Fluence Energy (FLNC)

[winston]

not vested

AI’s soaring electricity demand far exceeds the conventional power grid’s ability to meet it. So, AI companies are finding all kinds of alternatives and workarounds. The urgency of the situation and the astronomical sums involved demand it.

This is all bullish for power infrastructure firms like Fluence Energy (FLNC).

Fluence is in the BESS business.

BESS stands for Battery Energy Storage Systems. A BESS is essentially a giant battery. It stores energy from sources such as wind and solar, or from conventional fossil fuels.

This big battery hardware is paired with software that actively decides when to discharge electricity into the grid or to a large power user such as a data center.

BESS technology is a critical component of energy infrastructure in areas that can generate substantial solar and wind energy.

As the world builds more renewable energy infrastructure, the need for storage alongside it grows. You can’t run a grid on solar and wind alone without having storage systems that can supply power when the sun isn’t shining, and the wind isn’t blowing.

That’s where BESS comes in. McKinsey estimates BESS capacity to grow between 2-2.5x over the next 4 years.

Fluence is a $3.4 billion builder and operator of BESS. Its customers are utility firms and data center operators currently in the “mad dash” to get data centers up and running to meet soaring market demand.

Fluence’s 2026 revenue guidance sits at $3.2 billion to $3.6 billion. Its backlog is at $5.6 billion. In other words, the company’s contracted future revenue exceeds its current market cap. We told you demand for electric power is booming.

As we’ve covered in these pages, the AI Power Consumption boom is driving big returns in E&C stocks, Power Grid Upgrade stocks, and energy pipeline stocks. We expect it to drive strong returns in the BESS business as well.

Source: Money & Megatrends