October 24, 2025
ON.energy announced today the launch of a new medium-voltage uninterruptible power supply (UPS) system engineered specifically to meet the unique and demanding power requirements of artificial intelligence (AI) data centers. The company claims its "AI UPS" is the first system purpose-built for this market.
According to the Miami-based firm, traditional UPS systems are ill-equipped to handle the rapid load changes and significant voltage fluctuations characteristic of large-scale AI compute facilities, which often house massive clusters of power-intensive GPUs. The new AI UPS is designed to act as a dynamic interface between these data centers and the electrical grid, providing what ON.energy calls "grid-safe resilience" while also accelerating the timeline for grid interconnection.
“AI UPS is the new standard for how to interconnect AI data centers to the grid - faster, safer, and more resilient,” said Alan Cooper, co-founder and CEO of ON.energy.
The system is architected to scale from megawatt to gigawatt levels and can operate in both grid-connected and off-grid environments. A key function is its ability to absorb transient loads and fluctuations from GPU clusters, which helps stabilize the local power grid and protect on-site generation equipment. This capability is critical for the rapid deployment of large-scale AI campuses, which are among the world's largest single consumers of power.
A distinguishing feature of the AI UPS is its grid-interactive design. Unlike conventional units, it enables data center operators to participate in energy markets. ON.energy contends that by leveraging the system in grid services or energy savings programs, operators could generate "millions of dollars annually per 100MW of IT load," creating a new potential revenue stream.
“We engineered AI UPS to set a clear technical standard for what grid-safe data center interconnection looks like,” said Ricardo de Azevedo, co-founder and CTO of ON.energy. “It’s a scalable foundation for the next era of AI infrastructure, one that protects both the data center and the grid.”
The company confirmed that deployments of the new UPS are already underway at several hyperscale data centers across the United States.
Founded in 2016, ON.energy develops utility-scale energy storage systems in addition to UPS technology, with over 400MWh of storage capacity currently under construction. The company enters a growing niche, following similar recent announcements from competitors like Solidion Technology, which also unveiled a UPS aimed at the AI data center market earlier this month.
SOURCE DCD
