U.S.-based solar and power technology company Nextpower has entered into a definitive agreement to acquire Prevalon Energy, a joint venture between Mitsubishi Power Americas and EES, in a transaction valued at up to $365 million, excluding acquired cash.
The acquisition marks Nextpower’s strategic expansion into the battery energy storage system (BESS) and AI data center infrastructure markets, strengthening the company’s position as an integrated energy technology platform provider.
According to the company, the transaction will extend Nextpower’s existing solar power technology portfolio by integrating Prevalon’s battery storage systems, intelligent controls, and energy management software capabilities. The deal is subject to customary closing conditions, including regulatory and antitrust approvals, and is expected to close during the second quarter of fiscal year 2027.
Prevalon Energy has deployed more than 6 GWh of BESS systems globally and currently holds approximately 1.3 GW of firm supply contracts supporting AI and hyperscaler data center infrastructure projects.
Nextpower said the acquisition is expected to open new market opportunities across utility-scale grid infrastructure, industrial power systems, private grids, and AI-driven data center applications. The company estimates that the global BESS market outside China could represent an opportunity worth up to $35 billion by 2030, with the U.S. market accounting for nearly $15 billion.
The acquisition also prompted Nextpower to raise its fiscal year 2027 financial outlook. The company now expects revenue between $4.0 billion and $4.4 billion, compared to its earlier guidance of $3.8 billion to $4.1 billion. Adjusted EBITDA guidance has also been increased to between $845 million and $930 million.
Prevalon’s technology portfolio includes Hybrid Power Stabilizer systems designed to manage rapid load fluctuations and support grid stability in high-demand environments such as AI data centers. Its HD5 DC and AC block energy storage products are integrated with insightOS software for monitoring, diagnostics, and long-term operational support.
Nextpower founder and CEO Dan Shugar said the acquisition aligns with customer demand for integrated energy storage and power conversion technologies capable of supporting large-scale data center operations and utility applications.
The deal follows Nextpower’s recently announced acquisition of power conversion technology assets, further advancing the company’s strategy to build a comprehensive energy infrastructure platform spanning storage, automation, controls, software, and electrical systems.
Nextpower will host an investor conference call and webcast to discuss the acquisition and updated financial outlook.
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