Energy Vault Locks In 275 MW of Rolls-Royce MTU Engine Capacity—and the Financing—for Hyperscale AI Campuses

Energy Vault Holdings (NYSE: NRGV) has secured and fully contracted 275 MW of reciprocating engine generation capacity built on Rolls-Royce MTU technology, backed by a dedicated equipment financing package from Eagle Point Credit Management LLC. Equipment deliveries are scheduled to begin in the second half of 2027 and continue through the first half of 2028, and the capacity will anchor the company’s integrated onsite power architecture for hyperscale AI and high-performance computing campuses.

1. The Deal: Long-Lead Equipment and Capital, Locked In Together

The Westlake Village, California-based company announced the procurement alongside the financing—a senior secured credit facility of USD 137.5 million provided by Eagle Point to an Energy Vault subsidiary. The structure supports capital-efficient procurement while limiting the use of corporate capital before the equipment is deployed into customer projects. Together, the two moves address what Energy Vault identifies as the two critical requirements for large-scale AI infrastructure development: equipment availability and access to capital.

Contracting generation capacity ahead of deployment is itself the point. Reciprocating engines of this class carry long lead times, and equipment orders placed early effectively reserve a slot on the factory floor—something hyperscale developers increasingly cannot afford to leave until project financing closes.

2. Why It Matters: Power Is the Critical Path for AI

The transaction speaks to one of the most significant constraints facing hyperscale AI infrastructure: access to reliable power on timelines that match rapidly growing compute demand. "For hyperscalers, access to power and speed-to-power are increasingly determining where and how quickly AI infrastructure can be deployed," said Cory Magnuson, President of Asset Vault at Energy Vault. "By securing 275 MW of reciprocating engine generation capacity for delivery beginning in 2027, together with dedicated financing supporting the procurement, we are taking greater control over two critical elements of execution: equipment availability and capital."

The company frames the move as part of its strategy to build, own and operate the critical power infrastructure required for large-scale AI campuses—creating long-duration infrastructure assets, recurring cash flows and durable value for shareholders, while giving hyperscale customers greater certainty around power availability and deployment schedules.

3. The Architecture: Engines, Batteries and Grid-Forming Controls

The Rolls-Royce MTU engines are designed for demanding power applications, including mission-critical and data center infrastructure. Their modular nature is expected to support phased deployment and expansion as Energy Vault develops onsite power infrastructure across its AI campus portfolio.

The engines will be deployed as one element of an integrated power architecture that combines dispatchable onsite generation, battery energy storage systems, grid-forming power conversion systems and advanced power plant controls. The design goal is a repeatable pathway to faster energization while supporting the reliability, power quality and operational flexibility required by next-generation AI workloads.

4. Powered Land: Building, Owning and Operating AI Power

The 275 MW of secured capacity supports Energy Vault’s Powered Land platform, which brings together development-ready land, grid access, onsite generation, energy storage, electrical infrastructure and intelligent controls into an integrated offering. Depending on project requirements, Energy Vault intends to develop, finance, build, own and operate these assets under long-term commercial agreements with hyperscale and AI infrastructure customers, and the company says the equipment complements its multi-gigawatt pipeline of AI infrastructure opportunities.

For Eagle Point, the facility is a bet on the same trend. "The rapid growth of AI infrastructure is creating significant demand for power capacity and the capital required to deploy that infrastructure at scale," said Jennifer Powers, Principal and Head of Infrastructure Credit at Eagle Point. "Equipment lead times are often a critical path to getting power online and our bespoke structuring solutions aim to move as quickly as the market demands."

The deal points to a broader pattern in AI infrastructure finance: credit is migrating upstream, from financing finished power assets to financing the longest-lead equipment itself. As engine, turbine and transformer lead times stretch, pre-contracted capacity and equipment-level facilities are becoming a competitive differentiator—and for financiers, AI’s power build-out is turning supply-chain lead times into a new lending opportunity.

Source material: Energy Vault and Eagle Point Credit Management announcements