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ON.energy has signed a 5-gigawatt transformer supply agreement, considered the largest dedicated transformer deal in the United States, to support medium-voltage infrastructure for AI data centers and renewable energy applications.

Under the agreement, Prolec GE will manufacture and deliver custom three-phase pad-mount transformers designed for ON.energy’s medium-voltage architecture. The equipment will be integrated into the company’s AI UPS™ systems, which are engineered to stabilize fast-ramping AI electrical loads and improve interconnection reliability. Deployment is expected to begin in 2026 across grid-connected and behind-the-meter AI data center campuses.

The announcement comes as nationwide power demand from hyperscale and AI-driven data centers accelerates, with expected growth in the tens of gigawatts this decade. AI clusters are emerging as the highest-density and fastest-ramping loads on the U.S. electric grid, prompting operators to prioritize grid-safe designs and predictable power performance.

“This agreement ensures we have the infrastructure needed to continue deploying grid-safe data centers at the pace the market requires,” said Dax Kepshire, President of ON.energy’s Data Center division.

According to the company, the procurement marks a key milestone in supporting more responsible integration of AI workloads through controlled ramp rates, improved load stability, and enhanced protection during voltage disturbances. The transformers are expected to support customers building AI campuses that interconnect faster and operate with greater reliability while reducing grid impacts.

Source: businesswire.com