Panasonic (TYO:6752) is turning to data center infrastructure as its next growth engine, converting part of its electric vehicle battery production to energy storage systems for AI-driven facilities, Nikkei reported Friday.

The company is capitalizing on rising power demand from data centers, supplying rack-mounted storage systems that support operations during outages and peak usage. Sales in the segment reached nearly 200 billion yen in the year ended March 2025, according to the report.

To meet demand, Panasonic plans to expand capacity by repurposing EV battery lines in Japan and is targeting 800 billion yen in sales by the year ending March 2029, as it shifts away from a slowing EV market, the report said.

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