Hyperscale Power is the latest startup to challenge 140-year-old transformer tech

Source: TechCrunch

Background

The iron‑core transformer is a 140‑year‑old technology that underpins both the electrical grid and AI companies. While clunky, it is reliable, which explains its continued use. However, as data‑center power demand soars and batteries and renewables claim larger portions of the grid, the aging technology may be reaching its limits. Its electronic replacement—the solid‑state transformer—could be entering a pivotal moment.

In recent months, startups specializing in solid‑state transformers have raised $280 million [TechCrunch]. The technology promises to reduce the number of components needed by data centers, improve grid stability, and shrink the footprint of power‑conversion equipment.

Hyperscale Power’s Approach

Hyperscale Power claims it can make transformers even smaller. “We haven’t seen something that is as small as our system will be,” said Daniel Rothmund, co‑founder and CEO, to TechCrunch.

To build a prototype, Hyperscale recently secured a €5 million seed round led by World Fund and Vsquared Ventures, the company disclosed exclusively to TechCrunch.

Both Rothmund and co‑founder Sami Pettersson have been working on solid‑state transformer technology for years. Rothmund earned his PhD at ETH Zürich, during which he designed and built a 99.1 % efficient solid‑state transformer.

Technical Edge

All solid‑state transformers are smaller than their iron‑core counterparts, but Hyperscale aims to push the limits further by operating at much higher frequencies. Power entering the transformer is stepped up to the tens‑of‑kilohertz range, transformed to the required voltage, and then stepped back down to the necessary frequency. This high‑frequency operation enables a more compact design.

Market Landscape

The solid‑state transformer market has evolved from near‑nonexistent to increasingly crowded:

• Amperesand – incubated by Temasek’s early‑stage fund [TechCrunch]
• DG Matrix – backed by industrial giant ABB [TechCrunch]
• Heron Power – founded by former Tesla executive Drew Bagnlino and supported by Andreessen Horowitz [TechCrunch]

Together, these companies have raised over $330 million according to PitchBook.

Implications for Data Centers

Size is becoming increasingly critical as server‑rack power density rises. The latest Nvidia racks consume more than 100 kW, and the company is preparing for 1 MW racks—enough to power up to 1,000 homes. At such scales, the transformers and rectifiers needed to condition electricity for servers would become larger than the racks themselves. “It’s more than twice as large as the server racks,” Rothmund noted.

The aggressive roadmaps of AI firms and data‑center developers are making solid‑state transformers almost a necessity. “It will actually slow down the progress in scaling up data centers if you don’t have solid‑state transformers ready quite soon,” Rothmund warned. “It’s not a question if solid‑state transformers will come, it’s a question when they will come.”