Data centers have become the largest driver of surging electricity demand straining US power grids, but the AI boom is accelerating investment in solid-state power transformers. Conventional transformers, based on 1880s technology, require custom hand-assembly and face delivery waits of several years. Solid-state transformers use high-frequency semiconductor switching with materials like silicon carbide, enabling mass manufacturing, smaller size, modular design, and all-in-one functionality.

Tech companies building AI data centers are adopting direct current (DC) power architectures for energy-hungry AI chips. Solid-state transformers can directly convert AC grid power to DC without separate conversion equipment. "It's kind of this one magic box that eliminates a lot of the infrastructure," said Srdjan Lukic, professor at North Carolina State University.

Data centers are the "killer application for solid-state transformers right now," Lukic told Ars. Companies Amperesand, Heron Power and DG Matrix have raised over $280 million to commercialize the technology. Solid-state transformers reduce copper needs and physical footprint. NC State's 1 MW system underwent field testing at EPRI's Lenox, Mass., test site. Long-term commercialization could ease broader transformer supply shortages for grid upgrades.