Nextpower Acquires Prevalon's Energy Storage Business to Enter Data Center Power Supply

Solar tracker supplier Nextpower, headquartered in Fremont, California, announced that it will acquire battery company Prevalon Energy in a combination of cash and stock valued up to $365 million.

Prevalon is a joint venture between Mitsubishi Power Americas and EES. The company's CEO, Dan Shugar, stated that this transaction allows the company to directly enter the data center power supply field while obtaining the energy storage business.

Benefiting from this acquisition, Nextpower has raised its financial expectations, increasing its revenue target for 2027 from a previous range of $3.8 billion to $4.1 billion to a new range of $4 billion to $4.4 billion, and its adjusted profit expectations have also been raised to $845 million to $930 million. Previously, Nextpower has carried out a series of mergers and acquisitions, extending its business from photovoltaic trackers to electrical wiring and power conversion and other clean energy development services.

The power industry is undergoing a reorganization due to the surge in electricity use triggered by artificial intelligence. Last week, NextEra Energy acquired Dominion Energy for a stock price of about $67 billion. BloombergNEF, a research institution under Bloomberg, predicted that the electricity demand for data centers will more than double over the next decade, and the global battery market size will expand to 10 times that of 2025 by the end of 2036.

Currently, Prevalon has installed more than 6 gigawatt-hours of battery energy storage systems and has contracts for the supply of AI and data centers with 1.3 gigawatts. After the acquisition, it will operate as a wholly-owned subsidiary of Nextpower.