Data centers are grappling with a significant challenge: powering increasingly compact server racks using outdated technology. Traditional transformers, known for their size and heat output, are being outpaced by a new wave of solid-state transformers that promise enhanced flexibility and efficiency in power management.
One such innovative startup, DG Matrix, has successfully raised $60 million in a Series A funding round, as reported by TechCrunch. This investment was spearheaded by Engine Ventures, with participation from notable firms such as ABB, Cerberus Ventures, and Chevron Technology Ventures.
Recently, DG Matrix announced a partnership to supply its Interport device to Exowatt, a startup focused on creating solar-plus-storage solutions to ensure continuous electricity supply for data centers.
The Interport device functions as a power router, capable of managing connections up to 2.4 megawatts. For instance, it can integrate 600 kilowatts from solar energy along with another 600 kilowatts from large-scale batteries, efficiently powering 12 server racks, each consuming 100 kilowatts.
By facilitating the integration of electricity from diverse sources, including substantial battery systems, DG Matrix asserts that it can eliminate the need for traditional uninterruptible power supplies (UPS) and the associated equipment.
In practical terms, the Interport can significantly reduce the physical footprint allocated for power conversion in data centers. DG Matrix co-founder and CEO Haroon Inam highlighted that one Interport can replace two large power conversion units, streamlining operations.
With the potential to enhance overall system efficiency, the Interport operates at an impressive efficiency rate of 95% to 98%, compared to the 82% to 90% efficiency of legacy systems. Inam emphasized that utilizing fewer components will also lead to greater reliability.
DG Matrix is set to begin deploying initial units to clients in June. Their upcoming product will enhance power delivery to data center racks, building on the existing technology.
Currently, data centers account for approximately 90% of DG Matrix's business pipeline, with the remaining focus on electric vehicle charging solutions. Inam expressed aspirations to expand into power generation and develop micro- and mini-grids to support electrification initiatives in remote areas, where Interports could coordinate power from renewable sources.
"Building a $100 million transmission line to a village is impractical," Inam noted. "With our technology, we can achieve similar outcomes at a fraction of the cost, helping to combat energy poverty."
