Hyperscale Power Raises €5M to Transform AI Energy

An Energy Challenge Revealed by the Rise of AI

As computing power continues to grow, electrical transformers, long considered invisible infrastructure, are facing unprecedented constraints. The increase in data centers dedicated to artificial intelligence, the densification of server racks, and the electrification of industrial infrastructures place the conversion and distribution of electricity at the forefront of concerns for data center operators.

In this context, new industrial players are seeking to adapt electrical infrastructure to the needs of the digital economy. In Zurich, the startup Hyperscale Power is developing solid-state transformers designed to meet the energy demands of data centers, fast charging infrastructures for electric vehicles, and high-power industrial systems. The goal is to rethink a technology that is over a century old to adapt it to the constraints of the AI era.

Energy Infrastructure: A Key Issue for AI

The rapid increase in computing capabilities is profoundly transforming the energy architecture of digital infrastructures. Data centers now consume unprecedented volumes of electricity, a trend that is expected to intensify in the coming years. Major cloud operators, often referred to as hyperscalers, plan to invest over $2 trillion in AI-related infrastructure by 2030.

Behind these investments, each new generation of data centers requires greater electrical capacities and more efficient energy conversion systems. Server racks are becoming increasingly powerful, with some infrastructures already exceeding 100 kilowatts per rack, and architectures envisioning racks eventually reaching one megawatt, equivalent to the consumption of a thousand households. At this level of energy density, the distribution and conversion of electricity become significant technical challenges.

An Essential Yet Under-Renewed Technology

Invented in the late 19th century, electrical transformers allow for the adaptation of voltage levels to transport electricity from high-voltage networks to industrial and computing facilities. This technology still largely relies on iron-core transformers, known for their robustness and reliability. However, in contemporary digital environments, their characteristics are beginning to show limitations.

Their size and weight can become constraints in installations where every square meter is optimized. Their energy efficiency, while high, remains improvable. Most importantly, these systems were designed for relatively stable electrical flows, whereas modern digital infrastructures operate with much more dynamic loads. As data centers increase in density, it is not uncommon for electrical infrastructures to occupy a volume comparable to, or even greater than, that of the computing equipment they power.

A New Generation of Transformers

In response to these constraints, a new technological approach is attracting the interest of industrial players and investors: solid-state transformers. Unlike conventional transformers, these systems rely on power electronics and the use of semiconductors capable of converting electricity at high frequencies. This architecture allows for a significant reduction in the size and weight of equipment while improving energy efficiency.

The transformers developed by Hyperscale Power achieve a conversion efficiency of around 98.5%, while adopting a significantly more compact architecture than traditional systems. These features pave the way for more flexible management of electrical power in digital infrastructures. Beyond efficiency gains, these transformers enable a more dynamic management of energy flows. They can facilitate the integration of new electrical architectures in data centers, particularly those based on direct current, and improve interconnection with renewable energy sources or storage systems.

An Innovation Driven by a New Industrial Dynamic

The interest in solid-state transformers is part of a broader transformation of the energy system. The rise of artificial intelligence, the rapid electrification of transport, the increasing integration of renewable energies, and the modernization of electrical grids are creating a heightened demand for systems capable of converting and distributing electricity more flexibly. In this context, several startups and industrial players are exploring new electric conversion architectures. According to industry estimates, companies working on solid-state transformers have already raised over $330 million.

A Deep Tech Emerging from the Swiss Ecosystem

Founded in 2025 in Zurich by Daniel Rothmund and Sami Pettersson, two specialists in power electronics, Hyperscale Power develops solid-state transformers intended for data centers, fast charging infrastructures for electric vehicles, and high-power energy installations. The company leverages the Swiss engineering ecosystem and the proximity of ETH Zurich, one of Europe's leading research centers in electrical technologies and power electronics.

Hyperscale Power has announced a €5 million Seed funding round, co-led by World Fund and Vsquared Ventures. This funding will enable the young company to structure its initial research infrastructures, open a laboratory in Zurich, and accelerate the development of prototypes of its solid-state transformers.