Observed Signal · Feb 18, 2026 · Funding · Source: TechCrunch · Impact: 2/5 · Sentiment: Positive
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.
Advances in data-center power conversion can reduce space, improve efficiency, and lower operating costs for compute-heavy industries; however this is an early-stage company and not an industry-wide standard yet.
Track AbbVie Signals & Market Shifts in Real-Time
Polaris7 autonomous intelligence agents track regulatory filings, primary sources, executive changes, and deal flow 24/7. Create your free Explorer workspace to monitor these entities.
Key Takeaways & Evidence Grounding
- DG Matrix raised $60 million in a Series A round 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 announced a deal to provide its Interport device to Exowatt, a startup building solar-plus-storage containers for data centers.
- The Interport device can handle up to 2.4 megawatts of connections and can aggregate multiple sources (e.g., 600 kW from solar + 600 kW from batteries) to feed high-density racks.
- DG Matrix claims Interport can eliminate the need for uninterruptible power supplies and reduce data-center power conversion footprint (example: replace two 4×30 ft skids with a single 4×4 ft device).
- Company-reported efficiency: legacy chained devices ~82–90% vs. Interport ~95–98%; initial units scheduled to roll out to customers in June 2026.
Connected Companies & Entities
1 Entity mappedRelated Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Heron Power Secures $140M to Revolutionize Energy Transformers
Heron Power, founded by former Tesla executive Drew Baglino, raised $140 million in a Series B to scale production of its solid-state transformers for data centers and the power grid. The round was led by Andreessen Horowitz’s American Dynamism Fund and Breakthrough Energy Ventures, with participation from several other investors. Heron’s Heron Link units are modular solid-state transformers that can handle 5 megawatts each, convert medium voltage to 800 volts to match Nvidia reference rack designs, include fast-swap modules and short-duration lithium-ion batteries that provide about 30 seconds of power. The company plans a factory to produce 40 gigawatts of Heron Link annually, aims for pilot production in early 2027, and to ramp production over the subsequent two years.
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.
Ex-SpaceX Engineers Raise $50M to Revolutionize Data Centers
Three former SpaceX engineers — Travis Brashears, Cameron Robinson and Serena Grown-Haeberli — founded Mesh Optical Technologies, a Los Angeles startup that raised $50 million in a Series A led by Thrive Capital. Mesh plans to mass-produce optical transceivers for data centers (targeting a production rate of 1,000 units per day within the year) to serve high-performance GPU clusters used for large AI model training and inference. The company aims to build supply chains outside China and qualify for bulk orders in 2027–2028. Mesh’s design removes a power-hungry component that its founders say could cut GPU-cluster power use by 3–5%. Investors frame the company as addressing interconnect bottlenecks and national-security risks tied to reliance on Chinese suppliers.
Track Real-Time Market Signals & Shifts
Set up custom watchlists to receive automated, evidence-grounded executive digests whenever material signals or shifts occur across your tracked landscape.