California-based Nextpower, best known as a supplier of tracking systems and electrical balance-of-plant to utility-scale solar, is moving into battery storage and AI data centre power supply with the acquisition of Prevalon Energy, a US-headquartered joint venture between Mitsubishi Power Americas and EES. The all-cash-and-stock deal, valued at up to $365 million, marks the company's most significant step yet beyond its core solar infrastructure business.
Prevalon has deployed over 6 GWh of BESS systems globally and holds 1.3 GW of firm supply contracts tied to AI and hyperscaler data centre infrastructure. Its product line centres on the HD5 DC and HD5 AC modular storage blocks, managed through its insightOS software platform, and includes a Hybrid Power Stabilizer designed to handle rapid load fluctuations and grid stability demands, with large hyperscaler clients already among its active base.
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"Prevalon's BESS hardware and software platform solves challenging problems for utility-connected and self-powered AI data centres, including inertia support, grid stabilisation, contingency management, and GPU AI workload smoothing," said Markus Wilhelm, CEO of Strata Energy, an early mover in utility-scale BESS with over a dozen projects delivered since 2018.
Strategic logic
Nextpower has spent over a decade in utility-scale solar racking and electrical balance-of-plant, and its customers are now building or procuring storage alongside generation. Several have asked the company to extend its platform accordingly. Dan Shugar, Nextpower's founder and CEO, notes that a separate power conversion acquisition announced earlier this month is designed to work in tandem with the Prevalon deal. "Together with our recently announced and complementary power conversion acquisition, we expect that Prevalon's BESS platform will open new market opportunities for Nextpower in AI data center power supply applications," he said.
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Nextpower has lifted its financial outlook on the back of the deal, expecting fiscal 2027 revenue of $4.0 billion to $4.4 billion, up from a previous range of $3.8 billion to $4.1 billion, with adjusted EBITDA of $845 million to $930 million. The company estimates global BESS demand outside China could reach $35 billion by 2030, with the US accounting for up to $15 billion of this figure.
The acquisition reflects a broader pattern of tracker and balance-of-plant suppliers repositioning as integrated energy technology companies, as project complexity grows and data centre loads reshape procurement dynamics. The transaction is expected to close in the second quarter of fiscal 2027, subject to regulatory approval. (TF)
