Battery maker Eos lands data center deal, shares up 750% in LTM

Small-cap Eos Energy Enterprises, which makes zinc-powered batteries, has signed a partnership with a major data center developer, its CEO announced. The data center market holds significant potential for Eos Energy, whose shares have surged 750% over the last year, driven by growing demand for batteries amid the AI boom.

Eos Energy has signed a preliminary agreement with a major builder of data centers, CEO Joe Mastrangelo told Bloomberg in an interview. He did not disclose the name of the company. Eos Energy is working on several additional contracts with other data centers, Mastrangelo added, again without naming names. He claims that data center agreements account for about 30% of potential deals.

Data centers, which are in high demand against the backdrop of the rise of AI, consume vast amounts of electricity. Energy costs are their largest expense, and Eos’s energy storage systems help reduce those costs, Mastrangelo argues.

According to Bloomberg, Eos Energy shares rose 750% in the year to May 14. MarketWatch shows that as of today, May 15 (before the market open), the stock was up 884% over the last 12 months and 43% since the start of 2025.

Following the company’s first-quarter earnings, the eight analysts covering Eos Energy raised their average target price by 15% to $6.07 per share. The stock is currently trading above that level, having closed at $6.94 per share yesterday, May 14.

For 2025, analysts project Eos Energy will generate $167.3 million in revenue, according to Simply Wall St. That would mean a tenfold increase from the previous year, when it posted $15.6 million in revenue.

Eos Energy designs, manufactures, and deploys battery storage solutions. Its main product is based on its proprietary Znyth aqueous zinc batteries. They are more environmentally friendly and less prone to catching fire than lithium-ion batteries, which are notoriously difficult to extinguish once ignited.

Eos Energy manufactures its systems in the U.S. and sources only 9% of its materials from abroad. According to Bloomberg, this gives the company a competitive advantage amid Trump’s tariffs.

Eos Energy is currently working to expand its first production line and build a second one, partially funded by a $303.5 million loan from the U.S. Department of Energy. According to the CEO, the company has already received an initial tranche of $68 million, and negotiations over the remainder are proceeding “as normal,” even after the Trump administration’s announcement that it will not move forward with loans approved during Biden’s presidency.

According to the International Energy Agency, AI is expected to be the most significant driver of future electricity demand. The agency predicts that electricity consumption by data centers will more than quadruple by 2030. In the U.S., data centers are expected to account for nearly half of the growth in electricity demand through 2030.

These are favorable conditions for battery manufacturers, Bloomberg notes. For example, Eos Energy rival XL Batteries has already signed a deal with data center developer Prometheus Hyperscale.