ON.energy Secures Landmark 5-GW Transformer Supply Agreement to Accelerate Deployment of Grid-Safe AI Data Center Infrastructure
ON.energy, a leading provider of grid-safe, medium-voltage AI UPS™ infrastructure designed specifically for hyperscale data centers, announced a major milestone with the signing of a 5-gigawatt (GW) transformer supply agreement supporting both data center and renewable energy infrastructure across the United States. This large-scale procurement represents one of the most significant dedicated transformer commitments ever reported for AI-ready digital infrastructure, positioning the company to accelerate deployment of its advanced medium-voltage uninterruptible power solutions at data center campuses beginning in 2026.
The agreement arrives amid an unprecedented surge in U.S. electricity demand, led primarily by hyperscale data centers and the explosive growth of artificial intelligence workloads. Analysts increasingly project that national data center demand will climb into the tens of gigawatts by the end of this decade, with AI clusters in particular representing the fastest-ramping, highest-density electrical loads ever attempted on the grid. Because of their immense power draw and second-by-second variability, these new electrical loads require grid-safe architectures and components capable of managing power with extreme precision, redundancy, and reliability.
Against this backdrop, ON.energy has selected Prolec GE as its manufacturing partner under the new agreement. Prolec GE will produce and deliver a large portfolio of custom three-phase pad-mount transformers, each engineered for seamless integration with ON.energy’s medium-voltage infrastructure. By tailoring the design to ON.energy’s AI UPS™ architecture, these transformers will support the company’s mission to provide grid-stabilizing, high-reliability electrical systems for applications ranging from utility grid interconnections to behind-the-meter, privately powered AI campuses.
These purpose-built transformers will play a critical role in ON.energy’s technology stack, enabling the company to stabilize fast-changing AI electrical loads, control ramp rates to meet utility requirements, and protect both data center equipment and the broader grid during voltage disturbances or transients. As AI data centers evolve into major grid assets, the ability to precisely regulate and buffer power flow becomes essential to maintaining reliability at regional and national scales.
“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,” said Dax Kepshire, President of ON.energy’s Data Center division. “This agreement ensures we have the infrastructure needed to continue deploying grid-safe data centers at the pace the market requires.”
The company’s medium-voltage AI UPS™ solution represents a new category of electrical infrastructure designed specifically for next-generation digital loads. Unlike traditional low-voltage UPS systems, which were developed for enterprise-scale computing of the previous era, ON.energy’s medium-voltage approach is engineered to support multi-hundred-megawatt campuses and rapid scaling. By integrating the transformers directly into its medium-voltage platform, ON.energy provides utilities and data center developers with a solution optimized for the massive step-change in power that AI accelerators require.
The new agreement also reflects the broader constraints facing the U.S. electric equipment supply chain. Lead times for large power transformers—often measured in years—have tightened as data center, renewable energy, grid modernization, and electrification sectors all compete for limited manufacturing capacity. By securing long-term, high-volume production with Prolec GE, ON.energy eliminates one of the most significant bottlenecks impeding data center construction timelines. This strategic move positions the company to deliver predictable equipment availability at a moment when the industry is struggling to meet demand.
The transformers will be deployed across a variety of environments and use cases, including:
- Grid-connected hyperscale AI data centers, where controlled ramp rates and voltage stability are required by utility interconnection agreements.
- Behind-the-meter AI campuses, which rely on localized power systems, microgrids, or dedicated energy resources to operate independent of peak grid demand.
- Hybrid renewable-powered facilities, where the integration of solar, wind, or storage requires transformers capable of managing bidirectional power flow and intermittent generation.
Across all these applications, the transformers serve as foundational infrastructure, providing the electrical interface needed to integrate ON.energy’s medium-voltage UPS™, advanced switching, and AI stability systems.
This project marks more than just a procurement milestone—it represents a defining step in the evolution of grid-safe, AI-ready data center design. As AI power consumption becomes a dominant force in U.S. electricity markets, the need for stable, predictable, and utility-friendly power flows becomes critical. ON.energy’s technology is specifically engineered to provide that stability, enabling hyperscale developers to build faster, interconnect sooner, and operate with significantly higher reliability.
The agreement with Prolec GE strengthens ON.energy’s long-term mission to bring structure and predictability to the fast-changing AI data center market. With a reliable pipeline of transformers—one of the most essential components in medium-voltage electrical systems—ON.energy can scale deployments to match client demand without being hindered by supply chain constraints. This ensures customers have access to grid-safe electrical infrastructure capable of supporting AI clusters that may ramp their power consumption up or down by megawatts per second.
As the United States moves to expand its grid capacity, integrate renewables, and accommodate AI-driven electrification, partnerships like this one signal how industrial collaboration is reshaping power system engineering. ON.energy’s efforts illustrate how data center developers, equipment manufacturers, and utilities must work together to support the next wave of digital infrastructure.
With this agreement in place, ON.energy is positioned to continue enabling customers to build AI campuses that interconnect faster, operate more reliably, and contribute more responsibly to the grid. The company’s focus on grid-stability, power-quality preservation, and medium-voltage innovation underscores its role as a critical player in the transformation of both the digital and energy sectors.
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