A new generation of startups is developing solid state transformers as an alternative to the iron-core transformer, a technology that has supported electrical grids for more than 140 years but may struggle to meet the rising power demands of modern data centers and renewable energy systems.
The traditional iron-core transformer remains widely used because of its reliability and durability. However, growing electricity consumption from data centers, along with the increasing role of batteries and renewable energy sources in power systems, is pushing the limits of existing infrastructure.
Solid state transformers, which use power electronics instead of large iron cores, are being explored as a possible replacement.
Over the past several months, startups focused on the technology have raised about $280 million in new funding.
Hyperscale Power Develops Compact Transformer Design
One of the newest entrants in the field is Hyperscale Power, a startup that says it is developing a transformer system smaller than existing solid state alternatives.
“We haven’t seen something that is as small as our system will be,” said Daniel Rothmund, co-founder and chief executive of Hyperscale Power.
The company recently raised a €5 million seed round led by World Fund and Vsquared Ventures to build a prototype of its system.
Rothmund said the company’s design aims to reduce the size of power conversion equipment used in data centers and other high-demand environments.
Growing Competition In Solid State Transformer Market
The solid state transformer sector has grown rapidly in recent years.
Companies working on the technology include Amperesand, which emerged from Temasek’s early-stage investment fund; DG Matrix, backed by industrial technology company ABB; and Heron Power, founded by former Tesla executive Drew Baglino and supported by venture capital firm Andreessen Horowitz.
According to data from PitchBook, companies in the sector have raised more than $330 million collectively.
Although Hyperscale Power is entering the market after several competitors have already secured funding, Rothmund said the company’s founders have been researching the technology for years.
Rothmund completed his doctoral research at ETH Zürich, where he designed and built a solid state transformer with an efficiency of 99.1%.
Higher Frequency Design Reduces Transformer Size
Solid state transformers are typically smaller than traditional iron-core devices.
Hyperscale Power says it can reduce the size further by operating its system at higher electrical frequencies.
In the company’s design, incoming electricity is converted to frequencies in the tens of kilohertz range. The system then adjusts the voltage before converting the frequency back to the level required for the electrical system.
Operating at higher frequencies allows smaller components to be used, reducing the overall size of the transformer.
Data Center Power Needs Drive Interest
The push for smaller power infrastructure is closely tied to the increasing electricity demand inside data centers.
Server racks used for artificial intelligence computing already consume large amounts of electricity.
Rothmund said some of the latest server racks developed by Nvidia use more than 100 kilowatts of power.
The company is also preparing systems designed for racks that could consume up to one megawatt of electricity.
That level of energy consumption is comparable to the power usage of as many as 1,000 homes.
As power requirements increase, the equipment needed to convert and distribute electricity within data centers also grows in size.
“It’s more than twice as large as the server racks itself,” Rothmund said, referring to the transformers and rectifiers used to prepare electricity for computing hardware.
Technology Seen As Necessary For Future Data Centers
Rothmund said the expansion plans of artificial intelligence companies and data center operators are increasing interest in solid state transformer technology.
According to him, the development of more compact and efficient transformers could become an important factor in scaling future data centers.
“It will actually slow down the progress in scaling up data centers if you don’t have solid state transformers ready quite soon,” Rothmund said.
“It’s not a question if solid state transformers will come, it’s a question when they will come.”
Featured image credits: rawpixel.com
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