The iron-core transformer, a 140-year-old technology, supports both the electrical grid and AI companies. Despite their clunky nature, they remain reliable, explaining their continued use. However, with the surge in data center power demand and the growing presence of batteries and renewables, this old technology may be reaching its limits. Fortunately, the electronic alternative, the solid state transformer, seems poised for its breakthrough.
In recent months, startups specializing in solid state transformers have raised $280 million. This technology aims to reduce the number of components required by data centers, enhance grid stability, and minimize the footprint of power conversion equipment.
Hyperscale Power claims it can reduce the size even further. “We haven’t seen something as small as our system will be,” said Daniel Rothmund, co-founder and CEO of Hyperscale Power, to TechCrunch.
To create a prototype, Hyperscale recently secured a €5 million seed round led by World Fund and Vsquared Ventures, as exclusively revealed to TechCrunch.
The solid state transformer market has rapidly grown from almost nonexistent to competitive in recent years. Among the players are Amperesand, incubated by Temasek’s early-stage fund; DG Matrix, with industrial giant ABB as an investor; and Heron Power, founded by former Tesla executive Drew Bagnlino and backed by Andreessen Horowitz. Collectively, they have raised over $330 million, according to PitchBook.
Though Hyperscale may seem late to the scene, Rothmund and his co-founder Sami Pettersson have been long developing the technology. Rothmund notably completed his PhD at ETH Zürich by designing a 99.1% efficient solid-state transformer.
All solid state transformers are smaller than their iron-core counterparts, but Hyperscale aims to outpace others by constructing a transformer that operates at much higher frequencies. Initially, power enters the transformer and is stepped up to tens of kilohertz, transformed into the required voltage, and then stepped back down to the necessary frequency.
The importance of size is increasing in data centers due to the rising power density of server racks. The latest Nvidia racks consume over 100 kilowatts, with preparations underway for 1 megawatt racks capable of powering up to 1,000 homes.
At such scales, the size of transformers and rectifiers needed for server electricity preparation will grow significantly. “It’s more than twice as large as the server racks themselves,” Rothmund noted.
The ambitious plans by AI companies and data center developers have made solid state transformers almost essential. “It will slow down the progress in scaling up data centers if solid state transformers aren’t available soon,” Rothmund stated. “The question is not if, but when, solid state transformers will come.”