US electrical infrastructure company Shoals Technologies has partnered with data center transformer manufacturer ON.energy to deploy several gigawatts of critical power systems into the AI data center market.

The partnership will combine ON’s medium-voltage UPS solution with Shoals' engineering expertise and electrical balancing solutions to support critical power systems in the data center market.

“As artificial intelligence and cloud computing drive unprecedented growth in energy demand, data centers are under pressure to secure long-term, reliable power, rapidly and at scale,” Brandon Moss, CEO of Shoals, stated. “At Shoals, we are well-positioned to support that growth and are scaling our production capacity as we expand into our ~638,000 square foot manufacturing campus in Portland, TN. This agreement with ON.energy reflects a commitment to deliver solutions that combine manufacturing excellence with simple, innovative execution.”

ON launched its medium voltage UPS in October of last year. According to the company, the system is designed to scale from megawatt to gigawatt levels in both grid-connected and off-grid environments. It can absorb transient loads and fluctuations from GPU clusters, helping stabilize the grid and protect on-site generation.

“AI data centers don’t just need more power. They need a power architecture that’s predictable under stress, fast to deploy, and designed to interact with the grid,” said Alan Cooper, CEO of ON.energy. “By pairing our medium-voltage AI UPS platform with Shoals’ DC Recombiner, we’re delivering a simpler, more scalable path to resilient backup power, one that protects uptime and helps data centers become grid assets as they grow.”

Following this, in December, the company signed a 5GW transformer supply agreement for data center and renewable infrastructure applications in the US.

Most recently, the company completed construction of one of its UPS systems at the National Laboratory of the Rockies (NLR) in Boulder, Colorado.

ON.energy claims that the UPS is the first medium voltage unit engineered specifically for the AI data center market.

Founded in 1996, Shoals is headquartered in Portland, Tennessee. The company is a provider of electrical balance-of-system solutions for solar, energy storage, and AI data center infrastructure, designed to speed up installation times and improve system reliability.