Elevate Acquires Massive Battery to Power Virginia's Data Center Alley

BOSTON, MA – January 15, 2026 – In a move signaling a major investment in America's digital backbone, Elevate Renewables has acquired Prospect Power Storage, a 150-megawatt battery project poised to become the largest of its kind in the nation's largest power grid. The acquisition from Swift Current Energy places a critical piece of energy infrastructure in the heart of Northern Virginia, a region grappling with the voracious electricity demands of its world-renowned "Data Center Alley."

The project, already under construction in Rockingham County and slated for a mid-2026 launch, is designed to store and discharge 600 megawatt-hours of electricity—enough to power tens of thousands of homes. Its strategic importance is underscored by a 15-year contract with Dominion Energy Virginia, ensuring its role as a key asset in stabilizing the regional grid for years to come.

“The acquisition of Prospect Power underscores our commitment to building the energy infrastructure required to ensure continuous power for data centers,” said Joshua Rogol, Chief Executive Officer of Elevate, in a statement. “With its scale and strategic location within PJM, this project exemplifies the critical investments we are making to support the increased need for grid reliability and sustainability driven by growing power demand.”

The Insatiable Appetite of the Digital Age

The Prospect Power project arrives at a critical juncture for the PJM Interconnection, the grid operator managing the flow of electricity for 65 million people across 13 states and the District of Columbia. PJM is facing an unprecedented surge in demand, largely fueled by the proliferation of data centers, the rise of artificial intelligence, and the broader electrification of transportation and industry.

Recent forecasts from PJM project a staggering increase in peak electricity usage, with some estimates suggesting regional demand could grow by nearly 40 gigawatts by 2039. This surge is happening simultaneously with the retirement of traditional power plants, creating a potential gap between supply and demand that threatens grid stability. Industry reports have warned that without significant new resources like battery storage, the region could face an increased risk of power shortages and rising electricity costs.

Northern Virginia is the epicenter of this challenge. As the world's largest data center market, its power consumption is immense and growing exponentially. Utility-scale batteries like Prospect Power are seen as an indispensable solution. They act as giant rechargeable reservoirs for the grid, absorbing excess power when demand is low (such as overnight when wind generation is high) and injecting it back into the system in milliseconds when demand peaks. This rapid-response capability is vital for managing the fluctuating output of renewable sources and preventing blackouts during extreme weather or high-usage events.

“PJM is experiencing accelerating demand driven by AI, data center growth, and electrification,” Rogol added. “Prospect Power will provide the fast-responding, flexible capacity needed to manage peak loads and improve overall grid performance.”

A Strategic Play in a High-Stakes Market

The acquisition is a cornerstone of the growth strategy for Elevate Renewables and its parent company, ArcLight Capital Partners, a leading infrastructure investor with a deep portfolio in the energy sector. ArcLight has committed $150 million to Elevate, tasking it with developing and owning utility-scale battery resources, often co-located with existing power infrastructure to streamline development.

Elevate's strategy focuses on identifying and securing high-impact projects in critical U.S. power markets. Before the Prospect Power deal, the company announced a 15 MW/60 MWh battery project at the Arthur Kill Generating Station in Staten Island, set to be the largest in New York City. This pattern of targeting high-demand urban and industrial load centers demonstrates a clear and aggressive approach to building a formidable energy storage portfolio.

ArcLight, which has invested approximately $27 billion across 119 transactions since 2001, views battery storage as a transformative asset class. It is a key enabler of the energy transition, providing the reliability needed to integrate more wind and solar power while simultaneously supporting the digital economy's expansion. The firm's focus on electrification and data center infrastructure makes the Prospect Power project a perfect fit for its investment thesis.

Dominion's Clean Energy Mandate

For Dominion Energy Virginia, the 15-year power purchase agreement (PPA) for Prospect Power's full output is a crucial step toward meeting its ambitious clean energy goals. The Virginia Clean Economy Act of 2020 legally mandates that the utility transition to 100% clean energy by 2045 and deploy at least 2.7 gigawatts of energy storage by 2035.

To meet these targets and serve the booming demand in its territory, Dominion's latest resource plan calls for adding 4.5 gigawatts of battery storage over the next 15 years. The long-term PPA with Elevate provides Dominion with guaranteed access to a massive storage resource without the upfront capital cost of building it, while giving Elevate the long-term revenue certainty needed to secure financing for such a large-scale project.

This project joins a growing portfolio of storage assets for Dominion, which includes several pilot projects and facilities under development, such as the 50 MW storage site planned for Dulles International Airport. The utility is pursuing an "all-of-the-above" strategy, investing in solar, offshore wind, and storage while also exploring emerging technologies like iron-air batteries to ensure a resilient and reliable grid.

Navigating a Crowded and Complex Landscape

While the Prospect Power project represents a major win, it also highlights the complexities of developing large-scale energy infrastructure. The project is expected to be a significant boon for Rockingham County, generating millions in new tax revenue over its lifespan. However, the path to approval is not always smooth. An adjacent 150 MW battery project proposed by the original developer, Swift Current Energy, was recently denied a local permit, illustrating the potential for community and regulatory hurdles.

The competitive landscape within PJM is also intensifying. The grid operator's interconnection queue is flooded with proposals, including nearly 400 battery projects representing over 73,000 megawatts of potential capacity. Developers face long wait times and a complex approval process, making projects that are already under construction, like Prospect Power, exceptionally valuable.

Elevate's acquisition allows it to bypass many of these early-stage development risks and secure a powerful position in a market where speed and certainty are paramount. As the digital and clean energy transitions accelerate, the race to build, own, and operate the infrastructure that powers them will only become more competitive, making projects like Prospect Power essential anchors for the grid of tomorrow.