Samsung SDI to Supply 1GWh of Storage for AI Centers
The company will produce high-density battery units in Indiana to meet the power demands of regional data center growth.
Updated on Oct. 26, 2026 in Data Centers
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Samsung SDI has signed a new contract to supply 1GWh of energy storage system solutions to Alpha Omega Power, bringing their total supply volume to 1.5GWh. This announced deployment utilizes the new Samsung Battery Box 1.7, which is slated for production in Indiana.
Why it matters
The deal targets the rapid expansion of North American AI data center infrastructure, which requires high-density storage solutions to maintain power stability. It marks a significant capacity increase for regional energy projects reliant on localized hardware manufacturing.
The Samsung Battery Box 1.7 provides a 17% higher energy density compared to its predecessor, the 1.5 model, using prismatic ternary NCA batteries. It incorporates AI-based algorithms designed for pre-failure diagnostics and lifespan prediction.
The players
Samsung SDI
A manufacturer specializing in lithium-ion battery technology and integrated energy storage systems for grid and industrial scale.
Alpha Omega Power
An energy infrastructure company focused on deploying grid-scale battery solutions for commercial and industrial markets.
Star Plus Energy
A manufacturing facility located in Indiana responsible for producing integrated energy storage products.
The details
The Samsung Battery Box 1.7 is a 20-foot integrated unit containing prismatic ternary NCA cells—lithium-ion batteries using nickel, cobalt, and aluminum oxides to maximize charge storage. These high-nickel materials enable the higher density needed for the rigorous power demands of AI computing. Samsung SDI integrates AI-based software that monitors internal performance metrics to predict component failures and estimate the remaining lifespan of the system.
Timeline
2025: Samsung SDI signed the initial supply contract with Alpha Omega Power.
October 26, 2026: The company officially announced the new 1GWh agreement.
2026: Production of the SBB 1.7 begins at the Indiana factory.
2027: Alpha Omega Power scheduled to launch the energy project in Texas.
The Tech Race
This agreement accelerates the domestic supply chain for energy storage as manufacturers compete to support the power-intensive growth of AI data centers. It mirrors broader efforts to localize production of high-density battery systems within the United States to meet escalating grid demands.
Alpha Omega Power intends to deploy these battery systems in a Texas project starting in 2027 to bolster local power reliability. The hardware will be manufactured in Indiana throughout 2026, marking a shift toward domestic assembly for regional power-hungry facilities.
The takeaway
The trajectory of AI infrastructure remains tethered to the availability of high-density energy storage units that can handle rapid, high-load power cycles. Watch for the 2027 commencement of the Texas project to determine if the SBB 1.7 performance meets projected lifespan and failure-prediction benchmarks.
Further reading
Learn more about the latest infrastructure developments in Data Centers.
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