DG Matrix raises $60M to make data center power smarter

In an era where data centers are becoming increasingly congested, the challenge of efficiently powering dense server racks using outdated technology has become critical. Traditional transformers are not only cumbersome but also generate excessive heat. However, a breakthrough in power management is on the horizon with the emergence of solid-state transformers, which promise to enhance both flexibility and efficiency. DG Matrix, a startup focused on this innovative technology, has successfully raised $60 million in a Series A funding round, led by Engine Ventures. Notable participants in this investment include ABB, Cerberus Ventures, Chevron Technology Ventures, Clean Energy Ventures, Fine Structure Ventures, Helios Climate Ventures, MCJ, and Piedmont Capital. Recently, DG Matrix announced a strategic partnership with Exowatt, a startup developing solar-plus-storage solutions aimed at supplying data centers with continuous electricity. The centerpiece of DG Matrix’s technology, the Interport device, serves as a power routing system capable of managing connections up to 2.4 megawatts. This means it can efficiently aggregate power from various sources, such as solar panels and grid-scale batteries, to support multiple server racks simultaneously. By integrating electricity from diverse inputs, DG Matrix claims that the Interport can eliminate the need for traditional uninterruptible power supplies (UPS) and the associated infrastructure. This innovation allows for a significant reduction in the physical space allocated for power conversion in data centers. According to Haroon Inam, co-founder and CEO, a single Interport can replace two large skids of power conversion equipment, optimizing both space and efficiency. With legacy systems typically achieving 82% to 90% efficiency, the Interport stands out with an impressive efficiency rate of 95% to 98%. Inam emphasizes that the reduced number of components used in the Interport will also lead to improved reliability, stating, "When you are using only 10%, 15% of the components that legacy systems use, you’re going to be far more reliable." DG Matrix is set to begin rolling out its initial units to customers in June, with plans for a new product that will further enhance power delivery to data center racks. Currently, data centers constitute about 90% of the company’s project pipeline, while the remainder is focused on electric vehicle charging solutions for fleets. Looking ahead, Inam envisions expanding into micro- and mini-grid solutions to aid electrification efforts in remote areas. In these applications, Interports would manage power from renewable sources like solar and wind, providing reliable electricity without the need for a traditional grid. "Nobody’s going to build a $100 million transmission line to a village," Inam points out. "Now you can spend a fraction of that money and help eliminate energy poverty."