[Exclusive] Samsung SDI, Amazon in final talks for data center battery supply

Apr 28, 2026, 02:43 pm

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Samsung SDI Giheung campus / Samsung SDI

Samsung SDI is on the verge of securing a major battery supply agreement with Amazon for data centers, in a deal estimated to be worth up to 1 trillion won ($700 million–$1 billion), industry sources said on April 28.

According to multiple sources, negotiations between Samsung SDI and Amazon Web Services (AWS) for battery backup unit (BBU)-based uninterruptible power supply (UPS) systems have entered the final stage, with only pricing discussions remaining.

AWS, the world’s largest cloud service provider, operates hyperscale data centers globally. As generative AI adoption accelerates, the company has been ramping up investments to secure stable and efficient power infrastructure. The surge in high-performance computing demand has significantly increased power consumption and load variability, highlighting the importance of energy storage systems (ESS), including BBU and UPS solutions.

Industry experts say the potential partnership goes beyond simple component supply, as it directly ties into AI infrastructure competitiveness. Entering AWS’s supply chain could ensure stable mid- to long-term demand and elevate Samsung SDI’s position as a key provider of critical data center power systems.

Samsung SDI is positioning ESS and BBU businesses as core growth drivers amid slowing electric vehicle demand. Rising data center demand is helping offset the EV market slowdown, contributing to a more stable earnings structure.

“BBU and UPS systems carry high unit prices and often lead to long-term contracts, making them highly meaningful from a profitability standpoint,” an industry official said. “If the AWS deal materializes, it would not only boost earnings but also provide a strong reference with a global big tech client.”

The company reported first-quarter revenue of 3.5764 trillion won and an operating loss of 155.6 billion won, with losses narrowing by 64.2% year-over-year. Net profit turned positive at 56.1 billion won.

Growth in ESS orders and high-output BBU battery supply contracts drove earnings improvement. In the EV segment, Samsung SDI recently secured multi-year contracts with Mercedes-Benz, completing its client base among Germany’s top three automakers.

Market watchers expect that if the AWS contract is finalized, Samsung SDI’s earnings recovery could accelerate further, supported by stable large-scale demand and improved margins from high-value products.

A Samsung SDI official said, “Nothing has been finalized regarding the contract with AWS.”

#Samsung SDI #Amazon #AWS #BBU #UPS