend doesn’t depend solely on marketing messages from a single provider. NVIDIA, in 2025, disclosed technical details of its GB300 NVL72 platform, explaining that its new power supply design incorporates internal energy storage to smooth voltage oscillations within the rack. In its tests, the company claims to have reduced peak demand by around 30% during training sessions with models like Megatron LLM. It’s not exactly a traditional prolonged backup BBU, but it confirms a core idea: short-duration energy storage is already part of the new electrical language of large-scale AI systems.
The Energy Race Enters a New Phase
DynaPack’s expansion also makes more sense when viewed against the broader industrial context. The data center industry is beginning to accept that the bottleneck for AI isn’t just about acquiring GPUs or building more white rooms. Electrical supply, peak management, power conversion, high-density cabling, and energy resilience have become critical variables in the business.
In fact, Vertiv announced in May 2025 that it is preparing an 800 VDC solutions portfolio for 2026 aligned with NVIDIA’s roadmap for new AI data centers. The company argues that as racks surpass 300 kW, direct current architectures will enable reductions in copper, current, and thermal losses. It further confirms that this ecosystem will include backup systems compatible with DC. If this evolution solidifies, suppliers like DynaPack will not only sell batteries but will also step into a increasingly strategic part of critical infrastructure.
Moreover, DigiTimes reports that DynaPack is working on projects to develop BBUs compatible with HVDC systems, aiming for mass production starting around 2027. This indicates that the company doesn’t want to limit itself to current market demand but is positioning for the next wave of electrical design in data centers.
A Small Business Compared to Chips, but Growing in Importance
Compared to the semiconductor market, BBU business remains modest in volume and visibility. However, its strategic value is increasing because it addresses problems that grow alongside AI: stability, continuity, microcircuit protection, transient absorption, and better utilization of the data center’s energy budget.
For DynaPack, this shift also has a business angle. The manufacturer has been under pressure in more traditional markets, such as consumer-grade batteries for personal computing, where competition and margins are tighter. Its corporate documents already acknowledge that non-IT products—including BBUs for data centers—must gain weight to improve profitability and reduce dependence on the traditional laptop and consumer electronics markets.
Therefore, the decision to triple capacity does not seem to be a simple opportunistic increase in production. Rather, it reflects how the AI value chain is pulling suppliers that until recently were far from the spotlight. While the industry discusses GPUs, HBM memory, or liquid cooling, other players are finding their opportunity in the physical elements that support this growth.
If DynaPack’s projections come true, the message is clear: backup batteries will no longer be secondary components within AI data centers but will increasingly be integrated into rack architecture and the power supply ecosystem. This makes manufacturers like DynaPack a quite useful barometer for understanding the true direction of AI infrastructure.
Frequently Asked Questions
What is a BBU in a data center?
A BBU is a battery-backed backup unit that helps maintain power for specific systems during micro-cuts, transitions, or brief events, and can be integrated into the rack itself or the power architecture of the system.
Why are BBUs gaining importance in AI?
Because AI racks have very high power consumption and rapid peaks. BBUs and other short-duration energy storage solutions help stabilize these variations and improve infrastructure resilience.
What does it mean that DynaPack will add 200% capacity?
This means the company plans to add capacity equivalent to double its current level, which practically results in tripling its total production from previous levels.
Do BBUs replace traditional UPS systems in data centers?
Not necessarily. In many cases, they are complementary. UPS units remain key at the system level, while BBUs can provide backup and energy management closer to individual racks or specific loads.
via: 360marketupdates