Lithium-ion (Li-ion) batteries dominate both BESS and UPS applications due to their high energy density and efficiency. However, they are also more prone to thermal runaway—a chain reaction in which overheating can lead to fire or explosion.
A 2024 Data Center Dynamics opinion warns:
“Li-ion batteries are vulnerable to thermal runaways that, if left unchecked, can result in powerful fires… One data center may contain millions of Li-ion cells… fire department responses… are likely to increase in frequency until the hazards can be engineered out.”
This reality means that even a statistically rare single-cell failure can cascade into a high-impact safety event in facilities with massive battery arrays.
Incidents worldwide have underscored the importance of proactive safety planning. In January 2025, a fire at Vistra’s lithium-ion BESS facility in Moss Landing, California, forced evacuations, road closures, and a prolonged shutdown. Despite installed suppression systems, the blaze proved difficult to contain—a stark reminder of the potential scale of battery failures.
Public apprehension remains strong. In September 2023, Wired reported that communities like Raquette Lake, New York, have raised concerns over large-scale battery projects, citing both fire risks and limited emergency response capabilities in rural areas. While real-world incidents have led to safety design improvements, the reputational and operational risks persist.
The energy storage sector is growing at unprecedented speed. By Q3 2023, utility-scale capacity in the U.S. was seven times greater than at the end of 2020. This expansion is driven by both technological innovation and evolving safety regulations.
Operators are increasingly deploying advanced Battery Management Systems (BMS) to monitor temperature, voltage, and gas emissions in real time—critical steps in preventing thermal runaway. Many facilities are also experimenting with alternative chemistries such as zinc-ion batteries, which offer lower fire risk, better recyclability, and easier compliance with environmental standards.
Fire protection standards are also evolving. The National Fire Protection Association (NFPA) has updated its NFPA 855 guidelines for energy storage system installation, and some U.S. states are considering additional fire suppression and detection requirements for critical infrastructure.
To balance resilience and safety, data center operators should prioritize:
With the global data center market projected to grow more than 10% annually, the ability to integrate BESS and UPS safely will determine whether these facilities can meet the twin demands of uptime and sustainability without introducing unacceptable risk.
