Energy Vault signs 1.25GW off-grid power supply deal with Texas data center developer

Energy storage firm Energy Vault has signed a landmark agreement to supply battery energy storage systems (BESS), grid-forming power conversion systems, and AI infrastructure control software for a 1.25GW integrated power deployment at a hyperscale data center development in Texas. The deal, which marks the company's largest single contract to date, was signed with an unnamed developer and involves the joint deployment of fully integrated, off-grid power systems designed to accelerate the data center's connection by bypassing traditional utility interconnection timelines.

Initial deployments are expected to begin over the next four to 12 months, with the systems supported by an AI monitoring platform. Energy Vault said the platform will dynamically balance power flows, maintain voltage and frequency stability, minimize generator cycling, improve fuel efficiency, and deliver the rapid response required by highly dynamic AI compute environments. The approach underscores a growing industry shift toward behind-the-meter power solutions as hyperscale operators seek faster and more reliable paths to energization amid persistent utility grid bottlenecks.

"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," said Robert Piconi, chairman and CEO of Energy Vault.

Energy Vault develops and operates grid-scale energy storage projects using battery, gravity, and hydrogen technologies, and has been steadily expanding its footprint in the data center sector. Late last month, the company broke ground on its first data center development in Snyder, Texas, in partnership with Crusoe. That campus will comprise ten Crusoe Spark modular data centers with a combined capacity of 8MW, with potential expansion to 25MW in a second phase.

The company has also been building momentum through earlier collaborations. In February, it signed a strategic partnership with Peak Energy to develop dedicated energy storage architecture for AI-focused data centers and grid-scale storage projects. In December 2024, Energy Vault partnered with RackScale Data Centers (RSDC) to deliver 2GW/20GWh of primary power through its novel battery energy storage system.

Industry observers note that the deal signals a broader trend of storage providers moving beyond component supply into integrated energy infrastructure roles, particularly as AI-driven compute loads intensify demand for reliable, dispatchable power. Energy Vault's ability to package storage, power conversion, and software controls into a single offering could serve as a template for future hyperscale deployments seeking to circumvent grid interconnection delays.