Why Solid-State Transformers Could Transform AI Data Centers
Why Solid-State Transformers Could Transform AI Data Centers 
Unlike traditional transformers that simply step voltage up or down at line frequency, SSTs integrate advanced power electronics that allow them to convert AC and DC power in multiple ways while also improving power quality. SSTs can manage AC-to-DC, DC-to-AC, and DC-to-DC conversion while helping reduce harmonics and voltage fluctuations throughout the system.
One of the biggest engineering challenges remains the medium-voltage, high-frequency transformer inside the SST, where insulation requirements can exceed 100kV. However, that transformer accounts for only about 15% of the total system cost. The largest cost contributor is the power electronics stage, representing roughly 40% of the overall SST cost.
The first major market expected to adopt SST technology is AI-driven data centers, with broader deployment anticipated around 2028. EV charging infrastructure is expected to follow, with renewable energy systems becoming a larger opportunity in the years after.
This discussion highlights the industry's move toward higher voltage architectures. While many current data center discussions focus on 800V systems, future generations could move to 1,500V and eventually 2,000V architectures to reduce current, improve efficiency, and minimize I2R losses as power demands continue to grow.
These voltage increases are driving greater adoption of wide-bandgap semiconductors such as silicon carbide, or SiC, and gallium nitride, or GaN, creating new requirements for capacitors, magnetics, protection devices, sensors, and other passive components. TDK is actively developing components optimized for these next-generation SST designs, particularly for high-density AI and data center applications.
As AI workloads continue to push infrastructure power requirements higher, solid-state transformers are emerging as a key technology that could redefine how future data centers distribute and manage energy.
For more information about TDK's power electronics, passive components, and system solutions, visit TDK.com.
