Briefs: Companies Strategize in Providing AI Data Center Power

Companies worldwide are developing innovative solutions to deliver reliable, efficient power for massive AI data centers. SpaceX, which recently acquired xAI, is turning to natural gas power with a $24 billion equipment purchase. Anthropic is also investing $3.4 billion in gas-fired generators.

Infineon Technologies has partnered with Solum to develop 800 VDC power systems for AI, and startup SolidUltra has secured funding to develop modular solid-state transformers.

SpaceX Plans $24B Natural Gas Power Plant and Data Center in Texas

SpaceX plans to build a $24 billion natural gas power plant and supercomputer data center in Starbase, Texas, to bypass multi-year power grid connection queues and secure independent electricity. The project will directly power the firm's expanding computing operations and provide off-grid reliability in the Rio Grande Valley.

The company will finance, build, own, and run both facilities through phased developments. Public filings omit the precise generation capacity and compute sizing.

The private energy initiative is backing large gains in data compute demand. SpaceX’s third-quarter sales climbed 161%, and AI-specific revenue surged ninefold after it absorbed xAI earlier this year.

xAI's Colossus AI supercomputer data center in Memphis, Tennessee. Image used courtesy of SpaceX

Supply fuel will flow through dedicated infrastructure. Affiliate Lone Star Mineral Development submitted plans for an 8-mile fuel line called Starpipe, targeted for service by January 2027.

Local officials will review financial agreements next month. The Starbase City Commission plans to consider a property tax abatement and economic development contract on Dec. 9.

Anthropic Makes $3.4B Deal for On-Site Data Center Power

Anthropic will reportedly pay $3.4 billion for gas-fired generators to power its data centers. The massive equipment purchase will provide dedicated, on-site electricity generation to meet soaring compute demand for Claude AI.

The locations of those data centers have not been disclosed. Anthropic currently leases data center space from Amazon Web Services for its AI.

The transaction involves commitments for 1.7 GW of heavy-duty generators from San Antonio-based OnePWR Solutions. Anthropic assumed OnePWR's existing Caterpillar equipment orders, which OnePWR placed two years ago but lacked the funding to complete.

Take a look inside Project Rainier, Amazon’s supercomputer facility, which Anthropic uses. Video used courtesy of Amazon

The transaction covers complete engineering and construction support for equipment installation. Anthropic did not purchase OnePWR directly, and no OnePWR personnel joined Anthropic.

The purchase represents part of broader international computing buildouts. Anthropic previously outlined a $50 billion blueprint across Texas, New York, and other domestic regions.

Separate infrastructure financing includes a $35 billion lease arrangement for processors spanning five data facilities. Google serves as the financial guarantor for that computing project.

Infineon Partners with Solum To Advance DC Power Systems for AI Data Centers

Infineon Technologies and Korea-based Solum have signed a Memorandum of Understanding to advance high-voltage DC power systems for AI data centers. The partnership aims to cut energy losses and improve power density across large compute facilities.

Joint engineering targets three core hardware stages: intermediate bus converters, battery backup units, and server power supply units. Infineon will supply reference designs and semiconductors in silicon, silicon carbide, and gallium nitride. Solum will manage device manufacturing and hardware development for server power applications.

The vendors demonstrated initial prototype systems at a technical event at Solum's Yongin campus. Hardware highlights included an 800 VDC battery backup unit DC-DC converter rated at 26 kW. The module combines CoolSiC switches, EiceDRIVER gate drivers, and PSOC digital controllers to target peak conversion efficiency above 98.5%.

Powering data centers. Video used courtesy of Infineon

Showcase units also featured low-voltage converters, server supply modules, and an Open Rack V3 rack shelf rated at 33 kW. Volume production for the 26 kW converter is scheduled to begin in 2027.

SolidUltra Secures €3M To Develop 800 VDC for AI Data Centers

SolidUltra has raised €3 million to design modular solid-state transformers for 800 VDC AI data centers. The SSTs are expected to take up 75% less space, reduce ownership costs by about 30%, and lower power losses by 67%.

SolidUltra links the medium-voltage electrical grid straight to 800 VDC in a single stage. Most current setups require a low-frequency transformer combined with multi-step conversion gear, which adds heat, size, and system latency.

The SSTs target 98.5% efficiency alongside 99.999% operational availability. Standard systems scale from hundreds of kW up to 10 MW or higher through hot-swappable field modules replaceable in under 15 minutes.

Founding partner Watt & Well supplied the seed round within three months of the startup's incorporation. The capital will fund engineering, industrialization, and initial client pilots ahead of a planned 2028 commercial rollout.

Long-term roadmaps target rapid volume assembly following commercial introduction. The company plans to ship 10,000 modular transformer units by 2032, representing about 1 GW of deployed grid conversion capacity.