Energy Vault Holdings secures 1.25 GW power supply contract for AI data center operations.
Energy Vault Holdings (NRGV) shares surged 17.91% to $3.49 on Friday, then gained another 0.29% after hours to $3.50, following announcement of a major commercial agreement covering 1.25 gigawatts of power infrastructure for hyperscaler AI data centers. The deal represents Energy Vault's largest single contract and expands its role beyond traditional energy storage into integrated power systems.
Under the agreement, Energy Vault will supply battery energy storage systems, grid-forming power conversion technology, and infrastructure control software. The company will combine these systems with dispatchable power generation and turnkey engineering services for large computing campuses, creating an integrated platform designed to support demanding data center power requirements.
The planned systems will initially operate independently from traditional utility connections, allowing customers to bring computing capacity online faster than projects relying entirely on grid connections. Energy Vault expects initial deployments to begin within four to twelve months.
Large computing campuses require stable electricity as processing loads fluctuate throughout daily operations, creating sudden changes in voltage, frequency, power quality, and overall electricity demand. Energy Vault's control software will manage power flows while maintaining stable voltage and frequency across the infrastructure, reducing unnecessary generator cycling and improving fuel efficiency during changing computing workloads. The system can respond rapidly to sudden changes in electricity consumption from computing clusters.
The modular design allows customers to expand power infrastructure as their computing campuses grow. Operators can later connect utility electricity, renewable generation, or other distributed energy resources to the existing platform, enabling customers to begin operations before permanent utility connections become available while expanding capacity over time.
Energy Vault's strategic partner brings experience across natural gas engines, turbines, diesel systems, solar power, and hydrogen technologies. Energy Vault contributes battery systems, grid-forming technology, energy management software, and hybrid power integration capabilities. Both companies plan to deliver complete power systems rather than individual equipment packages.
The agreement creates a repeatable model for future hyperscale developments, with both companies planning to pursue additional hyperscaler, neocloud, and AI infrastructure projects. They will target markets facing constrained grid capacity, long interconnection timelines, and rising electricity demand.