Electrification and compute needs are scaling faster than the power infrastructure beneath them.

The iron-core transformer is 140 years old and still propping up the grid. But it is no longer good enough. AI compute, EV fast-charging, and renewables integration are placing demands on power infrastructure that this legacy transformer technology was never designed to meet.  Data centres alone are driving multi-gigawatt power needs. 

As a result, we are now seeing acute market urgency and infrastructure bottlenecks. The acute transformer supply gap means lead times for distribution units are stretching to 18-24 months or more. Meanwhile, data centre evolution is creating further demand. Hyperscale data centres are shifting toward high-density AI / HPC workloads that require 800V DC-native power. This is something conventional systems are too large and slow to support.  

Something must be done, urgently. Hyperscalers have committed over $2 trillion to AI infrastructure build-out by 2030. For example, OpenAI has revealed that it aims to add 1GW of compute per week in new capacity. Grid losses still waste about 6% of all electricity generated globally. The pressure on our power infrastructure is now structural and intensifying.

Hyperscale Power’s next-gen medium-voltage solid-state transformer (SST) is built for this new reality. It replaces legacy systems with SSTs built for the realities of modern loads.

Why Hyperscale’s tech is ready to meet demand 

Hyperscale Power has developed a proprietary SST that is roughly 10× smaller and uses c.90% less material than conventional transformer-rectifier systems. That is transformative for data centre operators. Their SST also has a clear edge in efficiency and emissions reductions. It achieves an energy-conversion efficiency of up to 98.5%, far higher than rival solutions. At the grid and data centre scale, even a 2% efficiency gain translates into millions of tonnes of CO₂ emissions avoided. 

Hyperscale Power’s SST is also the right solution at the right time because of a deeper shift in underlying economics and semiconductor maturity.

The transition from silicon to Silicon Carbide (SiC) semiconductors enables efficient medium-voltage operation and high-frequency switching that was previously economically unviable. At the same time, massive demand for SiC from the automotive sector has driven production scaling and is pushing costs down rapidly, with wafer costs projected to fall by around 50% by 2030.

This convergence of capability and cost unlocks a new system architecture. It means Hyperscale Power’s solid-state units can replace entire traditional power stacks with its single, integrated system that improves efficiency while also reducing system complexity and upfront CAPEX.

This is our core investment thesis: a technology with clear commercial pull, enabled by a structural inflection in the cost curve and capability, delivering measurable climate performance potential across critical growth sectors. By riding this learning curve, the Hyperscale Power product will get even better over the coming years.

The team: depth where it matters and an unrivalled talent moat

When we started looking into SSTs, the ETH power electronics ecosystem around Prof. Kolar immediately stood out. For decades, it has brought together the world's leading researchers on SSTs and broader power electronics. Daniel Rothmund was an integral part of it during his PhD.

Together with Sami Petterson, they wield a rare combination of a PhD from ETH Zürich and industrial expertise, giving them a deep technical understanding of the SST problem and how to solve it. Hyperscale Power’s base in Zurich, with close ties to ETH Zürich and Switzerland's precision-engineering ecosystem, is also a big advantage. It means the founders can tap some of the best technical talent in Europe as they build out their team. 

As Daniel says: "Our mission is to rethink how power is delivered to the systems driving the next industrial revolution.”    

What comes next

Hyperscale Power will use this €5M Seed funding to expand its lab and offices, accelerate prototype development, and hire the technical talent needed to move toward commercial deployment. R&D will remain in Switzerland, with production scale-up planned for a second European location.

The addressable opportunity in solid-state transformers is expanding rapidly. Hyperscale Power is a clear example of how Europe can create the technology behind an essential new infrastructure layer: they are developing the technology that will sit between energy supply and the systems defining the next industrial era. We are extremely proud to be backing Daniel and Sami as they tackle one of the most consequential bottlenecks in global infrastructure. 

If you have any questions or are interested in discussing further, please get in touch with Robin at robin@worldfund.vc.