Samsung SDI, Samsung’s battery manufacturing business, has been supplying batteries to many major companies around the world, with most of its clients being automotive brands that use them for electric vehicles. Now, the South Korean tech giant may begin supplying batteries to another major brand—this time not an automaker, but tech giant Amazon—further strengthening Samsung’s position and credibility in the global tech market.
According to Asia Today, Samsung SDI and Amazon have been in talks for a deal under which Samsung SDI would supply batteries for battery backup unit (BBU)-based uninterruptible power supply (UPS) systems used in Amazon Web Services (AWS) data centres. The report adds that negotiations have now reached the final stage, with only pricing left to be finalized. Reportedly, the deal could be worth between $700 million and $1 billion.
As demand for artificial intelligence (AI) continues to rise, major tech companies around the world, including Amazon, have been ramping up investments in the segment. This includes procuring AI-processing hardware and strengthening the power infrastructure of their data centres, as AI servers consume significantly more power than conventional servers.
To support this growing demand, companies have also been investing heavily in energy storage systems (ESS). Samsung SDI is already supplying ESS batteries to Tesla, proving that its battery technology is well-suited for such applications. If Amazon joins that list, it would further strengthen Samsung’s position in the global market for ESS batteries used in data centres and AI infrastructure.
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