The iron-core transformer, a century-old technology, plays a crucial role in powering electrical grids and artificial intelligence (AI) companies. Despite its reliability, mounting demand for data centre energy and the rise of renewable energy sources are pushing this outdated tech to its limits. A modern alternative, the solid-state transformer, is emerging as a timely solution.
Recent months have seen startups targeting solid-state transformers secure $280 million in funding, driven by the technology’s potential to reduce the number of components required in data centres, enhance grid stability, and minimise the physical space needed for power-conversion systems.
Hyperscale Power, a player in this evolving market, claims to have developed an exceptionally compact transformer. Co-founder and CEO Daniel Rothmund suggests that their system’s size is unprecedented. Hyperscale recently raised €5 million in a seed round, led by World Fund and Vsquared Ventures, to develop a prototype of this advanced transformer.
The solid-state transformer market has quickly become competitive, with players like Amperesand, DG Matrix (backed by industrial giant ABB), and Heron Power, founded by a former Tesla executive and supported by prominent venture capitalists, collectively securing over $330 million. Although Hyperscale appears to be entering a crowded field, Rothmund and co-founder Sami Pettersson have substantial prior experience with the technology. Rothmund notably designed a 99.1% efficient solid-state transformer during his PhD at ETH Zürich.
Unlike traditional transformers, solid-state versions are smaller and more efficient, a crucial advantage as data centres demand greater power densities. For instance, Nvidia’s latest server racks draw over 100 kilowatts, with plans for future racks capable of hitting 1 megawatt—enough to power approximately 1,000 homes. This surge in power requirements will necessitate significantly larger transformers and rectifiers, often exceeding the size of the server racks themselves.
Given these escalating demands, Rothmund argues that the adoption of solid-state transformers is becoming essential for data centre development. He warns that if solid-state transformers are not ready soon, the ability to scale data centres may be hindered, indicating that the arrival of this technology is no longer a matter of ‘if,’ but ‘when.’ Thus, as AI and data centres continue to grow, the push for innovative, efficient power solutions will only intensify.
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