Energy Vault said it has signed its single largest commercial agreement, winning a deal to supply BESS and grid-forming power conversion systems, for a 1.25 GW integrated power infrastructure deployment serving a hyperscaler AI data center in Texas.
In the rush to deploy data centers and with new restrictions and political pressure coming into play on the ERCOT grid for data centers, the structure is designed to bypass utility interconnection entirely. Even without new limitations, grid connection queues can be as long as five years or more in certain US markets. Texas Governor Greg Abbott said the state had 474 GW of requests to connect to the Texas grid, with 90% of those being data centers, though not all would be expected to be built and delivered.
Energy Vault said its initial deployments are expected within four to 12 months, with revenue expectations provided given it is a public company, with the deal set to be in the range of $500–600 million across the second half of 2026 and 2027. The EPC partner on the power infrastructure and generation side has not been named, but the release suggested Caterpillar gensets will provide off-grid power.
The system is designed to be FEOC-compliant as it becomes a standard requirement for US projects seeking federal incentives.
Energy Vault said the two companies intend to pursue additional hyperscaler and neocloud opportunities beyond the initial Texas deployment without revealing further targets, but Energy Vault’s Chairman and CEO Robert Piconi noted that artificial intelligence is “fundamentally changing how critical power infrastructure is designed, deployed and operated.”
What else they said:
Energy Vault’s Robert Piconi: “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.”
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