Nextpower bought Prevalon Energy , a joint venture of Mitsubishi Power Americas and EES , for up to USD 365 million , a move that would mean entering the BESS market on a large scale and supplying AI data centers.
Prevalon already has more than 6 GWh of BESS systems deployed worldwide and 1.3 GW in firm contracts linked to AI data centers and hyperscaler infrastructure. Nextpower estimates that the global BESS market outside of China could reach USD 35 billion by 2030, of which USD 15 billion would correspond to the US.
“Many of our customers have rapidly expanded their storage programs and have asked us to extend the Nextpower platform to energy conversion and battery energy storage systems (BESS) to deliver fully integrated firm energy solutions,” said Dan Shugar , founder and CEO of Nextpower.
"Together with our recent acquisition of a power conversion company, which complements the previous one, we expect Prevalon's BESS platform to open up new market opportunities for Nextpower in AI-powered data center power delivery applications," he added.
With this purchase, Nextpower incorporates into its technology platform Prevalon's ' Hybrid Power Stabilizer ', a solution designed to manage sudden load variations and stabilize electrical networks in high computational demand environments, something key for new GPU-based data centers.
As a result of the transaction, Nextpower has revised its financial forecasts upwards for fiscal year 2027. It expects to achieve revenues of between USD 4 billion - 4.4 billion (compared to the previous USD 3.8 billion - 4.1 billion) and adjusted EBITDA of between USD 845 million - 930 million.
The background
The acquisition of Prevalon is another step the company is taking toward the utility-scale BESS market, as it is not its first foray into this sector. In fact, in 2017, the company, then known as Nextracker, partnered with flow battery manufacturer Avalon Battery to launch the NX Fusion and NX Fusion Plus models.