Shoals Technologies Group has announced that manufacturing and deliveries are underway for what will be the largest grid-connected battery installation in the United States, a 1.1 gigawatt project serving a hyperscale data center developed in partnership with ON.energy, a company focused on grid-safe power architecture for artificial intelligence data centers.

Project Scale and Scope

The 1.1 GW project represents a significant milestone in the buildout of power infrastructure for AI data centers. Shoals, which trades on the Nasdaq under the ticker SHLS and is headquartered in Portland, Tennessee, has already shipped a significant number of its PowerHub units for the initial phase of the project.

For that initial phase alone, the company expects to manufacture approximately 360 PowerHub systems at its Tennessee Mega facility. Deliveries to the first phase are now complete, with project commissioning expected to begin in early Q4.

Deliveries to additional phases of the project are described as on schedule and underway.

Once all phases are complete, the installation will hold the distinction of being the largest grid-connected battery project in the United States.

Technology at the Center of the Partnership

The Shoals PowerHub is described as a scalable DC electrical architecture designed to support the reliable and efficient deployment of critical power infrastructure for AI data centers.

In this project, it is integrated with ON.energy's patented medium-voltage AI UPS system. Together, the two technologies form what ON.energy characterizes as a grid-safe power system, a configuration the company says is necessary as the AI industry moves to bring unprecedented levels of new capacity online.

Shoals describes PowerHub as a plug-and-play electrical balance-of-system solution, and the company has positioned its broader product portfolio around utility-scale solar, battery storage, and data center power systems since its founding in 1996.

Why Shoals Was Selected

Dax Kepshire, Chief Operating Officer of ON.energy, said the company chose Shoals based on its track record in DC electrical systems and its capacity to scale domestic manufacturing quickly. The speed of deployment appears to have been a central factor in the selection.

Kepshire stated that ON.energy and Shoals are delivering the largest battery project in the United States in what he described as record time.

The emphasis on domestic manufacturing is notable given ongoing industry attention to supply chain resilience and U.S.-based production for critical infrastructure.

All manufacturing for the project is taking place at the Shoals Tennessee Mega facility.

Executive Statements on Execution and Growth

Brandon Moss, CEO of Shoals, framed the announcement in terms of operational execution rather than commercial speculation.

He noted that teams in Tennessee are building, testing, and shipping products going directly into mission-critical energy infrastructure, and described the milestone as demonstrating the company's ability to manufacture at scale and deliver for customers.

Moss also pointed to the broader commercial relationship with ON.energy as significant beyond this single project.

He indicated that the initial deployment, combined with additional opportunities the two companies are pursuing together, reflects the commercial potential of the relationship and the growing need for scalable power infrastructure serving AI data centers.

Expanded Collaboration Across Multiple Sites

The announcement confirms that the partnership between Shoals and ON.energy extends beyond the initial 1.1 GW project.

The two companies have expanded their collaboration to support multiple additional project sites throughout the United States, though specific locations, capacities, or timelines for those additional sites were not disclosed in the announcement.

Moss described the existing work as providing a strong foundation for continued collaboration, characterizing the additional opportunities as reflective of the growing commercial demand for power infrastructure in the AI sector.

Industry Context

The project arrives at a moment when the power demands of AI data centers have become a central challenge for technology companies and grid operators alike.

ON.energy has built its business model around what it describes as grid-safe power architecture, positioning battery-based systems as a way for AI campuses to access reliable power while managing their relationship with the broader electricity grid.

Shoals, for its part, has sought to position its capabilities in DC electrical systems and large-scale manufacturing as directly applicable to the data center power market, alongside its established presence in utility-scale solar and battery storage.

The company's ability to ramp production at its Tennessee facility for this project is being presented as evidence that its domestic manufacturing infrastructure can support the pace of deployment that the AI data center industry requires.