# Elon's Former Battery Chief on Making Transformers 100x Smaller | Drew Baglino, Heron Power

## Executive summary

The video discusses the fundamental infrastructure overhaul required to support the explosive energy demands of AI data centers. Drew Baglino, CEO of Heron Power, details how current grid-to-chip transformers are inefficient and bulky. He presents solutions utilizing wideband gap semiconductors (like Silicon Carbide/GaN) to achieve solid-state power conversion at hundreds of kilohertz, enabling transformers that are 100 times smaller volumetrically. This technology can reduce grid-to-chip power loss by a factor of two, potentially unlocking significant additional compute capacity for gigawatt data centers.

## Key takeaways

- Data Center Energy Loss: A data center consuming one gigawatt (GW) of power converts it into approximately 700 megawatts (MW) of heat, with about 300 MW lost to the atmosphere. This inefficiency necessitates grid-level improvements.
- Heron Link Transformer Innovation: The core product, Heron Link, utilizes high-frequency switching (hundreds of kilohertz) instead of traditional 60 Hz methods. This allows for a transformer that is 100 times smaller volumetrically per unit power compared to existing oil-filled units.
- Wideband Gap Semiconductors: Materials like Silicon Carbide (SiC) and GaN enable the creation of highly engineered, small transistors capable of handling extremely high voltages (e.g., 10,000 volts), allowing power devices to be smaller than traditional GPUs while maintaining superior performance.
- Grid Modernization Necessity: The current utility incentive model, built on historical low load growth, is unsustainable for the projected 3-4-5% annual electrification growth required by AI and electric vehicles. This necessitates a shift to active, solid-state infrastructure.

## Technical details

- Power Conversion Efficiency: Data centers convert power into heat; reducing grid-to-chip loss by a factor of two means a gigawatt data center can gain up to 35 megawatts of useful compute capacity.
- Solid-State Transformers (SST): Traditional transformers are large, passive, oil-filled mechanical devices operating at 60 Hz. SSTs use power electronics to perform galvanic isolation and conversion at high frequencies (hundreds of kHz), resulting in smaller, safer, and more scalable units.
- Semiconductor Physics: Wideband gap materials (SiC, GaN) are used because they can block higher voltages per unit area than silicon-based devices, allowing for faster switching speeds and reduced parasitic capacitance in power electronics.

## Practical implications

- The energy infrastructure must transition from large, passive, mechanical components (transformers, switchgear) to smaller, active, solid-state power electronics.
- Data centers are identified as 'best utility customers' because their high average load consumption makes the grid more affordable for residential users.
- Grid operators and developers should focus on integrating advanced power semiconductors to simplify buildout and improve reliability.

## Topics

Power Electronics, Grid Infrastructure, AI Energy Consumption, Semiconductor Physics, Energy Storage, Drew Baglino, Heron Power, Lukas Biewald

Source: https://www.youtube.com/watch?v=e_eEcPysMlQ