KULR Targets AI Data Centers with $100M Battery Backup Deal

HOUSTON, TX – December 17, 2025 – KULR Technology Group, Inc. (NYSE American: KULR) is making a strategic push into the booming artificial intelligence sector, announcing a joint development collaboration to create a next-generation battery backup system for AI-scale data centers. The partnership, forged with an unnamed leading global battery-cell manufacturer, aims to develop the KULR ONE® MAX Battery Backup Unit (BBU) product line, targeting a commercial opportunity the company projects could be worth up to $100 million.

This move positions KULR, a company with deep roots in providing high-performance energy systems for space and defense, at the heart of one of the tech industry’s most pressing challenges: safely and reliably powering the AI revolution. KULR will lead the design, development, and safety certification for a new BBU architecture built around an ultra-high-power 21700 cell platform.

“AI-scale computing is fundamentally reshaping how data centers think about power, safety and reliability,” said Michael Mo, Chief Executive Officer of KULR Technology Group, in a statement. “As compute density and energy intensity continue to rise, we see a clear opportunity to deliver scalable, certifiable battery infrastructure that meets where the industry is headed.”

The Insatiable Power Demands of AI

The explosive growth of AI has created an unprecedented hunger for electricity and a corresponding need for robust power infrastructure. While traditional data center racks typically consume between 10 and 15 kilowatts (kW) of power, racks loaded with modern AI accelerators can demand anywhere from 80 to 150 kW, with future designs expected to push well beyond 200 kW. This dramatic increase in power density creates immense thermal challenges and places extraordinary strain on power delivery and backup systems.

For the hyperscale operators running these facilities, reliability is paramount. Many aim for "seven nines" reliability, or 99.99999% uptime, as even moments of downtime can result in millions in lost revenue, data corruption, and significant reputational damage. This makes resilient Battery Backup Units not just a safeguard, but a core component of business continuity.

Compounding the issue are grid-level constraints. The demand for electricity from data centers is projected to soar, potentially accounting for 12% of total U.S. consumption by 2028. However, securing new power connections from utilities can involve delays of three to seven years, forcing data center operators to rely more heavily on sophisticated on-site power generation and storage solutions. KULR's initiative directly targets this critical gap, promising a BBU engineered to meet the specific, high-current demands of modern AI hardware, including the Meta Open Compute Project (OCP) ORV3 standard and NVIDIA's GPU roadmap for 800 HVDC requirements.

Space-Grade Safety for Terrestrial Servers

To tackle the safety risks associated with high-density lithium-ion batteries, KULR is leveraging a portfolio of thermal management technology originally proven in some of the most demanding environments imaginable. The company’s core intellectual property includes its Thermal Runaway Shield (TRS), a passive propagation-resistant solution that has been tested and utilized by NASA to safely store and transport batteries aboard the International Space Station.

The TRS technology uses a unique carbon fiber material to draw intense heat away from a failing battery cell and prevent a cascading failure, known as thermal runaway, from spreading to adjacent cells. This expertise in propagation resistance is central to the design of the new KULR ONE® MAX BBU. The company will spearhead all certification activities for the system under UL 9540 and UL 9540A, the key industry safety standards for energy storage systems and thermal runaway fire propagation, respectively. By adapting its proven "space-grade" safety principles to the data center floor, KULR aims to provide a level of reliability and risk mitigation that is becoming essential for densely packed, high-power AI infrastructure.

A Strategic Alliance and Competitive Edge

The collaboration with a major, albeit undisclosed, battery-cell manufacturer is a crucial element of KULR's strategy. This partnership goes beyond co-development; upon successful UL certification, the partner has committed to a long-term supply of its ultra-high-power 21700 cells for the BBU product line. This agreement is designed to give KULR a predictable, cost-controlled, and scalable supply chain, de-risking the transition from development to commercial production.

While the data center power solutions market includes established giants like Vertiv, Eaton, and Schneider Electric, KULR is carving out a niche focused on the extreme requirements of AI workloads. Its competitive advantage lies in its specialized expertise in thermal management and battery safety for high-energy lithium-ion systems. By focusing on the specific standards set by industry leaders like Meta and NVIDIA, KULR is positioning itself not as a general-purpose power supplier, but as a specialist provider for the most advanced and demanding segment of the data center market.

The Bitcoin Factor: An Unconventional Treasury Strategy

Underpinning KULR’s technological ambitions is a distinct and modern financial strategy. In late 2024, the company adopted a "Bitcoin+ Treasury" model, committing to allocate up to 90% of its excess cash to acquiring bitcoin. This aggressive move into digital assets has rapidly transformed its balance sheet. The company reported its holdings grew to approximately $101 million in bitcoin by mid-2025, and it uses "BTC Yield" as a key performance indicator to track its digital asset strategy.

This approach places KULR among a small but growing cohort of public companies, including MicroStrategy and Semler Scientific, that view bitcoin as a primary treasury reserve asset to hedge against inflation and diversify holdings. While the strategy introduces exposure to the inherent volatility of cryptocurrency markets, the company presents it as a financial engine separate from its core operational performance. This unconventional treasury management provides a fascinating backdrop to KULR's expansion, potentially offering capital flexibility as it invests in long-term, high-stakes technology ventures like the AI data center BBU. This venture places KULR at the intersection of advanced energy systems, critical infrastructure safety, and innovative corporate finance, a complex but potentially rewarding position as the AI revolution accelerates.