Energy Vault Signs 1.25 GW AI Data Center Power Agreement in Texas
Energy Vault’s Cross Trails battery storage project in Snyder, Texas. The company will supply battery storage, grid-forming power conversion and controls software into a 1.25 GW off-grid power system for a Texas AI data center. Photo: Energy Vault.
Key Points
- Energy Vault Holdings (NYSE: NRGV) signed a strategic commercial agreement to supply an initial 1.25 GW of integrated power infrastructure for hyperscaler AI data centers.
- The company will provide battery energy storage systems, grid-forming power conversion systems and AI infrastructure control software, paired with a national EPC partner’s turnkey power generation and Caterpillar gensets.
- The initial deployment is backed by a hyperscaler customer contract in Texas, with an expected revenue impact of approximately $500 to $600 million across the second half of 2026 and 2027.
- Energy Vault called it the largest single contract executed in its history, with initial deployments expected over the next four to twelve months.
- Energy Vault said the revenue impact of the agreement will be discussed on its earnings call scheduled for August 11, 2026.
The Agreement
Energy Vault Holdings has executed a strategic commercial agreement to supply battery energy storage systems, grid-forming power conversion systems and AI infrastructure control software into an initial deployment of 1.25 gigawatts of integrated power infrastructure for hyperscaler AI data centers.
The initial 1.25 GW deployment is backed by a hyperscaler customer contract for a site in Texas. Energy Vault expects a revenue impact of approximately $500 to $600 million across the second half of 2026 and 2027. Initial deployments are expected over the next four to twelve months.
Energy Vault is not delivering the project alone. Its counterparty is a national turnkey power generation engineering, procurement and construction contractor, which supplies dispatchable generation using Caterpillar gensets and handles plant integration. Energy Vault’s storage, power conversion and software sit inside that plant design. Neither the hyperscaler customer nor the EPC partner was named.
| Detail | Terms as disclosed |
|---|---|
| Initial capacity | 1.25 GW of integrated power infrastructure |
| End customer | Hyperscaler AI data center operator (not named) |
| Location | Texas |
| Energy Vault scope | Battery energy storage, grid-forming power conversion, AI infrastructure control software |
| Partner scope | Turnkey power generation, Caterpillar gensets, EPC and plant integration |
| Expected revenue impact | Approximately $500 to $600 million (2H 2026 and 2027) |
| Deployment timeline | Initial deployments over the next four to twelve months |
| Significance | Largest single contract in company history |
— Robert Piconi, Chairman and Chief Executive Officer, Energy Vault“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.”
Inside the Integrated Platform
The package brings together dispatchable power generation, battery storage, grid-forming inverters, AI controls software, and EPC and plant integration into a single supply arrangement aimed at AI data centers and high-performance computing campuses.
The systems are designed to run off-grid. Energy Vault says that lets a data center draw power before it is connected to the utility grid, on what the company calls a “speed-to-power” schedule that does not depend on interconnection timelines.
Energy Vault ties the design to the swings in AI power demand: GPU clusters ramp up and down quickly, which the company says creates transient voltage, frequency and power-quality stresses that generation alone may not handle efficiently. It positions its controls software as the layer that manages those swings, balancing power flows and holding voltage and frequency steady while limiting generator cycling.
Energy Vault says the solution is built to support FEOC-compliant deployments, and that its modular design lets customers add utility power, renewable generation or other distributed energy resources as a site grows.
— Senior executive, Energy Vault’s strategic power infrastructure partner“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.”
From Storage Vendor to Power Platform
Energy Vault, based in Westlake Village, California, built its early business selling storage technology and managing project construction for third parties. Over the past two years it has been repositioning itself as an owner and operator of energy infrastructure and, increasingly, as a supplier of power to data centers rather than a single-product storage vendor.
The AI data center market sits at the center of that shift. Energy Vault has been developing “powered land” and modular “powered shell” data center projects that co-locate generation and storage, and it markets a software stack for running those hybrid plants. This Texas agreement extends the same logic to a much larger scale and puts the company’s storage, power conversion and controls inside a gigawatt-class generation plant built by a specialist EPC partner.
Piconi tied the announcement directly to how AI is changing power procurement, arguing that customers now want complete infrastructure rather than individual technologies.
— Robert Piconi, Chairman and Chief Executive Officer, Energy Vault“Artificial intelligence is fundamentally changing how critical power infrastructure is designed, deployed and operated. Customers are no longer procuring individual technologies—they require integrated power infrastructure capable of delivering reliable, always-on electricity at unprecedented speed and scale.”
What Comes Next
Energy Vault described the arrangement as a repeatable platform rather than a one-off supply contract. The two companies intend to jointly pursue further hyperscaler, neocloud and AI infrastructure opportunities in markets where limited grid capacity and long interconnection timelines are pushing developers toward behind-the-meter and bridge-power solutions.
Whether that pipeline materialises will depend on execution against the initial 1.25 GW. The customer and the EPC partner both remain unnamed, so the disclosed figures rest on Energy Vault’s own account of the contract.
Energy Vault said the revenue impact of the agreement will be discussed on its earnings call scheduled for August 11, 2026.