Energy Vault secures contract to supply 1.25 GW of off-grid battery energy storage systems (BESS) for a US data center.
Energy Vault has secured its single largest commercial agreement, winning a contract to supply battery energy storage systems (BESS) and grid-forming power conversion systems for a 1.25 GW integrated power infrastructure deployment serving a hyperscaler AI data center in Texas.
The system is designed to bypass utility interconnection entirely, addressing growing challenges in connecting new data centers to the grid. Grid connection queues in certain U.S. markets can exceed five years, and additional political pressures on the ERCOT grid have intensified the need for alternative approaches. Texas Governor Greg Abbott noted that the state has received 474 GW in requests to connect to the grid, with 90% originating from data centers, though not all projects are expected to be completed and delivered.
Energy Vault anticipates initial deployments within four to twelve months, with revenue in the range of $500–600 million across the second half of 2026 and 2027. While the EPC partner for the power infrastructure has not been publicly named, the company indicated that Caterpillar gensets will supply off-grid power generation. The system is designed to comply with FEOC requirements, now a standard for U.S. projects seeking federal incentives.
The two companies plan to pursue additional hyperscaler and neocloud opportunities beyond the Texas deployment, though specific targets remain undisclosed. Energy Vault Chairman and CEO Robert Piconi stated that artificial intelligence is "fundamentally changing how critical power infrastructure is designed, deployed and operated."
Piconi added: "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."
An unnamed 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."