Shoals Technologies Group, Inc. (SHLS) Partners with ON.energy for AI Data Center Opportunities Backed by Record Backlog

Shoals Technologies Group, Inc. (NASDAQ:SHLS) is one of the best solar stocks to buy now. On February 26, Shoals Technologies Group, Inc. (NASDAQ:SHLS) announced a strategic collaboration with ON.energy for the deployment of multiple gigawatts of critical power systems into the AI data center market. The two are joining forces at a time when AI and cloud workloads are increasingly accelerating data center growth and raising the bar for power reliability. Shoals is well-positioned to support growth by scaling its production capacity through an expansion into a 638,000-square-foot manufacturing campus in Portland.

“As AI and cloud computing drive unprecedented growth in energy demand, data centers are under pressure to secure long-term, reliable power, rapidly and at scale,” Brandon Moss, CEO of Shoals, stated.

The push for opportunities in the AI and data center market comes on the heels of an exceptional 2025, during which the company achieved a record backlog and awarded orders totaling $747.6 million. The company achieved a 39% increase in fourth quarter revenue to $148.3 million, driven by an increase in sales volumes from higher demand for products to meet the utility scale in solar projects. Gross profit in the quarter increased to $46.9 million. Net income in the quarter increased to $8.1 million from $7.8 million the same quarter. Full-year revenue was up 19% to $475.3 million, while net income increased to $33.6 million from $24.1 million in 2024. Shoals Technologies Group (NASDAQ:SHLS) is a leading provider of electrical balance-of-system solutions for solar energy projects, specializing in components such as cable assemblies, combiners, and disconnects that connect solar panels to the grid. Their products increase installation efficiency and reliability for utility-scale solar and battery storage projects.

While we acknowledge the potential of SHLS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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