Investor bets on century-old grid tech for transformers

San Francisco: A new company called Ayr Energy is making electrical transformers using the same basic technology – iron cores – that has been used for over 100 years. The startup has attracted investors who believe this old technology still has room to grow.

Ayr Energy’s transformers are in high demand. The company has orders worth over $500 million. This is surprising because transformer making is an old business where big companies like GE, Siemens, and Mitsubishi have dominated for many years.

The demand for transformers has grown due to two main reasons. First, more electricity is needed as we switch to electric cars and clean energy. Second, AI computer centers need lots of electricity. Experts think electricity demand will double by 2030. This has created an opportunity for new companies like Ayr.

Ayr makes its transformers in India. They are designed to be more flexible than traditional ones. This means customers can change their order during the process. This is helpful for companies building wind farms, solar projects, and computer centers that need transformers but aren’t sure about all the details yet.