ON.energy Secures Major 5-Gigawatt Transformer Deal for Data Centers

ON.energy has announced a significant agreement for the supply of transformers tailored for data center and renewable infrastructure applications in the United States. The deal involves the procurement of a substantial 5-gigawatt (GW) transformer supply, aimed at facilitating the deployment of ON.energy’s innovative AI UPS technology starting in 2026.

This agreement represents a pivotal advancement in the establishment of grid-safe, AI-ready data center systems. These systems are designed to stabilize rapidly fluctuating loads while ensuring reliable interconnection performance. With the demand for data center power in the U.S. projected to surge to tens of gigawatts over the next decade, the need for robust infrastructure has never been more pressing. AI clusters, in particular, are becoming the fastest growing and densest electrical loads connected to the grid.

Under the terms of the agreement, ON.energy has partnered with Prolec GE to manufacture and deliver three-phase pad-mounted transformers specifically engineered for ON.energy’s medium-voltage architecture. These transformers will be deployed across grid-connected and behind-the-meter AI data center campuses. Their primary function will be to stabilize AI workloads, enforce controlled ramp rates, and protect both the data centers and the grid from voltage disturbances.

“AI data centers are becoming the largest and most dynamic electrical loads in the world. To deploy them responsibly at scale, we need partners who can deliver not only at volume but at the highest standard of quality,” stated Dax Kepshire, President of ON.energy’s Data Center division. He emphasized that this agreement ensures the necessary infrastructure to meet the growing market demands for grid-safe data centers.

The project highlights ON.energy’s ongoing commitment to enabling customers to construct AI campuses that interconnect more rapidly, operate reliably, and integrate responsibly with the power grid. By providing dependable equipment and infrastructure, ON.energy aims to support the evolving landscape of data center technology.

Founded with a vision to power grid-safe data centers and mission-critical facilities, ON.energy develops hyperscale power systems that tackle resilience challenges. The company’s expertise spans various sectors, including industrial, manufacturing, infrastructure, transportation, and grid-scale storage. Leveraging patented technology and proprietary software, ON.energy is dedicated to setting new benchmarks in resilience for projects worldwide.

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This landmark agreement positions ON.energy at the forefront of the energy transition, as the demand for reliable, efficient power systems continues to rise in conjunction with the rapid expansion of AI technologies.