Solar power technology company Nextpower (Nasdaq: NXT) has entered into a definitive agreement to acquire Prevalon Energy, a U.S.-based battery energy storage specialist, for up to $365 million in cash and stock, marking the Fremont, California-headquartered company's first move into the battery energy storage system (BESS) and AI data center energy management markets. The deal, announced May 28, 2026, adds Prevalon's integrated hardware and software platform - including an energy management system (EMS), intelligent controls, and grid-services capabilities - to Nextpower's expanding power technology portfolio.
Background
Nextpower, which rebranded from Nextracker in November 2025 as it expanded beyond solar tracking, has been building an end-to-end energy infrastructure platform through a series of acquisitions. The company recently acquired power conversion assets from Zigor Corporation's subsidiary Apex Power, covering inverter technology. The Prevalon deal adds the storage and controls layer of that strategy.
Prevalon Energy was established in early 2024 as a standalone entity spun out of Mitsubishi Power Americas and operates as a joint venture between Mitsubishi Power Americas and EES. Since its formation, the company has grown from approximately 3 GWh to more than 6 GWh of BESS systems deployed globally, according to Energy Storage News. Prevalon currently holds 1.3 GW of firm supply contracts supporting AI and hyperscaler data center infrastructure deployments, according to the company's announcement.
The acquisition comes as grid interconnection queues - often stretching five or more years - push hyperscale data center operators toward behind-the-meter storage and private microgrid architectures to secure reliable power for concentrated AI compute loads.
Details
The transaction is structured as approximately $150 million in upfront cash, $50 million in stock after one year, and up to $165 million in contingent cash consideration, according to filings with the U.S. Securities and Exchange Commission.
Prevalon's product portfolio centers on three integrated components relevant to data center energy managers and system integrators. Its HD5 DC block and newly released HD5 AC block provide modular, scalable BESS building blocks. These are managed by insightOS, Prevalon's controls and monitoring platform, which offers diagnostics, operational analytics, and long-term service capabilities. The third component is the Hybrid Power Stabilizer (HPS), announced May 26, 2026, which delivers millisecond-level response from power electronics, enabling voltage and frequency stabilization, generator protection, black start and islanding capability, and peak shaving, according to Energy Storage News. The HPS also incorporates cybersecure on-premise control aligned with IEC 62443 standards - the international framework for operational technology cybersecurity in industrial automation systems.
Markus Wilhelm, founder and CEO of Strata Energy, stated that "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."
Dan Shugar, founder and CEO of Nextpower, cited direct customer demand as a driver: customers had "rapidly expanded their storage programs" and requested that Nextpower extend its platform into power conversion and BESS. Tom Cornell, President and CEO of Prevalon, said the combined entity would give customers access to "a reliable, investment-grade partner with decades of experience in power generation and management."
In connection with the transaction, Nextpower raised its FY2027 financial outlook. The company now projects fiscal 2027 revenue of $4.0 billion to $4.4 billion, compared to a prior range of $3.8 billion to $4.1 billion, and adjusted EBITDA of $845 million to $930 million, against a prior range of $825 million to $900 million, according to the Nextpower investor relations release.
Nextpower estimates the global BESS market outside China could reach up to $35 billion by 2030, with the U.S. market representing up to $15 billion of that total.
Outlook
Closing remains subject to customary antitrust regulatory review, with completion expected during the second quarter of fiscal year 2027, according to SolarQuarter. Once integrated, the combined platform - spanning solar structural systems, power conversion, BESS hardware, the insightOS EMS, and intelligent controls - is positioned to compete for grid services contracts alongside hyperscale data center campuses. For facility managers and energy engineers evaluating interoperable EMS deployments, the insightOS platform's IEC 62443 alignment and modular storage architecture will be a key specification consideration as data center operators seek to manage both campus-level energy and grid-side ancillary services from a unified controls layer. See also our earlier analysis of AI-powered cooling and predictive analytics in data centers.
