Does the market finally have an opening for solid-state transformers?

This news is about power equipment for data centers, not home energy upgrades, but here is what happened.

Two companies, DG Matrix and TerraFlow Energy, are testing new equipment called solid-state transformers to power a data center running Dell computer servers used for artificial intelligence. A solid-state transformer changes electricity's voltage using computer-controlled electronics instead of the older, simpler equipment most power grids use now. This lets it smooth out the sudden power spikes that AI computing centers create, especially when combined with large batteries for storing energy. In this pilot, the transformer will be paired with a type of long-lasting battery called a vanadium redox flow battery.

Analysts at Jefferies estimate this market could grow from $37 million today to $4.3 billion by 2030, driven by data center operators who need power fast and are running into long wait times for standard transformer equipment. The new devices cost far more than traditional transformers, but they can replace many separate pieces of equipment with one unit, which may offset the higher price for some buyers. Other companies, including GE Vernova, Amperesand, and Enphase, are running similar pilot projects over the next few years to prove the technology works before wider adoption, expected sometime between 2027 and 2029.

This story concerns equipment for large computing facilities, not household electrical systems, so it has no direct bearing on home energy upgrades or rebates.