Nextpower (Nasdaq: NXT) has agreed to acquire battery energy storage specialist Prevalon Energy for up to $365 million, marking the solar power technology company's entry into the battery energy storage system (BESS) and AI-driven data center infrastructure markets. Announced on May 28, 2026, the all-cash-and-stock deal brings Nextpower a deployed portfolio of more than 6 GWh of BESS systems globally and 1.3 GW of firm supply contracts supporting AI and hyperscaler data center infrastructure deployments, according to the company's SEC filing. The transaction remains subject to antitrust regulatory review.
Background
Prevalon Energy was established as a standalone company in early 2024, carved out of Mitsubishi Power Americas' BESS division as a joint venture with EES. The spin-out was created to focus exclusively on the growing battery storage market, scaling from roughly 3 GWh of deployed capacity at inception to its current position. Nextpower, meanwhile, built its business around utility-scale solar power conversion systems but had not maintained a significant BESS product line.
The acquisition follows a separate, earlier announcement in which Nextpower agreed to acquire an advanced power conversion product portfolio-moves that together signal a deliberate push toward integrated, grid-aware energy infrastructure. According to Nextpower, the global BESS market outside China could reach $35 billion by 2030, with the U.S. market alone accounting for up to $15 billion.
Deal Details
The transaction is structured as approximately $150 million in upfront cash, $50 million in stock payable after one year, and up to $165 million in contingent cash consideration, according to a stocktitan analysis of the company's 8-K filing.
Prevalon's product lineup includes the HD5 DC and AC block modular storage systems, an insightOS controls and monitoring platform, and a Hybrid Power Stabilizer (HPS) designed for millisecond-level response to rapid load changes, voltage and frequency stabilization, and peak shaving. The HPS also supports black start, islanding, and cybersecure on-premise control aligned with IEC 62443 standards, according to ESS News. These capabilities target utility-connected and self-powered AI data centers, where GPU workloads generate unpredictable power draw requiring fast-response storage.
"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. He added that Prevalon is "already engaged with large hyperscalers" and brings a track record of delivering BESS for utilities and independent power producers (IPPs) across multiple use cases.
In connection with the acquisition, Nextpower raised its fiscal year 2027 financial guidance. The company now projects revenue of $4.0 billion to $4.4 billion, up from a prior range of $3.8 billion to $4.1 billion, and adjusted EBITDA of $845 million to $930 million, contingent on a successful close of the transaction, according to the company's investor relations page.
Outlook
The transaction is expected to close in the third calendar quarter of 2026, pending customary antitrust review. Once integrated, Prevalon's platform will position Nextpower to offer turnkey energy management solutions spanning solar generation, power conversion, battery storage, and intelligent controls-a combination increasingly demanded by hyperscale operators seeking firm power agreements and stronger grid resilience.
Competing energy management system (EMS) providers serving AI data center workloads will face a more vertically integrated rival capable of addressing demand response, peak shaving, and grid stabilization from a single platform.
