Phinergy Stock Surges 180% Amid Pivot to U.S. Data Center Market
28 July, 2025
Israeli clean energy firm pivots to U.S. data center market with aluminum-air backup systems, triggering sharp stock rally
Phinergy’s stock surged by 180% over the past month on the Tel Aviv Stock Exchange, driven by a new business strategy that shifts the company’s focus to the data center market—especially in the U.S., where investment in the sector is skyrocketing into the trillions of dollars. Phinergy has developed a clean, zero-emission power generation technology based on a reaction between aluminum and air. In recent years, it operated primarily in the electric vehicle and telecom tower backup markets. In early July, as part of a fundraising effort, the company presented a new strategy to investors: supplying clean backup systems to data centers to ensure uninterrupted power during grid outages—an alternative to diesel-based generators.
According to its investor presentation, Phinergy is currently in talks with a major cloud provider and is seeking to expand discussions with additional industry players. The company now has two primary partners supporting its new strategy. The first is Rosendin Electric, a major U.S.-based electrical infrastructure contractor with annual revenues of approximately $3 billion. Rosendin has a strong presence in the data center market and is reportedly involved in about 75% of new construction projects. As part of the partnership, Rosendin will offer Phinergy’s clean backup system to data center clients and provide engineering support to help scale the system’s capacity to megawatt levels—critical for meeting the demands of this high-performance market.
Phinergy has identified the U.S. as its key target market and plans to establish a subsidiary and manufacturing operations on American soil. This will help the company avoid import tariffs and forge partnerships with local stakeholders. Estimates suggest that by 2030, the U.S. will see between $2 trillion and $2.5 trillion invested in new data center projects. Amid this construction boom, there is growing demand for innovative clean energy solutions to power the energy-hungry infrastructure.
Backup Systems: A Billion-Dollar Market
Power backup systems are a critical component in every data center, designed to ensure uninterrupted power in the event of outages, failures, or grid overloads. A typical modern data center includes backup layers combining batteries (UPS – Uninterruptible Power Supply) for immediate response, and diesel or gas generators that kick in after a few seconds to maintain long-term operations. In recent years, advanced technologies have gained traction—such as Battery Energy Storage Systems (BESS), fuel cell-based solutions, and integration with renewable energy sources.
These systems are essential: even brief outages can disrupt critical services, cause data loss, and result in major financial and reputational damage. Market estimates suggest the data center backup power market is worth $7–10 billion annually, with rapid growth driven by rising demand for high availability in cloud infrastructure and AI workloads.
A Clean Alternative: Aluminum-Air Power Technology
Phinergy’s core technology is based on aluminum-air energy systems, which generate electricity through a chemical reaction between aluminum, water, and oxygen from the ambient air. This process produces zero carbon emissions, offering a clean and sustainable alternative to conventional fossil fuel-based power sources. The system is lightweight, compact, and scalable, making it particularly suitable for backup power in data centers, where reliability and environmental standards are increasingly critical. Unlike traditional batteries, Phinergy’s solution does not require frequent recharging and can deliver extended backup durations with minimal environmental impact.
Earlier this week, Phinergy announced a second major partnership aimed at strengthening its foothold with major cloud players. According to a filing with the Tel Aviv Stock Exchange, the company will conduct a funded pilot with the NetZero consortium, which will install Phinergy’s system at one of its data centers to validate the technology and promote it as an alternative solution in the sector. Following the announcement, Phinergy’s stock jumped an additional 36%.
Net Zero Innovation Hub for Data Centers is a global European-led consortium that brings together leading players in the data center industry to advance carbon reduction and net-zero goals. Members include companies such as Google, Microsoft, Schneider Electric, Danfoss, Vertiv, and Data4. The consortium focuses on developing renewable backup power sources, tools for heat reuse measurement, and unified standards for environmental transparency. It also fosters collaboration with regulatory, industrial, and academic bodies to help shape the data center of the future—efficient, sustainable, and carbon-neutral.
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