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When DG Matrix starts shipping its commercial solid-state transformers next month, it'll be the first among a handful of startups racing to market.

Why it matters: Hyperscalers are seeking next-gen transformers to support power-hungry AI data centers. 

Zoom in: "We're the first ones there. We have a multi-year lead over everyone," says DG Matrix CEO Haroon Inam, who was previously the CTO of grid-enhancing tech startup Smart Wires. 

Inam says DG Matrix's devices,  built in a manufacturing plant in Lahore, Pakistan, will receive UL certification in Q1 2026. 

Catch up quick: Founded in 2022, DG Matrix is the culmination of decades of research at North Carolina State University, led by CTO Subhashish Bhattacharya, an electrical and computer engineering professor. 

Inam and Bhattacharya say the company was born out of a five-hour car ride, which resulted in multiple product ideas and commitments from 20 engineers. 

DG Matrix has deployed solid-state transformers in three pilots, including grid customer PowerSecure,  a West Coast fuel cell firm, and utility Duke Energy.

In March, the Raleigh, North Carolina-based startup raised a $20 million seed round led by Clean Energy Ventures, and including ABB, Cerberus Ventures, Chevron Technology Ventures, and Piedmont Capital. 

How it works: Solid-state transformers (or SSTs) use semiconductor materials like silicon carbide to control the flow of electric power more efficiently, more flexibly, and in a more compact space than traditional transformers.

DG Matrix says its SSTs have multiple ports to manage DC and AC sources from generation and storage, giving the SSTs more flexibility, lower operating and capital costs, and a smaller footprint. 

State of play: DG Matrix is one of several startups and big companies rushing to get SSTs to market to manage power for AI data centers. 

Startup Amperesand aims to deploy 30 MW of its gear across five commercial pilot projects in 2026, the majority with hyperscaler customers, and just closed an $80 million Series A round. It plans to make its SSTs more widely commercially available and industry-compliant by 2027.

Tesla vet Drew Baglino launched solid-state transformer company Heron Power with a $38 million Series A round. It's targeting an internal pilot in 2026 and partner installations in early 2027.

Power gear giant Eaton earlier this year said it plans to acquire solid-state transformer startup Resilient Power Systems.

The big picture: Soaring electricity demand has caused a major backlog for traditional transformers. 

Meanwhile, hyperscalers — with their aggressive data center timelines, willingness to test new tech, and deep pockets — have become the key customers helping commercialize SSTs. 

What's next: DG Matrix is building a 54,000-square-foot production facility in Raleigh, which it says will start making its SSTs by Q3 2026. 

The bottom line: The world's first commercial solid-state transformers will soon be on the market.

Exclusive: DG Matrix to deliver first solid-state transformers

The tech has been in development for decades and is finally coming to market.

Illustration of a digital power grid map forming a dollar sign.

When DG Matrix starts shipping its commercial solid-state transformers next month, it&#x27;ll be the first among a handful of startups racing to market.Why it matters: Hyperscalers are seeking next-gen transformers to support power-hungry AI data centers.

Exclusive: DG Matrix to deliver first solid-state transformers

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