Nextpower Prevalon acquisition expands BESS

Nextpower is expanding its reach beyond solar power through the acquisition of battery energy storage specialist Prevalon Energy, a move that will enhance its presence in the rapidly growing markets for energy storage and AI data center infrastructure. The company anticipates that this acquisition will not only strengthen its position but also improve its financial performance for fiscal year 2027.

For readers of eeNews Europe, this announcement underscores the increasing intersection of renewable energy, battery storage, intelligent power management, and AI infrastructure. It reflects the rising need for resilient power systems that can support energy-intensive data center operations while contributing to the stability of electricity grids.

Establishing a Comprehensive Energy Platform

Headquartered in Fremont, California, Nextpower has entered into a definitive agreement to purchase Prevalon Energy, a joint venture based in the US between Mitsubishi Power Americas and EES, for a sum of up to $365 million in cash and stock. The completion of this transaction is subject to regulatory approvals and standard closing conditions.

This acquisition will broaden Nextpower’s technological offerings to include battery energy storage systems (BESS), energy management software, and intelligent controls for critical power infrastructure. The company estimates that the global market potential for BESS, excluding China, could reach $35 billion by 2030, with the US accounting for up to $15 billion of this total.

Prevalon brings substantial expertise to the table, having deployed over 6 GWh of battery storage systems worldwide and secured 1.3 GW of firm supply contracts to support AI and hyperscale data center initiatives.

Targeting Growth in AI Data Centers

One of the primary motivations behind this acquisition is the escalating demand for dependable power solutions in AI infrastructure. Prevalon’s technology is tailored to meet the needs of applications that require high power quality, swift response times, and rapid deployment, such as AI data centers, private grids, industrial facilities, and large-scale storage projects.

“Many of our clients have significantly expanded their storage initiatives and have requested that we expand Nextpower’s platform into power conversion and BESS to provide fully integrated firm power solutions,” stated Dan Shugar, the founder and CEO of Nextpower. “We anticipate that Prevalon’s BESS platform, in conjunction with our recently announced power conversion acquisition, will unlock new market opportunities for Nextpower in the realm of AI data center power supply applications.”

Among Prevalon’s offerings is the Hybrid Power Stabilizer, which is designed to manage sudden load fluctuations and uphold grid stability. The company also provides its HD5 energy storage products and insightOS software platform for monitoring, diagnostics, and long-term system management.

Enhanced Financial Projections

If the acquisition is successfully finalized, Nextpower has revised its revenue forecast for fiscal 2027 to fall within the range of $4.0 billion to $4.4 billion, up from the previous estimate of $3.8 billion to $4.1 billion. The adjusted EBITDA guidance has also been raised to between $845 million and $930 million.

The anticipated closure of this deal in the second quarter of fiscal year 2027 marks another milestone in Nextpower’s strategic plan to develop an integrated energy technology platform that encompasses power generation, storage, conversion, automation, and software.

Image: Prevalon Energy