Nextpower is making its most aggressive move yet beyond its traditional solar infrastructure roots, entering the battery energy storage system (BESS) and AI data center power markets through a deal to acquire Prevalon Energy for up to $365 million. The acquisition expands the company’s technology footprint into energy storage, intelligent controls, and power management systems that increasingly sit at the center of AI infrastructure planning. As hyperscale operators race to secure reliable power, energy storage has become a strategic asset rather than a supporting technology. The deal positions Nextpower to compete across a larger portion of the power infrastructure stack.
The transaction follows a series of adjacent-market expansions undertaken by the company since its public listing three years ago. Nextpower said it has entered into a definitive agreement to acquire the U.S.-headquartered energy storage specialist, which currently operates as a joint venture between Mitsubishi Power Americas and EES. The company expects the acquisition to strengthen its presence in critical power infrastructure markets while adding new capabilities around battery storage and power conversion. Management expects the transaction to close during the second quarter of fiscal year 2027.
Nextpower Expands Beyond Solar Infrastructure
The acquisition reflects a broader shift occurring across the power industry as developers seek integrated solutions rather than standalone hardware. Nextpower’s existing platform already spans structural systems, electrical infrastructure, power conversion technologies, automation platforms, controls, software, and energy storage-related capabilities. Adding Prevalon extends that platform into utility-scale battery systems and advanced energy management applications. The company believes customers increasingly want a single provider capable of delivering end-to-end power solutions.
The move also follows another recent acquisition focused on power conversion technology used to store and dispatch electricity efficiently. Together, those investments create a more comprehensive portfolio aimed at addressing growing demand for resilient power systems. AI data centers, industrial facilities, and grid operators all face mounting pressure to improve power reliability while managing increasingly complex energy loads. Nextpower is positioning itself at the intersection of those requirements.
The rise of AI infrastructure has transformed conversations around power availability and grid stability. Large-scale AI clusters can generate rapid load fluctuations that challenge conventional power systems and create operational risks for both utilities and facility operators. Battery storage platforms offer a mechanism to smooth those fluctuations while maintaining power quality and system resilience. As a result, storage technology is becoming a critical component of next-generation data center design.
Prevalon brings technologies specifically designed for environments where deployment speed, rapid response, and power quality remain essential. Its portfolio serves AI data centers, private power networks, industrial power systems, and grid-connected storage deployments. The company’s Hybrid Power Stabilizer is built to manage sudden load changes while supporting broader grid stability objectives. Its HD5™ DC block and HD5™ AC block platforms provide modular storage infrastructure supported by the company’s insightOS monitoring, diagnostics, and control platform.
Targeting a Growing Global BESS Opportunity
Nextpower sees battery storage as one of the largest growth opportunities within the energy transition landscape. The company estimates that global BESS demand outside China could represent a market opportunity worth as much as $35 billion by 2030. Within that figure, the United States alone could account for up to $15 billion in demand. Those projections are driving increased investment across the storage ecosystem as operators seek technologies capable of supporting both renewable energy integration and large-scale digital infrastructure.
The acquisition gives Nextpower direct access to a segment that has gained momentum as utilities and enterprise customers deploy more storage capacity. Market demand has expanded beyond renewable energy balancing and now includes applications tied to AI computing, industrial resilience, and private power networks. Storage systems increasingly serve as strategic infrastructure assets rather than simple backup resources. That shift creates a larger addressable market for integrated providers.
In connection with the transaction, Nextpower raised its fiscal 2027 guidance, assuming successful completion of the acquisition. The company now expects revenue between approximately $4.0 billion and $4.4 billion. Its previous outlook projected revenue in the range of $3.8 billion to $4.1 billion. The revised forecast reflects management’s confidence in the contribution expected from expanded storage and power infrastructure operations.
The company also increased its adjusted EBITDA outlook. Nextpower now projects adjusted EBITDA of approximately $845 million to $930 million, compared with its earlier forecast of $825 million to $900 million. The updated guidance signals management’s expectation that the acquisition will contribute both revenue growth and operating leverage. Investors will likely evaluate whether the expanded platform can accelerate long-term profitability as AI-related power demand continues to grow.
Executives See Strategic Advantage in Storage
Industry veterans involved in the transaction describe the combination as a natural fit. Strata Energy founder and CEO Markus Wilhelm highlighted Prevalon’s experience delivering utility-scale storage projects and its relevance to emerging AI infrastructure requirements. “Prevalon was the perfect choice for Nextpower to expand into BESS,” said Markus Wilhelm, founder and CEO of Strata Energy.
“Both companies are technology-focused and understand power, utilities, and complex use cases for customers. Prevalon’s BESS hardware and software platform solves challenging problems for utility-connected and self-powered AI data centers, including inertia support, grid stabilization, contingency management, and GPU AI workload smoothing. This is a differentiated, competitive advantage that Nextpower’s customers will value.”
Nextpower founder and CEO Dan Shugar emphasized customer demand as a major driver behind the acquisition strategy. “Many of our customers have rapidly expanded their storage programs and asked us to extend Nextpower’s platform into power conversion and BESS to deliver fully integrated firm power solutions,” said Dan Shugar, founder and CEO of Nextpower.
“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. Prevalon is already engaged with large hyperscalers with a lean, seasoned team that has a solid track record delivering BESS for utilities and IPPs across a variety of use cases.”
Prevalon Gains Scale Through Nextpower Platform
For Prevalon, the transaction provides access to a larger global customer network and expanded deployment opportunities. The company has built a reputation around energy storage systems designed for demanding power environments where uptime and reliability carry significant operational consequences. Integration into the Nextpower platform could accelerate adoption across utility, industrial, and hyperscale segments. The combined organization will also have greater reach into international infrastructure markets.
Tom Cornell, President and CEO of Prevalon Energy, framed the acquisition as an opportunity to scale the company’s technology through a larger organization. “Operating as part of Nextpower, we can leverage their global reach and deep client relationships. Our customers will benefit from doing business with a reliable, investment-grade partner with decades of experience in power generation and management.”
The acquisition highlights a growing reality across digital infrastructure markets: power technology is becoming as important as compute technology. AI developers can no longer assume that grid capacity alone will support future expansion plans. Storage systems, intelligent controls, and power conversion technologies are increasingly shaping where and how new AI facilities get built. Consequently, companies capable of delivering integrated energy infrastructure stand to gain influence across the next phase of AI growth.
For Nextpower, the Prevalon acquisition represents more than an entry into battery storage. It marks a strategic attempt to become a comprehensive power infrastructure provider at a moment when energy availability is emerging as one of the defining constraints on AI expansion. As hyperscalers pursue larger AI deployments, the ability to stabilize, store, and intelligently manage power may become one of the industry’s most valuable competitive advantages.
