Energy Vault to supply 1.25 GW off-grid battery energy storage system for hyperscaler AI data center in Texas

Type: Supply Agreement · Technology: Storage · Country: United States · Capacity: 1.25 GW · Announced: 2026-08-10

Energy Vault signed its largest commercial agreement to date, securing a supply deal to deliver a 1.25 GW integrated battery energy storage system (BESS) and grid-forming power conversion systems for an off-grid power infrastructure deployment serving a hyperscaler AI data center in Texas. The project bypasses utility interconnection entirely, addressing ERCOT grid limitations and multi-year connection queues that can exceed five years in some U.S. markets. Caterpillar gensets will provide primary off-grid power, while Energy Vault’s BESS and grid-forming technology integrate into a modular plant design to deliver scalable, dependable power for hyperscale campus requirements. Initial deployments are scheduled within 4 to 12 months, with revenue expected between $500 million and $600 million across the second half of 2026 and 2027. The system is designed to meet Foreign Entity of Concern (FEOC) compliance standards, aligning with federal incentive requirements for U.S. projects.

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