AI data centers face a power management crisis that traditional lithium-ion batteries weren't designed to solve. As graphics processing units (GPUs) consume exponentially more electricity than conventional servers, and do so in unpredictable bursts, data center operators need backup power systems that can respond in seconds, not minutes. A battery chemistry most people have never heard of, nickel-zinc, is emerging as the answer.

ZincFive, a company that spent over a decade perfecting nickel-zinc battery technology for traffic light backup systems, is now pivoting to the far more lucrative AI data center market. The company has already deployed close to 2 gigawatts of battery backup cabinets globally and is preparing to go public with an initial public offering (IPO) targeted for September or October 2026, backed by a $100 million committed private investment in public equity (PIPE).

What Makes Nickel-Zinc Different From Lithium-Ion?

The fundamental difference comes down to how these batteries behave under stress. Lithium-ion batteries excel at storing large amounts of energy over long periods, making them ideal for electric vehicles and grid-scale energy storage. But they're not optimized for the specific demands of modern AI infrastructure. GPU servers don't need batteries that hold energy for hours; they need batteries that can deliver massive amounts of power almost instantaneously.

ZincFive's nickel-zinc chemistry can discharge at rates of 50 to 60 times its capacity in a single hour, meaning the battery can fully discharge in less than two minutes. This extreme discharge rate is critical because AI workloads create synchronized processing operations where compute racks can pulse up to 50 percent above their normal power draw every single second. These power spikes are not a problem to be solved; they're a feature of how modern AI systems operate.

"In the data center, the question isn't how many megawatt-hours of energy you can store. It's how much power you can deliver, and how quickly, when demand changes," said Todd Higinbotham, CEO of ZincFive.

Todd Higinbotham, CEO at ZincFive

The energy density of nickel-zinc batteries sits within 10 percent of comparable lithium iron phosphate cells, according to Higinbotham, so the chemistry isn't dramatically inferior in that regard. The real advantage emerges when you need a five-minute backup window. For that use case, a nickel-zinc system requires a much smaller physical footprint than lithium-ion would need to deliver the same peak power output.

How Are Data Centers Preparing for Next-Generation GPU Power Demands?

The AI industry is moving toward increasingly aggressive system architectures that will push power delivery to new extremes. Some industry leaders are already targeting 1 megawatt racks and 800 volt direct current (DC) architectures, which they hope to deploy within the next few years. These represent a significant jump from today's infrastructure and will require backup power systems designed from the ground up for these new specifications.

ZincFive launched its BC 2 AI battery storage cabinet in fall 2025, fitted with 90 ampere-hour nickel-zinc batteries designed for both AI and traditional information technology loads. But the company is already developing a successor, anticipating that the next two generations of graphics processing units from Nvidia and other manufacturers will demand even more power than current systems can provide.

• Current GPU Racks: Operate at lower power densities with conventional power distribution systems that have been industry standard for years.
• Next-Generation Targets: 1 megawatt racks using 800 volt DC architectures, expected to be deployed in two to three years according to ZincFive's CEO.
• Future Power Density: The next generation of GPU racks could be four to five times more power dense than today's systems, requiring entirely new backup power strategies.

Interestingly, solar inverter manufacturers who have already built 800 volt platforms are visiting ZincFive's Oregon headquarters to explore potential partnerships. This cross-pollination between renewable energy and data center infrastructure suggests that the industry is converging on common voltage standards that will benefit multiple sectors.

What's ZincFive's Path to Manufacturing and Market Dominance?

Currently, ZincFive manufactures battery components across two sites in China, including one wholly owned operation and a contract manufacturing partnership. The company also operates a 60,000 square foot battery cabinet assembly facility in Tualatin, Oregon, which became operational in May 2025. Using proceeds from its planned IPO, the company intends to build a US battery factory, with site selection and equipment specification already underway.

The goal is to onshore fundamental battery component manufacturing within roughly one year. This move will reduce tariff exposure for the business and qualify ZincFive for US manufacturing tax credits, making the company more competitive against international suppliers. Near-term targets include reducing the current uninterrupted power supply (UPS) footprint from three or four cabinets per megawatt down to two cabinets, and completing market testing of a dedicated pulsing product that can be sold as a standalone solution.

ZincFive also launched a retrofit kit in April that extracts batteries and battery management systems from standard cabinets and repackages them for brownfield replacement of aging lead-acid systems. This strategy opens up a massive installed base of data center UPS infrastructure that was previously locked into older technology. The approach is already bearing fruit, with a significant portion of the company's orders now coming as reorders from satisfied customers.

"The data center industry, much like solar, is big companies doing business with big companies. It's difficult to break into conservative supply chains with a new technology. But we've already deployed 2 gigawatts and we're becoming well-known," explained Todd Higinbotham.

Todd Higinbotham, CEO at ZincFive

The company's journey began in 2009 when co-founder Tim Hysell started exploring nickel-zinc chemistry as an alternative to lead-acid batteries. By 2012, ZincFive delivered its first full-scale UPS commercial product to the Department of Transportation in Sacramento. That early success in a niche market has positioned the company perfectly to capitalize on the explosive growth of AI infrastructure, where the specific advantages of nickel-zinc chemistry align perfectly with the industry's most pressing technical challenges.