Micro cap Xos more than triples in a single day on new energy storage system
The new energy storage system is designed for data centers / Photo: Facebook / Xos
Shares of Xos, a micro-cap manufacturer of electric trucks and mobile charging solutions, soared 235% on Wednesday after the company unveiled a new energy-storage system designed to power data centers without relying on the grid. Whereas connecting new facilities to the U.S. power grid can take years, Xos says its systems can be deployed within days.
Details
Xos stock jumped 235% on the Nasdaq on Wednesday to $7.46 per share, a two-year high. The rally was sparked by the company's announcement of the launch of its Power Hub family of energy-storage systems, which will supply electricity to data centers, industrial sites, and mission-critical facilities.
Implications of new system
The International Energy Agency projects that global data-center electricity consumption will roughly double by 2030, with AI as the primary driver. At the same time, connecting new facilities to the U.S. power grid can take 3-7 years, causing data centers to lose billions of dollars in delayed capacity, according to Xos. As a result, behind-the-meter power has shifted from a backup option to a strategic necessity, the company said.
According to the press release, the Power Hub can begin supplying power within days of arriving on site. The system is also designed to absorb load swings and improve the efficiency of power generation. Xos says the platform is scalable and can support anything from a single facility to a multimegawatt campus. The Power Hub is built on the same battery, power electronics, and controls architecture as its Xos Hub mobile EV charging platform, meaning the technology has already been deployed in commercial applications.
“The single biggest constraint in US industry right now is the inability to deliver power where it’s needed, when it’s needed,” said Xos CEO Dakota Semler. “This is not a battery. It is a deployable power plant,” he added.
What Wall Street says
Even after Wednesday's rally, the consensus Wall Street target price was 46% below the market price. The company is covered by two analysts. One has a “buy” call on the stock, while the other rates it “hold.”
