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Battery startup ZincFive has closed a $30 million Series F round to meet a backlog of orders and develop more AI data center products, CEO Tod Higinbotham tells Axios Pro.

Why it matters: Data center developers are interested in specialized backup batteries as a way to manage spiky AI training loads and lower costs. 

How it works: ZincFive makes a nickel zinc battery that can charge and discharge more quickly and is less flammable than lithium-ion batteries. 

The nickel zinc battery can provide backup power for a data center at a lower cost than lithium ion batteries if used in short bursts of seconds and even milliseconds. For a longer duration, like hours, nickel zinc batteries are more expensive than lithium ion. 

The rapid charge and discharge of nickel zinc is also advantageous to absorb the volatile energy load that an AI energy data center uses for training, says Higinbotham.

Data centers use backup power to maintain highly reliable operations in case there are fluctuations on the grid. 

Zoom in: The insider round included Helios Climate Ventures, Climate Investment, Japan Energy Fund, General Ventures, and Clear Creek Investments.

ZincFive has now raised $254 million since it was founded in 2016, born out of a merger between battery startup PowerGenix and backup power company Ensite Power.

Follow the money: Higinbotham says ZincFive has generated $60 million in annual revenue so far in 2025 and has an order backlog for next year of over $100 million. 

The company says it has close to 2 GW of deployed and contracted backup battery projects for data centers. 

The big picture: Data centers built for AI are adopting next-gen gear for the new power needs and cooling requirements of AI training, including new liquid-cooling systems, solid-state transformers and alternative backup batteries. 

"Specialty batteries are becoming more prominent," says Higinbotham. 

McKinsey estimates that $7 trillion will be spent on data center infrastructure through 2030, including on servers, electrical and mechanical equipment, power generation and labor.

What's next: ZincFive expects to start making a portion of its batteries in Oregon next year.

The company plans to use the financing to expand its manufacturing from China to Oregon to lower tariff and shipping costs, reduce complex supply chains and take advantage of tax credits.

Exclusive: ZincFive raises $30M for data center batteries

Developers see specialized backup batteries as a way to manage spiky AI training loads.

Rows of black ZincFive battery energy storage units neatly arranged indoors, showing company logo and ventilation fans on each unit.

Cabinets filled with nickel zinc batteries made by ZincFive. Photo: Courtesy of ZincFive

Battery startup ZincFive has closed a $30 million Series F round to meet a backlog of orders and develop more AI data center products, CEO Tod Higinbotham tells Axios Pro.Why it matters: Data center developers are interested in specialized backup batteries as a way to manage spiky AI training loads and lower costs.

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Exclusive: ZincFive raises $30M for data center batteries

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