Nextpower Acquires Prevalon Energy for $365 Million

Nextpower has moved to acquire Prevalon Energy for up to $365 million, a strategic expansion beyond its traditional solar infrastructure roots into battery energy storage systems (BESS) and AI data center power markets. This acquisition marks a significant diversification in Nextpower’s offering, allowing it to enter the rapidly growing sectors of energy storage and critical power applications for industries such as utilities and hyperscale data centers.

Prevalon Energy, a U.S.-based company co-owned by Mitsubishi Power Americas and EES, has successfully deployed over 6 gigawatt-hours (GWh) of battery energy storage systems globally. Furthermore, Prevalon boasts 1.3 gigawatts (GW) of firm supply contracts focused on supporting AI and hyperscale data center infrastructure. The acquisition aims to leverage Prevalon's grid stabilization, backup power, and energy management capabilities across various utility-scale and industrial applications. Nextpower anticipates that the deal will strengthen its integrated power technology portfolio, which was recently boosted by acquiring assets from Zigor Corporation and Apex Power.

By incorporating Prevalon's technology, Nextpower aims to enhance its position as a comprehensive provider of power solutions, now spanning solar generation, power conversion, battery storage, and intelligent energy management. The firm's increased fiscal year 2027 financial targets reflect this strategic ambition. Revenue predictions have been adjusted upwards to $4.0 billion to $4.4 billion, from the previously forecasted range of $3.8 billion to $4.1 billion. Adjusted EBITDA forecasts also rose to between $845 million and $930 million, surpassing the prior estimate of $825 million to $900 million.

In the broader context, Nextpower's acquisition of Prevalon appears timely, with estimates projecting the global battery energy storage market outside China to grow to $35 billion by 2030. The U.S. is expected to contribute approximately $15 billion to this opportunity. This move positions Nextpower to tap into the surging demand for AI-driven data center infrastructure — highlighted as a significant growth driver by the company.

The deal is scheduled to close in Nextpower's fiscal second quarter of 2027, contingent on regulatory approvals and customary closing conditions. Dan Shugar, Founder and CEO of Nextpower, emphasized the acquisition's potential, stating it opens new market opportunities for power supply applications in AI data centers, thereby aligning with customers' expanding requirements for integrated firm power solutions.