• The agreement covers an initial 1.25GW of battery storage, grid-forming power conversion and control software for hyperscaler AI data centres in Texas
  • Initial deployments are expected within four to 12 months, with Energy Vault estimating US$500 million to US$600 million of revenue across the second half of 2026 and 2027

The Fact

Energy Vault has signed a strategic commercial agreement to supply battery energy storage systems, grid-forming power conversion systems and AI infrastructure control software for an initial 1.25GW of integrated power infrastructure at hyperscaler AI data centres in Texas. An unnamed national power-generation engineering, procurement and construction contractor will provide turnkey generation, Caterpillar generator sets and plant integration. Energy Vault said the initial 1.25GW is backed by a hyperscaler customer contract.

The companies plan to deploy integrated off-grid power systems designed to bring compute capacity online without waiting for traditional utility interconnection schedules. Initial deployments are expected within four to 12 months. Energy Vault estimates the agreement could contribute US$500 million to US$600 million of revenue across the second half of 2026 and 2027 and described it as its largest single contract to date. The architecture is also designed to integrate utility power, renewable generation and other distributed energy resources later. The company has not identified the customer, project sites or EPC partner.

The assessment

The agreement moves more of the power-delivery work onto the data-centre site. Instead of waiting for a permanent utility connection before energising compute, the planned architecture combines on-site generation, batteries, grid-forming power electronics and software controls into a power plant intended to support the load independently. Energy Vault says the battery and control layers will balance rapid load changes, maintain voltage and frequency, and reduce generator cycling, but those functions have not yet been demonstrated at the announced scale.

That shifts the near-term constraint from utility interconnection alone to execution of the private power system. The partners still need to procure and install generation and storage, complete site-level approvals, commission the controls and prove that the integrated system can carry AI loads reliably. Energy Vault has not disclosed site locations or operating performance.

For BTW readers, the 1.25GW agreement is notable because a large block of AI power is being assigned to an off-grid architecture before permanent grid access. The practical measure will be how much contracted capacity reaches energisation within the planned four-to-12-month deployment window.

What to watch

Named Texas sites, the EPC partner, the hyperscaler customer and notices to proceed would clarify how much of the 1.25GW is moving into construction. Permit filings, Caterpillar generator and BESS deliveries, commissioning and customer acceptance should be compared with the four-to-12-month schedule and Energy Vault's revenue estimate. Later utility or renewable integration would show whether the systems remain off-grid or operate as bridge power.