Hyperscale Power Raises €5M to Revolutionize 140-Year-Old Transformer Tech for AI Data Centers

Hyperscale Power, a innovative startup, has secured a €5 million seed round to develop next-generation solid-state transformers.

The funding, led by World Fund and Vsquared Ventures, will support the creation of a prototype that promises to be smaller than any existing solutions.

Challenging 140 Years of Transformer Dominance

Traditional iron-core transformers, invented over 140 years ago, have powered the electrical grid reliably but are increasingly clunky amid surging data center demands.

These outdated devices struggle with the skyrocketing power needs of AI infrastructure, where racks now consume over 100 kilowatts and future ones may hit 1 megawatt.

The Rise of Solid-State Transformers

Solid-state transformers use electronics to operate at tens of kilohertz frequencies, slashing size and component counts while boosting grid stability.

Co-founder and CEO Daniel Rothmund, who built a 99.1% efficient prototype during his PhD at ETH Zürich, claims their system will be the smallest yet.

The broader market has heated up, with solid-state startups raising over $330 million collectively and $280 million in recent months alone.

Competitors like Heron Power, backed by Andreessen Horowitz, and DG Matrix with ABB investment, highlight the crowded yet critical race.

Rothmund warns that without these innovations, data center scaling for AI will slow dramatically.

Looking ahead, Hyperscale Power aims to enable hyperscale operators to meet aggressive power density roadmaps essential for the AI boom.

This shift not only shrinks footprints but paves the way for better renewable integration and battery support in modern grids.