Panasonic Holdings plans to begin mass production of battery cells for data center applications in the United States by fiscal 2028, betting on surging demand from artificial intelligence infrastructure as technology companies expand computing capacity worldwide.
The Japanese electronics and battery manufacturer said production will take place at its facility in Kansas, extending its presence beyond electric vehicle batteries and into the rapidly growing market for energy storage systems used by data centers. The fiscal year runs through March 2029.
The move reflects a broader shift by battery manufacturers towards AI-related infrastructure as demand for power-intensive computing facilities accelerates. Data centers require increasingly sophisticated backup power systems to maintain operations during outages and manage fluctuations in electricity supply, creating a fast-growing market for battery storage providers.
Panasonic Energy Chief Executive Officer Kazuo Tadanobu said the company is targeting sales of ¥950 billion ($5.93 billion) from data center-related energy storage systems in fiscal 2028, describing the figure as a minimum commitment while indicating the business could eventually exceed ¥1 trillion ($6.24 billion) in annual revenue.
The initiative forms part of Panasonic’s broader strategy to capitalize on the global AI boom and reduce its reliance on the cyclical electric vehicle market. The company has faced pressure in its automotive battery business amid weaker demand growth, tariff-related costs and expenses associated with expanding manufacturing capacity in the United States.
Last month, Panasonic said it expects a significant rebound in profitability driven partly by AI-linked products and services. The company identified data center batteries as a major growth opportunity, alongside its traditional electric vehicle battery operations, which supply customers including Tesla.
Demand for backup power systems has risen sharply as technology companies race to build AI data centers capable of supporting increasingly complex models. Industry executives have warned that power infrastructure is emerging as one of the biggest constraints on AI expansion, creating opportunities for battery suppliers and energy storage companies.
Panasonic has already begun supplying battery products for data center applications in Japan and is now preparing to localize production in the United States. Locating manufacturing in Kansas would place production closer to major North American customers at a time when governments and corporations are seeking to strengthen domestic supply chains for critical technologies.
The announcement underscores how the AI investment boom is reshaping industrial strategies far beyond the technology sector, with companies ranging from chipmakers to power equipment manufacturers positioning themselves to benefit from the growing demand for computing infrastructure and the energy systems required to support it.
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Emmanuel Abara Benson is a business journalist and editor covering artificial intelligence, global markets, and emerging technology.
He has previously worked with Business Insider Africa and Nairametrics, reporting on finance, startups, and innovation.
His work focuses on AI, digital economy, and global tech trends.
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