Against the backdrop of exponential growth in AI computing power, the electricity consumption of a single supercomputing center has surpassed 500 megawatts — equivalent to the power usage of 500,000 households. The limitations of traditional power delivery systems in terms of efficiency and flexibility are increasingly becoming bottlenecks to unleashing computing power. Solid-state transformers (SSTs), also known as Power Electronic Transformers (PETs or EPTs), with their high-efficiency energy conversion and flexible control capabilities, have emerged as a critical technology for addressing power-related pain points in AI data centers, renewable energy grids, and other scenarios. The industry value chain is poised for explosive growth.
1. What Is a Solid-State Transformer?
A solid-state transformer (SST) is a new type of power conversion device based on power electronic conversion technologies and high-frequency electromagnetic induction principles. According to definitions by the Institute of Electrical and Electronics Engineers (IEEE) and the Proceedings of the Chinese Society for Electrical Engineering, SSTs are classified as intelligent power devices. They serve not merely as simple voltage converters but as key nodes for realizing smart grids, efficient data centers, and renewable energy systems.
From a technical perspective, SSTs convert incoming line-frequency AC power into high-frequency AC at the input stage. After isolation and transformation via a high-frequency transformer, the power is reconstructed into line-frequency AC or DC at the output stage. By means of advanced control systems, SSTs enable bidirectional power flow and intelligent regulation.
Compared with traditional transformers, SSTs offer several key advantages:
High-Efficiency Conversion: System efficiencies exceed 98%, a significant improvement over conventional solutions, potentially saving tens of millions of yuan in annual electricity costs for gigawatt-level data centers.
Compact Design: Thanks to high-frequency magnetic materials and modular design, SST systems occupy less than 50% of the footprint of traditional solutions, greatly conserving equipment room space.
Intelligent Control: As a “software-defined” power router, SSTs utilize digital signal processors for real-time control, enabling seamless grid connection and self-healing capabilities.
Green Energy Compatibility: With wide input voltage ranges and multi-port compatibility, SSTs can directly interface with photovoltaic and wind power sources, reducing conversion losses."
2. Future Outlook for Solid-State Transformers
Major global economies have identified next-generation power equipment as a strategic priority. China’s 14th Five-Year Plan for modern energy systems explicitly lists SSTs as key smart grid devices, supported by financial subsidies and tax incentives. Green stimulus plans in Europe and the United States similarly provide robust support for the adoption and application of SST technologies. These policy directions are accelerating the transition of SSTs from technology validation to large-scale commercial deployment.
With the introduction of Nvidia’s next-generation architecture in 2026, the industry is expected to enter a new cycle of competition. Companies possessing core technologies, scalable manufacturing capacity, and proven customer experience are poised to expand their market share.
For investors, the SST industry is at a pivotal window of transition from validation to commercialization. Over the next 3–5 years, the sector is likely to undergo market consolidation and structural definition, potentially offering a new solution to the longstanding industry challenge that “the limits of computing power are constrained by electricity supply.”