This report focuses on Northern Virginia's “data center array,” which is home to large facilities that support much of the U.S. AI industry.
These data centers consume power the size of a small city and require uninterrupted power supplies.
To prevent power outages and system failures, operators rely on large lithium-ion battery systems, an area dominated by China.
Engineers warn that even small voltage fluctuations can disrupt AI workloads, increasing reliance on battery backup for power stabilization.
Dan Wang, a China technology expert at Stanford University's Hoover Institution, said China leads “in almost every industrial component,” both in terms of technology and scale.
Concerns extend to the military as well. U.S. defense officials have warned that modern warfare, increasingly shaped by drones, electronic systems and directed energy weapons, is becoming reliant on batteries.
The U.S. weapons program relies on the Chinese supply chain for about 6,000 battery-related components, according to defense analysis firm Gobini. Gobini CEO Tara Murphy-Doherty said every U.S. weapons platform has foreign components.
China has shown recognition of this influence. In October, the Chinese government threatened to restrict exports of advanced lithium-ion battery technology, including key components, as trade tensions escalate.
China already has a monopoly on battery cell production and lithium and graphite refining, strengthening its strategic position within global supply chains.
