Investors are channeling significant capital into solid-state transformer (SST) startups to address the escalating energy requirements of AI data centers.
Heron Power raised $140 million in a Series B round in February 2026. DG Matrix secured $60 million in a Series A round during the same month. These investments follow an $80 million Series A round closed by Amperesand in late 2025.
These companies develop semiconductor-based systems to replace traditional, bulky iron-core transformers. This technology significantly reduces the physical footprint of power conversion equipment. The systems also minimize energy loss to lower operational costs for hyperscale facilities.
This funding surge targets a foundational component of digital infrastructure that has remained an industry standard for over a century. The transition aims to optimize the power-hungry infrastructure supporting the global AI boom.