Powering the AI Boom: How Nickel-Zinc Batteries Are Solving a Critical Infrastructure Crisis

TUALATIN, OR – December 04, 2025 – The artificial intelligence revolution, for all its digital marvels, runs on a very physical foundation: electricity. As AI models grow exponentially more complex, a critical bottleneck is emerging not in silicon, but in the power infrastructure required to support it. Addressing this challenge head-on, ZincFive, Inc., an Oregon-based innovator in battery technology, has just closed an oversubscribed $30 million Series F funding round, signaling strong investor confidence in its unique solution to this burgeoning energy crisis.

This latest infusion brings ZincFive's total capital raised to an impressive $254 million. The funds are earmarked to scale manufacturing and commercial operations to meet accelerating demand from the world's largest data center operators. While funding rounds are common in the tech sector, this one highlights a pivotal shift in the industry: the infrastructure powering AI is just as innovative, and as crucial, as the algorithms themselves.

The AI Power Bottleneck

The explosive growth of generative AI has created an insatiable appetite for computational power, leading to a direct and staggering increase in electricity consumption. According to the International Energy Agency, global electricity demand from data centers, AI, and cryptocurrencies could double by 2026, potentially consuming over 1,000 terawatt-hours—an amount comparable to the entire electricity consumption of Japan.

This surge is driven by the move from traditional CPUs to power-hungry GPUs and other AI accelerators, which can consume 5 to 10 times more power per rack. This creates immense strain on data center power systems, from the grid connection down to the uninterruptible power supply (UPS) systems that ensure continuous operation. For mission-critical AI applications, where even a millisecond of downtime can be catastrophic, reliable backup power is non-negotiable.

"The AI infrastructure buildout represents one of the largest technology investment cycles in history, and power systems are emerging as a critical bottleneck," noted Hannah-Mei Andrews, Investment Director at Climate Investment (CI), one of ZincFive's key backers. The problem isn't just about supplying more power; it's about delivering it safely, efficiently, and sustainably within the physical and thermal constraints of a modern data center.

A Safer, Greener Alternative to the Status Quo

For decades, data centers have relied on two primary battery chemistries for their UPS systems: lead-acid and lithium-ion. Lead-acid batteries, while inexpensive, are heavy, have a low power density, a short lifespan, and contain toxic materials, making them an environmental liability. Lithium-ion batteries offer much higher power density and a longer life, but they come with their own well-documented challenges, most notably the risk of thermal runaway—a dangerous chain reaction that can lead to fire and requires costly, complex safety and fire suppression systems.

Enter nickel-zinc (NiZn). The chemistry, first patented by Thomas Edison, has historically been limited by a short cycle life. ZincFive claims to have solved this core issue, unlocking the chemistry's inherent advantages for high-demand applications. The company's patented NiZn batteries offer power density on par with or superior to lithium-ion, but with a fundamentally different safety profile. They are non-flammable and do not exhibit thermal runaway, eliminating a major risk factor for data center operators packing more and more power into tight spaces.

Beyond safety, the environmental credentials are a significant differentiator. ZincFive's batteries are 96% recyclable and have a demonstrably lower end-to-end climate impact compared to their competitors. In an era of intense ESG scrutiny, providing a 'green' power solution for the energy-intensive AI industry is a powerful value proposition, attracting climate-focused investors like Helios Climate Ventures and Japan Energy Fund.

From Niche to Necessity: A Story of Commercial Validation

With $254 million in the bank and a roster of climate and industrial investors, ZincFive has clearly moved beyond the technology validation stage. The company is now in a phase of aggressive commercial scaling, a transition underscored by a critical metric: nearly 2 gigawatts of its NiZn battery cabinets are already deployed or contracted across the global data center industry.

This figure indicates that the world's leading hyperscalers and colocation providers are not just testing the technology but are making significant, large-scale commitments. "We’ve moved beyond proving our technology – we’re scaling to meet contracted demand from the world’s leading hyperscalers and data center operators," said Tod Higinbotham, CEO of ZincFive. "This investment accelerates our commercial and manufacturing expansion and strengthens our ability to deliver on the significant commitments our customers have made."

Further evidence of this targeted strategy is the recent launch of the BC 2 AI, a UPS battery cabinet specifically engineered for the dynamic power loads of AI clusters. This product-market fit demonstrates a deep understanding of the unique challenges posed by AI hardware and a commitment to providing tailored, rather than one-size-fits-all, solutions. By securing its place in the supply chain through strategic OEM relationships and direct engagement with major operators, ZincFive is embedding its technology into the foundational infrastructure of the next digital age.

The journey from a niche chemical innovation to a necessary component of the AI revolution illustrates a core principle of modern business: the most significant disruptions often happen in the enabling layers of technology. As the AI boom continues to accelerate, the companies providing the picks and shovels—or in this case, the batteries—are proving to be some of the most strategic and valuable players in the entire ecosystem.