Shoals Technologies Group (Nasdaq: SHLS) announced that manufacturing and deliveries are underway for a 1.1 GW grid-connected battery storage project at a hyperscale data center, developed in partnership with ON.energy.

According to a press release, the project is described as the largest grid-connected battery installation in the United States upon completion. Shoals expects to manufacture approximately 360 of its PowerHub systems at its Tennessee facility for the initial phase of the project. Deliveries for that phase are complete, with commissioning expected to begin in early Q4 2026.

The PowerHub units are integrated with ON.energy's medium-voltage AI UPS system, providing DC electrical architecture intended to support power infrastructure for AI data centers. Deliveries to additional phases of the project are described as on schedule.

"Our teams in Tennessee are building, testing, and shipping products that are going directly into mission-critical energy infrastructure," said Brandon Moss, CEO of Shoals.

ON.energy Chief Operating Officer Dax Kepshire cited Shoals' track record in DC electrical systems and domestic manufacturing capacity as reasons for the partnership. "Together, ON.energy and Shoals are delivering the largest battery project in the United States, in record time," Kepshire said.

Shoals and ON.energy have also expanded their collaboration to include multiple additional project sites across the United States, though specific details on those projects were not disclosed.