Nextpower announced a definitive agreement to acquire Prevalon Energy for up to $365 million, marking its entry into the battery energy storage systems (BESS) and AI data center power markets. The acquisition expands Nextpower’s technology platform beyond solar infrastructure into energy storage, energy management software, and critical power applications for utilities, industrial facilities, and hyperscale data centers.
Prevalon, a U.S.-headquartered battery storage company and joint venture between Mitsubishi Power Americas and EES, has deployed more than 6 GWh of battery energy storage systems globally and holds 1.3 GW of firm supply contracts supporting AI and hyperscale data center infrastructure. The company’s platform provides solutions for grid stabilization, backup power, and energy management across utility-scale and industrial applications.
The acquisition is expected to strengthen Nextpower’s position as an integrated power technology provider, building on its recent move into power conversion systems through the acquisition of assets from Zigor Corporation and Apex Power. Together, these transactions broaden the company’s offerings across solar generation, power conversion, battery storage, and intelligent energy management.
As a result of the transaction, Nextpower increased its fiscal year 2027 outlook. The company now expects revenue of $4.0 billion to $4.4 billion, up from its previous forecast of $3.8 billion to $4.1 billion. Adjusted EBITDA guidance was also raised to a range of $845 million to $930 million, compared with the prior outlook of $825 million to $900 million.
Nextpower said the acquisition significantly expands its addressable market, citing estimates that the global battery energy storage market outside China could reach up to $35 billion by 2030, with the United States representing up to $15 billion of that opportunity. The company expects the deal to be accretive to its fiscal 2027 financial outlook and believes demand from AI-driven data center infrastructure will be a major growth catalyst.
The transaction is expected to close during Nextpower’s fiscal second quarter of 2027, subject to customary regulatory approvals and closing conditions.
KEY QUOTE:
“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. 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.”
Dan Shugar, Founder and CEO, Nextpower
