Nextpower Acquires Prevalon to Expand Energy Storage

In July 2026, Nextpower completed its acquisition of Prevalon Energy for up to USD 365 million, officially launching an advanced energy storage business. This move integrates Prevalon's battery energy storage systems (BESS) and software into Nextpower's platform, expanding its market reach into utility grids, hybrid power, and power-hungry AI data centers.

Acquisition Adds Battery Energy Storage Systems and Management Tech

Nextpower's acquisition of Prevalon is a significant step in its strategy to facilitate comprehensive solutions for power plant design, optimization, and operations. This addition further accelerates Nextpower's platform with energy storage capabilities, including a proven portfolio of battery energy storage systems (BESS) and energy management technologies. The Prevalon team, led by CEO Tom Cornell, makes over 6 GWh of deployed energy storage systems globally. 

Dan Shugar, founder and CEO of Nextpower, prioritized the importance of reliable energy storage for critical energy infrastructure, noting that this acquisition strengthens their position in serving utility-scale customers and data centers. As demand for electricity rises, Nextpower aims to offer dependable and scalable power solutions in the rapidly expanding energy storage market.

Inducement Awards

• Nextpower has granted inducement awards to former Prevalon Energy employees as part of the acquisition. These awards include 810,733 performance-based restricted stock units (PSUs) and up to 375,000 service-based restricted stock units (RSUs) for Nextpower’s Class A common stock.
• The RSUs will vest in four equal annual installments contingent on continued employment, while the PSUs will vest based on Prevalon’s achievement of a gross profit performance goal from April 1, 2026, to March 31, 2030.
• Granting of these awards complies with Nasdaq Listing Rule 5635(c) (4) and was approved by Nextpower’s independent Compensation and People Committee. Although awarded outside of Nextpower’s 2022 Equity Incentive Plan, they adhere to similar terms.

Impact on ICT Industry

This strategic move makes a positive impact on the ICT industry to overcome the growing power crisis by supplying firm, uninterrupted electricity and grid-stabilization technology to power-hungry AI and hyperscale data centers.

This initiative directly targets the ICT industry by supporting 1.3 GW of firm supply contracts for hyperscalers to manage GPU AI workloads. It not only leverages modular batteries and software for energy independence, but also integrates solar, tracking, and storage into one single-vendor pipeline. It further addresses industry challenges by replacing erratic renewable flows with dispatchable stored power to avoid grid brownouts. It also shortens heavy electrical infrastructure deployment using modular engineering and provides single-partner accountability with long-term lifecycle services.

Impact of the Energy Management Software Industry

The global energy management software market size accounted for USD 12.60 billion in 2025 and is predicted to increase from USD 14.29 billion in 2026 to approximately USD 44.31 billion by 2035, expanding at a CAGR of 13.40% from 2026 to 2035.

According to Precedence Research, this acquisition integrates large-scale battery energy storage systems and insightOS energy management software with solar hardware, delivering combined solar-plus-storage control to connect intermittent renewable generation and meet heavy power demands from AI data centers.

The integration merges solar tracking, power conversion, and storage software into a unified platform while introducing advanced grid tools for AI workload smoothing and rapid contingency management. Combining Prevalon’s deployed global storage with Nextpower's utility footprint develops an investment-grade partner that drives bankability and scale across energy management systems.

This partnership addresses traditional industry limitations by replacing fragmented multi-vendor silos with tightly together with hardware generation profiles and intelligent software dispatch. It improves project deployment for power-hungry hyperscalers and mitigates long-term operational challenges by providing a single trusted partner across the complete software and hardware lifecycles.

About Nextpower

Fremont-based Nextpower (formerly Nextracker Inc.) is a global energy technology provider delivering integrated structural, electrical, and digital systems for utility-scale clean energy and storage applications. The company’s portfolio includes flagship solar trackers, specialized foundations, power conversion, AI-enabled monitoring, and comprehensive design and operational services.

By combining hardware, software, and localized supply chains, Nextpower also aims to lower the levelized cost of energy (LCOE) and improve the deployment of reliable, firm power. This consolidated approach overcomes surging global electricity demand driven by data centers, AI, and transportation electrification.

About Prevalon Energy

Prevalon Energy, a Nextpower company and former Mitsubishi Power Americas joint venture, is a leading provider of utility-scale battery energy storage systems with over 6 GWh deployed worldwide. The company delivers integrated hardware, intelligent control software, and lifecycle services to enable a sustainable energy transition.

Their portfolio includes the HD5™ DC and AC storage systems, the Hybrid Power Stabilizer for AI data centers, and the insightOS™ management platform. Prevalon offers tailored solutions for utilities and high-demand industrial systems with a strong focus on safety and scalability.