ON.energy Secures 5GW Transformer Supply Deal to Accelerate AI Data Center Power Infrastructure December 12, 2025 The explosive growth of artificial intelligence is placing unprecedented demands on data center power infrastructure, pushing the industry to seek new solutions for stability, efficiency, and scalability. In a significant move to address this critical bottleneck, electrical equipment manufacturer ON.energy has announced a major supply agreement to secure the transformers needed for its next-generation power systems. The Miami-based company has signed a multi-year deal with transformer manufacturer Prolec GE for the supply of purpose-built, three-phase pad-mount transformers with a total capacity of 5 gigawatts (GW). This agreement is designed to support the rollout of ON.energy's medium-voltage, AI-ready uninterruptible power supply (UPS) technology, with initial deployments at data center campuses scheduled to begin in 2026. The transformers will be deployed across both grid-connected and behind-the-meter AI data center facilities. Dax Kepshire, president of ON.energy’s Data Center division, emphasized the strategic importance of the partnership, stating, "AI data centers are becoming the largest and most dynamic electrical loads in the world. To deploy them responsibly at scale, we need partners who can deliver not only at volume but at the highest standard of quality." He added that the agreement ensures the company has "the infrastructure needed to continue deploying grid-safe data centers at the pace the market requires." The company's AI UPS, launched in October 2025, is marketed as the first system purpose-built for large-scale AI compute. Unlike conventional units, it is grid-interactive, allowing operators to participate in energy markets. ON.energy claims this capability could generate millions of dollars annually per 100 megawatts of IT load through grid services or energy savings programs. The technology is also designed to stabilize AI workloads, enforce controlled power ramp rates, and protect both the data center and the wider grid during voltage disturbances. This deal underscores the intense focus on power resilience within the AI data center sector, where other players like Solidion Technology have also recently launched specialized UPS products. Founded in 2016, ON.energy also develops utility-scale energy storage systems, with over 400 megawatt-hours (MWh) of capacity currently under construction, positioning it at the intersection of data center critical power and broader energy infrastructure. Source: datacenterdynamics
ON.energy Secures 5GW Transformer Supply Deal to Accelerate AI Data Center Power Infrastructure
