Nextpower Acquires Battery Storage Specialist Prevalon Energy: Entry into BESS and AI Data Centers – 2027 Outlook Raised

Fremont/California – Solar and energy technology provider Nextpower is entering the battery storage systems market with the acquisition of US-based battery storage specialist Prevalon Energy. The acquisition also extends the company's existing solar energy technology platform to include applications for power grids as well as AI and hyperscale data centers.

The acquisition expands Nextpower's existing solar energy technology platform to include battery storage systems as well as intelligent control and energy management software. Prevalon has extensive installed battery storage capacity and binding supply agreements for AI and hyperscale data center projects. Closing of the transaction is subject to antitrust approvals; Nextpower expects a positive impact on its financial metrics as early as fiscal year 2027.

Battery Storage and AI Data Centers: Expanding the Technology Platform

Prevalon Energy is a joint venture of Mitsubishi Power Americas and EES, with more than 6 GWh of installed battery storage capacity worldwide and binding supply agreements totaling 1.3 GW for AI and hyperscale data center projects. According to Nextpower, the purchase price is up to USD 365 million plus assumed cash, comprising both cash and stock components. Closing of the transaction is expected in the second quarter of fiscal year 2027.

Prevalon's product line includes the modular HD5 DC Block and HD5 AC Block energy storage units as well as the insightOS software platform for control, monitoring and diagnostics. The so-called Hybrid Power Stabilizer was developed to manage rapid load changes and support grid stability – requirements that play a central role particularly in AI data centers, private power grids and industrial energy systems.

"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. Prevalon already works with major hyperscalers and has an experienced team with a proven track record. Nextpower estimates that the global market potential for battery storage systems outside China could reach up to USD 35 billion by 2030, including up to USD 15 billion in the United States.

Strategic Expansion Toward an Integrated Energy Technology Platform

With the Prevalon acquisition, Nextpower is continuing its acquisition strategy: earlier in May, the company had already announced another acquisition in the field of power electronics. Going forward, the platform is set to encompass structural systems, electrical infrastructure, power electronics, energy storage, control and automation technology as well as software solutions.

"Operating as part of Nextpower, we can leverage their global reach and deep client relationships," said Tom Cornell, President and CEO of Prevalon Energy.

2027 Outlook Raised: Revenue of Up to USD 4.4 Billion Expected

In connection with the acquisition, Nextpower is raising its financial guidance for fiscal year 2027. Expected revenue increases to USD 4.0–4.4 billion, compared to the previous guidance of USD 3.8–4.1 billion. Adjusted EBITDA is now expected to be between USD 845 and 930 million, up from USD 825–900 million previously. Adjusted diluted earnings per share are projected at USD 4.30–4.73.

According to Nextpower, the updated guidance reflects additional costs of approximately USD 50 million related to the accelerated expansion into the power conversion technology market.

Source: IWR Online, 02 Jun 2026