Energy Vault signed a 1.25 GW AI data center power infrastructure agreement in Texas, committing to integrated power generation and storage.

Energy Vault, a battery storage developer and system integrator, has entered a strategic agreement to supply power infrastructure for a hyperscaler AI data centre in Texas. Announced on August 7, the deal covers battery energy storage systems, grid-forming power conversion systems, and AI infrastructure control software supporting an initial 1.25GW deployment for an undisclosed customer. The company projects the agreement will generate approximately $500–600 million in revenue during the second half of 2026 and 2027.

The integrated system combines Energy Vault's technology with power generation capabilities and engineering, procurement, and construction services from Caterpillar. It is designed to deliver grid-independent power for AI data centres and high-performance computing facilities, with generation, storage, power conversion, and electrical infrastructure operating as a unified power plant rather than independent components.

AI computing creates variable power demands as GPU clusters scale up and down, generating transient voltage, frequency, and power quality challenges. Energy Vault's control software manages the site's power infrastructure as an operating system, coordinating power flows, voltage and frequency stability, generator cycling, and fuel efficiency in real-time response to dynamic compute demands.

Initial deployments are expected within four to twelve months and can operate independently of traditional utility interconnection schedules. The modular design allows customers to deploy AI infrastructure before permanent grid connection becomes available, with options to integrate utility power, renewable generation, and additional distributed energy resources as requirements expand.

The announcement reflects Energy Vault's recent strategic pivot. In May, after releasing Q1 2026 financial results, the company repositioned itself from an EPC provider to an independent power producer, targeting power purchase agreements with data centres and hyperscalers rather than tolling agreements or utility offtake deals. The company has also expanded its project portfolio and operations in Australia and Japan.