US solid-state transformer (SST) developer Hyperscale Power has raised €5 million ($5.7m) in its seed funding round.

The company has designed a miniaturized SST for use in data centers, renewable power projects, and electric vehicle (EV) charging stations.

The funding round was led by the venture capital firms World Fund and Vsquared, which invest in climate change startups and deep tech firms, respectively, with the money going towards building Hyperscale Power’s first prototype of its new SST.

DCD has approached the startup for comment.

“Data centers, EV chargers, and large-scale renewable projects all face the same bottleneck: efficiently and safely converting massive amounts of electricity,” said the firm’s co-founder, Daniel Rothmund, in a statement.

“Our solid-state transformers provide a smaller, lighter, and cleaner alternative that can reduce material use and emissions. The power demand of new GPU models is increasing exponentially, creating a mismatch with traditional power systems. Server racks are becoming significantly denser, and our technology provides the ideal solution.”

The funding round comes amid heightened demand for SSTs in the data center sector as the latter scales, and delays of between 18 and 24 months persist in the market for conventional transformers.

SSTs provide a physically smaller, lower-cost, and more energy-efficient alternative to iron-core transformers, with a recent study by the Energy Research Institute of Nanyang Technological University in Singapore finding that widespread use of SSTs could reduce losses in the electricity grid by up to 25 percent.

In time, said World Fund’s managing partner Daria Saharova, this could result in large energy savings for the data center sector globally. “Data centers alone are driving multi-gigawatt power needs, and grid losses waste around six to eight percent of all electricity generated globally,” said Saharova. “A two percent efficiency gain at this scale translates into millions of tonnes of CO2 avoided.”

Founded in 2025, Hyperscale Power is one of several SST startups. Others include Heron Power, Ampersand, and DG Matrix. The latter raised approximately $60 million last month in its Series A round, with investors including Chevron Technology Ventures, Helios Climate Ventures, and ABB.