Zach Dell's Base Power raises $1 billion in latest financing round

Oct 8 (Reuters) - Base Power said on Wednesday that it had raised $1 billion in its latest funding round, as it looks to ramp up its business of leasing batteries to homeowners to meet rising power demand.

The round valued the Texas-based company at $3 billion, pre-money, according to a source familiar with the matter.

The startup offers battery systems to homeowners that can be used as a backup for a monthly fee and sells stored power to utility networks during peak demand.

With AI data centers using large portions of grid capacity in several U.S. states, electricity demand has surged, putting generation and storage in the spotlight.

The company is led by Zach Dell, who is the son of Dell Technologies' DELL.N founder and CEO Michael Dell.

Since launching in 2023, Base Power has deployed over 100 MWh of residential battery capacity and is building its first factory in downtown Austin.

"This factory in Austin is our first, and we're already planning for our second," co-founder and former Anduril and SpaceX executive Justin Lopas said in a statement.

The financing was led by venture capital firm Addition and included investors such as Valor Equity Partners, Lightspeed, Andreessen Horowitz, Ribbit, CapitalG and Elad Gil.

Thrive Capital and 1789 Capital, a venture capital firm backed by Donald Trump Jr., also participated in the round.