Data centers become "killer application" for new power transformer tech

AI Data Centers Drive Investment in Solid-State Transformer Technology

Data centers have become the largest driver of a surging electricity demand that is straining US power grids. But the AI data center boom has also accelerated investment in a technology that could provide a silver lining for everyone — solid-state power transformers that replace industrial-age technology with modern power electronics.

The Limits of Conventional Transformer Design

Power grids currently rely on conventional transformer technology that is painstakingly assembled by hand and has a fundamental design dating back to the 1880s. Two copper wire coils manually wound around a steel core create electromagnetic fields that help step up voltage levels of alternating current electricity for long-distance transmission or step down voltage levels for the electricity use of homes and businesses.

The largest power transformers cannot be mass-manufactured but are instead custom-built for each utility company’s electrical substations.

Supply Constraints and Grid Expansion Delays

Manufacturing constraints, coupled with the scramble to upgrade US power infrastructure, have meant utility companies and other customers must wait up to several years for delivery of new power transformers. That not only hinders power grid infrastructure expansion needed to support growing electricity demand, but also delays the process of replacing aging power transformers.