Prior to the series' events, Prometheus Halifax was conducting a extensive researching involving Max's T.U.R.B.O. Energy. In the process, he found out about Max and Steel's true identities and also the alien origins of Max's energy. The product of this research was Terror Energy, created especially to assist the Nexus legion to impose a new world order on Earth.
After Prometheus obtained a portion of Max's energy, he synthesized it and created Terror Energy. He later on experimented it on himself, when Max and La Fiera had invaded his building, and as result, he becomes a monster with Terror Energy based powers. Despite Max's best efforts to take Terrorax down, he defeated Max and his friends with ease. After his crushing defeat, Terrorax unsleashes three Terror Energy powered assassins: Night Howl (a technologically enhanced predator), Snare (a lethal assassin robot who executed his own maker) and Monstro (an horryfing product of science) to kill Max and his friends.
Eventually, they are defeated but in exchange Max and his team manage to discover Terrorax's secret hideout, where he was planning to permanently deactivate Copper Canyon's technology with his Terror Energy. Terrorax sends his trio of assassins, but they are once again defeated. In the process, he manages to disable the technology, but Max later on reverts the situation and eventually defeats Terrorax after the forced creation of Turbo Armor Mode. The base starts to crumble and Max and his team rescue Team Terror and take the Terror Energy Generator with them.
Like Max's T.U.R.B.O. Energy, the Terror Energy enhances the physical capabilities of the user, making him or her stronger and more agile than an average individual. It also enhances its stamina, allowing the user to battle for hours without needing to recover.
The energy is also shown to be highly destructive towards technology, like Max's equipment, as seen when Terrorax easily destroyed Max's power gloves or when Terrorax defeated Tempestra in seconds by just holding her with his hands. According to Steel, the Terror Energy drains all the power of the user or gear by desestabilizating it on a molecular level.
If the user is charged a second time with Terror Energy, the individual will become much stronger and agile and its stamina will be enhanced even more. Additionally, the user's appearance changes drastically, as the energy appears to be "sparking" on the user's body and its armor or anything that the user is using gets darker colors, such as black and dark grey, and shining pink lines.
- Night Howl
- The Terror Energy has the ability of destroying electronic devices, similar to Max's blue T.U.R.B.O. Energy.
- It is unknown if the Terror Energy is capable of mutating humans by being directly exposed to them, as Prometheus Halifax, the only human who tested the energy on himself, was wearing an armor that channeled it through his body, thus causing his mutation.