DG Matrix Secures $60M for Smarter Data Center Power
▼ Summary
– Data centers struggle with outdated, bulky power transformers, but new solid-state transformers offer a more compact and efficient solution.
– DG Matrix, a solid-state transformer startup, has raised $60 million in Series A funding from a consortium of investors led by Engine Ventures.
– The company’s “Interport” device acts as a power router, integrating electricity from multiple sources like solar and batteries to supply server racks, potentially eliminating the need for separate UPS systems.
– The Interport significantly reduces the physical footprint and increases efficiency of data center power systems, replacing large equipment skids with a single, more reliable unit.
– While initially focused on data centers, DG Matrix plans to expand its technology into EV fleet charging and creating microgrids for remote communities to provide reliable, off-grid power.
The challenge of powering modern data centers is intensifying as server racks grow denser, yet much of the underlying electrical infrastructure remains rooted in outdated designs. Traditional transformers are bulky and hot, creating significant space and cooling demands. A new wave of innovation is addressing this through solid-state transformers, which offer greater flexibility and efficiency. One company leading this charge, DG Matrix, has just secured a substantial $60 million in Series A funding to scale its transformative power management technology.
This investment round was led by Engine Ventures and included participation from a notable consortium of backers such as ABB, Cerberus Ventures, Chevron Technology Ventures, Clean Energy Ventures, Fine Structure Ventures, Helios Climate Ventures, MCJ, and Piedmont Capital. The fresh capital arrives as the company announces a key partnership with Exowatt, a startup creating solar-plus-storage containers for data centers. DG Matrix will supply its flagship product, the Interport device, to this project.
Functioning as an intelligent power router, the Interport device consolidates and manages electricity from multiple sources. According to company co-founder and CTO Subhashish Bhattacharya, a single unit can handle up to 2.4 megawatts. For instance, it could combine 600 kilowatts from solar panels with another 600 kilowatts from grid-scale batteries to efficiently power a bank of server racks. This ability to integrate diverse power sources allows the system to eliminate traditional uninterruptible power supplies (UPS) and their associated support equipment, streamlining the entire power chain.
The space savings are dramatic. Haroon Inam, co-founder and CEO of DG Matrix, explained that two large equipment skids measuring four by thirty feet can be replaced by a single, compact Interport device that is just four feet square. This consolidation directly addresses the critical real estate constraints within data center facilities.
Beyond saving space, the technology significantly boosts efficiency and reliability. Legacy systems chaining together multiple devices typically operate at between 82% and 90% efficiency. In contrast, the Interport device achieves an impressive 95% to 98% efficiency. Inam emphasized that using far fewer components, roughly 10% to 15% of what legacy systems require, inherently leads to greater system reliability and uptime.
DG Matrix is currently deploying its first units to customers and is developing a follow-up product designed as a “sidecar” to deliver power directly to data center racks. While data centers currently constitute about 90% of the company’s business pipeline, with the remainder focused on fleet electric vehicle charging, the vision extends far beyond.
The company plans to expand into building power systems and developing micro- and mini-grids. This expansion targets remote communities lacking reliable grid connections. In these settings, Interport devices could orchestrate power from solar arrays, wind turbines, and battery storage to provide continuous, off-grid electricity. “Nobody’s going to build a $100 million transmission line to a village,” Inam noted. “Now you can spend a fraction of that money and help eliminate energy poverty.” This approach positions DG Matrix’s technology as a pivotal tool not just for modernizing data centers, but for enabling broader global electrification.
(Source: TechCrunch)
