DG Matrix raises $60 million to make data center energy smarter

Data centers face a vexing dilemma: how to power increasingly dense server racks with equipment based on century-old technology.

Traditional inverters are bulky and hot, but a new generation of solid-state inverters promises to address both problems while making power management more flexible.

One solid-state converter startup, DG Matrix, has raised $60 million in a Series A round, TechCrunch has learned exclusively. Engine Ventures led the round with ABB, Cerberus Ventures, Chevron Technology Ventures, Clean Energy Ventures, Fine Structure Ventures, Helios Climate Ventures, MCJ, and Piedmont Capital also participating.

The company also recently announced a deal to supply its Interport device to Exowatt, a startup that builds solar and storage containers to supply data centers with 24/7 electricity.

The Interport device acts as a power router, Subhashish Bhattacharya, co-founder and CTO of DG Matrix, told TechCrunch. Interport can handle up to 2.4 MW of communications. For example, it can combine 600 kilowatts of solar panels and 600 kilowatts of batteries at grid scale to feed power to 12 racks that each consume 100 kilowatts.

Because Interport can integrate electricity from a variety of sources, including large batteries, DG Matrix says it can eliminate uninterruptible power supplies (UPS) and the equipment needed to support them.

Overall, a single Interport can reduce the amount of space dedicated to power switching in a data center. Two four-by-30-foot sleds loaded with power conversion equipment can be replaced by one four-by-four-foot Interport device, Aaron Inam, co-founder and CEO of DG Matrix, told TechCrunch.

By eliminating multiple devices, the company can enhance the overall efficiency of the system. Enam said all legacy devices linked together can achieve 82% to 90% efficiency, while Interport has 95% to 98% efficiency. Reliability should improve, too, he said. “When you use only 10% or 15% of the components that the imitation uses, it will be much more reliable,” he added.

DG Matrix is ​​currently rolling out initial units to customers in June. Its next product will be a sidecar to power data center racks that builds on technology the company has already developed.

Currently, data centers account for about 90% of DG Matrix’s pipeline, with the remainder allocated to EV charging for fleets. Inam said that the next step is to expand energy construction and add more capabilities to build small and micro networks to support electricity projects in remote communities. There, Interports will coordinate power from solar, wind and batteries to provide electricity around the clock without connecting to the grid.

“No one will build a $100 million transmission line to the village,” Inaam said. “Now you can spend a small portion of that money and help eliminate energy poverty.”