T1 Energy makes a $32 million bet on KORE Power as AI data centers supercharge battery storage demand

As electricity demand climbs and AI data centers draw ever more power, T1 Energy is moving deeper into the battery storage business.

That strategy is taking shape through a planned $32 million deal for KORE Power, highlighting how central storage is becoming to a cleaner, more resilient U.S. energy economy.

What happened?

If completed, the transaction would bring KORE Power under T1 Energy, the company previously known as FREYR Battery. T1 said the deal is worth about $32 million in equity, cash, and assumed debt and is expected to close in the second quarter of 2026.

Electrek's reporting noted that much of the attraction is KORE Power's NRI division, which manages the design, installation, and operation of large-scale battery energy storage systems.

T1 said the NRI team has been involved in about 1,100 storage projects around the world and has provided energy storage solutions for more than 50 years to customers, including the U.S. government, national laboratories, utilities, developers, and industrial users.

Once the acquisition is finalized, T1 plans to rename KORE Power as T1 NRI. The company said it expects the deal to be EBITDA-positive in 2026 and to add between $15 million and $20 million in EBITDA in 2027.

The transaction still requires shareholder approval, though T1 said holders of a majority of KORE Power shares have already agreed to support it.

Speaking of T1 shareholders, former OpenAI researcher Leopold Aschenbrenner's hedge fund, Situational Awareness LP, disclosed a purchase of 10 million shares worth approximately $44 million in mid-May, and the stock has been a hot commodity — rising 37% — since for those investing in companies designed to support AI data center infrastructure. And especially for those looking to invest in companies designed to do so while prioritizing renewable energy use to offset the downsides. 

Why does it matter?

Battery storage is increasingly becoming one of the most important pieces of the clean energy buildout. It allows electricity to be stored when solar generation is high and released later when demand spikes, helping improve grid reliability while reducing reliance on dirtier and more expensive power sources.

The pressure is expected to grow as AI data centers continue to expand and consume large amounts of electricity. T1 is betting storage demand will accelerate as utilities, developers, and large power users look for flexible ways to keep power available.

Rystad Energy projects the U.S. utility-scale battery storage market will expand from 45 gigawatt-hours installed today to 143 gigawatt-hours by 2035.

The move highlights growing business opportunities in domestic manufacturing and energy infrastructure as demand increases for resilient, lower-cost, scalable power.

What's being done?

Rather than treating KORE as a simple standalone purchase, T1 is folding the deal into a broader energy platform. The company already has a solar panel assembly factory near Dallas and is developing a solar cell factory outside Austin, creating a domestic manufacturing base that could pair with KORE's storage expertise.

That combination could allow T1 to sell broader generation-and-storage packages to customers that want a single provider, especially commercial and industrial buyers facing rising electricity demand, volatile energy costs, and reliability concerns.

The acquisition also reflects a broader effort to build more of America's energy supply chain at home. Expanding U.S.-based solar, battery, and storage projects can strengthen energy security while keeping more jobs, economic value, and technical expertise in the country.

"We believe that NRI's track record, established customer relationships, and strategic focus on battery energy storage systems will be complementary to T1's mission of building domestic solar and battery supply chains to invigorate America with scalable, reliable, and low-cost energy," T1 Energy chairman and CEO Dan Barcelo said.

KORE Power president and CEO Jay Bellows said the combined company is expected to provide customers with "a one-stop solution for generation, storage, system design, and ongoing operations."

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