Energy Vault Holdings, Inc. has signed a strategic commercial agreement. The agreement covers 1.25 gigawatts of integrated AI power infrastructure. Energy Vault will supply battery energy storage systems (BESS) under the agreement. It will also provide grid-forming power conversion systems and AI infrastructure control software.
The initial deployment will support hyperscaler AI data centers. The project will use a turnkey power generation EPC partner and Caterpillar gensets. Together, the companies will establish an integrated platform for hyperscale AI infrastructure. The platform combines power generation, battery storage, power conversion, and advanced controls.
It will also incorporate turnkey engineering, procurement, and construction capabilities. The architecture aims to provide reliable power for high-performance computing campuses. The companies will deploy fully integrated, off-grid power systems. These systems can bring AI computing capacity online faster than traditional utility connections.
Moreover, the systems will provide reliability and operational flexibility for advanced AI workloads. Initial deployments are expected within the next four to twelve months. This timeline supports a faster speed-to-power model. It also reduces dependence on traditional utility interconnection schedules.
The initial 1.25 GW deployment has backing from a hyperscaler customer contract. The project will take place in Texas. Energy Vault expects a revenue impact of approximately $500 million to $600 million. The company expects this impact during the second half of 2026 and 2027.
Energy Vault plans to discuss the expected revenue impact during its August 11, 2026 earnings call.
Integrated Power Platform Targets AI Data Centers
Global markets continue to see expansion of hyperscaler AI infrastructure. This means developers are increasingly in need of complete power infrastructure platforms. Certain technologies might not be adequate for the evolving needs of AI computing loads. GPU clusters can scale up and down quickly during AI work.
These changes result in hard transient and power quality requirements. They also cause voltage and frequency control problems. The integrated solution controls generation and battery storage in real time. It also controls the electrical infrastructure across the site via a common architecture.
The solution also supports FEOC compliant deployments. It provides a repeatable reference architecture for power distribution and digital control. The platform also offers grid stabilization and active load optimization. Its assets do not work in isolation like in traditional systems.
Rather, the integrated platform constantly coordinates the generation and battery storage systems. It controls the systems of power conversion and redundancy . Energy Vault’s AI infrastructure control software is the operating system of site power infrastructure. The software dynamically manages power flows throughout the facility.
It helps keep stable voltage and frequency when AI workloads change. It can also reduce generator cycling and improve fuel efficiency. The software also provides for rapid response for dynamic AI compute environments. Thus, the architecture supports the requirements of hyperscale data center operations.
The modular approach enables customers to install AI infrastructure before permanent grid connections are established. It can also incorporate utility power as campus needs grow. Customers can also add renewable generation and distributed energy resources. This gives you the flexibility to grow in the future across large AI campuses.
Energy Vault Builds Speed-to-Power Strategy
The national turnkey power generation EPC contractor brings extensive project experience. Its expertise covers several major power generation technologies. These include natural gas reciprocating engines and gas turbines. The contractor also has experience with diesel generation and solar PV.
Its capabilities further extend to emerging hydrogen technologies. Energy Vault adds its own energy storage and power management expertise. The company offers a broad portfolio of utility-scale battery energy storage systems. It also provides intelligent energy management software and hybrid plant integration capabilities.
Together, the companies can address growing demand for AI power infrastructure. The partnership also establishes a repeatable platform for future hyperscaler projects.
“Artificial intelligence is fundamentally changing how critical power infrastructure is designed, deployed and operated,” said Robert Piconi, Chairman and Chief Executive Officer of Energy Vault. “Customers are no longer procuring individual technologies—they require integrated power infrastructure capable of delivering reliable, always-on electricity at unprecedented speed and scale. With this agreement we have created a highly differentiated platform that combines industry-leading power generation, intelligent energy storage and advanced power plant software into a single integrated solution purpose-built for AI infrastructure. As our largest single contract executed to date, this milestone agreement represents another important step in Energy Vault’s strategic evolution from an energy storage technology pioneer into an integrated energy infrastructure provider. More importantly, it establishes a repeatable commercial platform that we believe can support substantial future expansion as hyperscaler AI infrastructure investments continue to accelerate globally.”
A senior executive at Energy Vault’s strategic power infrastructure partner commented, “Energy Vault’s BESS, grid-forming technology and software platform are central to this solution. By integrating those systems into our modular plant design, we can bring large blocks of dependable power online quickly while maintaining the performance, scalability and flexibility that hyperscale campuses require.”
The companies will also pursue additional AI infrastructure opportunities together. Their focus includes hyperscalers and neocloud providers.
They will target markets facing limited grid capacity and lengthy utility interconnection timelines. Rising electricity demand is also increasing the need for rapid power deployment.
The partnership will pursue behind-the-meter and bridge-power solutions. These solutions can support AI infrastructure while permanent grid connections remain under development. The companies designed the partnership as a scalable commercial platform. Therefore, future deployments can extend well beyond the initial contracted 1.25 GW capacity.
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News Source: Businesswire.com
