Observed Signal · Nov 13, 2026 · Technical Release · Source: PR Newswire: Technology News · Impact: 2/5 · Sentiment: Positive
Data Center Transformer Market to Grow 13.9% CAGR to $10.72B by 2031
MarketsandMarkets projects the global data center transformer market will grow from USD 5.59 billion in 2026 to USD 10.72 billion by 2031 at a CAGR of 13.9%. Growth is driven by hyperscale data center expansion, AI workloads, and cloud computing, increasing demand for reliable, high-capacity power distribution. Dry-type transformers are the fastest-growing segment, favored for safety and lower maintenance. North America leads with the highest regional CAGR of 16.3%. Key players include ABB, Siemens Energy, Schneider Electric, Eaton, and Legrand. The report also highlights Eaton's acquisition of Resilient Power Systems to strengthen medium-voltage solid-state transformer capabilities for data centers.
The growth of data center transformers reflects the expansion of AI and cloud infrastructure, which indirectly impacts the ad tech ecosystem through increased digital content consumption and advertising inventory, though it is not directly an adtech event.
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Key Takeaways & Evidence Grounding
- Data center transformer market projected to grow from USD 5.59B in 2026 to USD 10.72B by 2031 at 13.9% CAGR.
- North America expected to register highest CAGR of 16.3%.
- Dry-type transformer segment expected to grow at 16.2% CAGR.
- Eaton completed acquisition of Resilient Power Systems in August 2025.
- Key market players include ABB, Siemens Energy, Schneider Electric, Eaton, and Legrand.
Connected Companies & Entities
“Research firm publishing the market report on data center transformers.”
“Listed as a major participant in the data center transformer market.”
“Listed as a major participant in the data center transformer market.”
Ontology Mapping & Concepts
Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Startup Hyperscale Power Disrupts 140-Year-Old Transformer Technology
TechCrunch reports that Hyperscale Power, a startup developing high-frequency solid-state transformers (SSTs) for data centers, raised a €5 million seed round led by World Fund and Vsquared Ventures to build a prototype. The article situates Hyperscale within a rapidly growing SST market that has seen roughly $280 million in recent startup funding and notes competitors such as Amperesand, DG Matrix and Heron Power (backed by Andreessen Horowitz). Hyperscale co-founders Daniel Rothmund and Sami Pettersson claim the company can reduce SST size further by operating at much higher switching frequencies (tens of kilohertz). Rothmund — who researched SSTs during a PhD at ETH Zürich and built a 99.1% efficient device — argues SSTs are becoming necessary as AI-driven server racks push power density toward hundreds of kilowatts and beyond.
DG Matrix Secures $60M to Revolutionize Data Center Power
DG Matrix, a startup building solid-state transformers for data centers, raised $60 million in a Series A led by Engine Ventures with participation from ABB, Cerberus Ventures, Chevron Technology Ventures, Clean Energy Ventures, Fine Structure Ventures, Helios Climate Ventures, MCJ, and Piedmont Capital. DG Matrix’s Interport device, described as a power “router,” can handle up to 2.4 megawatts and integrate power from multiple sources (for example combining solar and grid-scale batteries) to feed high-density server racks. The company says Interport can replace bulky legacy power conversion equipment and uninterruptible power supplies, improving efficiency (claimed 95–98% vs. legacy 82–90%) and reducing space requirements. DG Matrix has a deal to supply Interport to Exowatt, plans initial customer deployments in June 2026, and aims to expand into building power, EV fleet charging, and micro/mini-grid applications.
Cramer: Data Centers Drive Market's Biggest Winners
CNBC commentator Jim Cramer said the market can be viewed as two groups: data-center-related stocks and everything else. He argued that a broad buildout of AI infrastructure has pushed data-center exposure mainstream and is lifting companies across power, cooling, networking, semiconductors, industrial equipment and real-estate services. Cramer cited Quanta Services as an example for power/grid work, and named Eaton, Vertiv, Carrier Global, Teradyne, Qualcomm, Caterpillar, Ciena, Arista Networks, Cisco and Iron Mountain as beneficiaries. He suggested the recent strength may mark the start of a multi-year move tied to the expansion of data-center capacity.
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