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A new startup is looking to modernize the power infrastructure behind the world’s rapidly expanding data centers.

Hyperscale Power, a company developing solid-state transformers, has secured about $5.4 million (€5 million) in early funding from venture capital firms World Fund and Vsquared Ventures. The investment comes amid broader industry momentum, with the solid-state transformer sector recently attracting approximately $280 million in new funding.

The technology aims to replace conventional iron-core transformers that have been widely used in power systems for more than a century. Solid-state transformers rely on advanced power electronics, which can significantly reduce size while improving efficiency and enabling greater control over power flows.

According to the company, a prototype developed by co-founder and CEO Daniel Rothmund during his doctoral research at ETH Zurich demonstrated efficiency of approximately 99.1%. The compact design could help address increasing energy and space constraints faced by large-scale data centers.

As artificial intelligence workloads continue to drive rapid expansion of cloud infrastructure, data centers are requiring ever larger power capacities. Efficient power conversion and distribution technologies are becoming increasingly important as operators seek to reduce energy losses and optimize facility design.

Hyperscale Power plans to use the new funding to further develop and miniaturize its transformer technology, targeting applications in large data center environments where space efficiency and energy performance are critical.

Industry analysts note that improvements in semiconductor materials and power electronics are accelerating the development of solid-state transformers, which could play a growing role in future power grids and high-demand computing facilities.

Source: newsbytesapp.com