Michael Dell’s son built a $13 billion home battery business—and he’s going on 30 years old

Zach Dell, son of the founder of Dell Technologies, Michael Dell, has launched a $13 billion home battery business called Base Power. Just weeks before his 30th birthday, Zach's company raised another $1 billion in a Series D funding round, increasing its valuation from $4 billion to $13 billion in less than a year. "We want to bring Base to every neighborhood in America over time," Zach told Fortune, acknowledging the massive potential of the residential retail electricity market, which is valued at about $200 billion in the U.S.

Three years old, Base Power has seen its customer base grow from one battery system installed daily to over 100 per day, with more than 30,000 customers to date. Earlier this year, the company opened its own battery manufacturing plant in Austin, Texas, with a larger second factory currently under construction and set for completion in 2027. Base Power initially started in Texas but has since expanded to Illinois.

The company's business model revolves around offering a comprehensive solution for home electricity and backup power through battery storage systems, contrasting the traditional gas generators that can cost upwards of $15,000. Base Power charges an installation fee of up to $695 and a flat monthly membership fee of $19, resembling a Costco membership model.

Zach argues that overall electricity charges are typically lower due to the savings from batteries returning power to the grid and providing power during outages, provided they do not exceed two to three days.

In the Series D round, Base Power attracted four co-leads: Ribbit Capital, Addition, Valor Equity Partners, and JP Morgan Chase’s Strategic Investment Group. Other major investors, including Thrive Capital, a16z, Lightspeed, Trust Ventures, and CapitalG, have also re-invested. Zach emphasizes that Base Power's investors are long-term oriented, considering the scale of the opportunity and the time required to execute.

Michael Dell, Zach's famous father, is not involved in Base but serves as a mentor, lending recognition that aids in fundraising. As the fifth wealthiest person in the world, following Elon Musk, Jeff Bezos, and the Google co-founders, Michael Dell's name undoubtedly helps Base Power attract investors.

With the growing demand for electricity due to the AI boom and strained electric grids nationwide, Zach believes Base Power benefits customers by strengthening local power grids and maintaining electricity supply during grid failures. The company charges batteries when grid prices are low and discharges them during high-demand periods. The new battery offers 39.2 kilowatt-hours of electricity, significantly more than its competitors.

Base Power recently opened its battery manufacturing plant in Austin and is planning to expand into more states, either by entering deregulated electricity markets or partnering with monopoly utilities. Zach mentioned the possibility of adjusting installation costs based on market signals as they enter different regions.