7 Takeaways From the Grid Innovation Summit

Mike Ponting, our Chief Science Officer, and I headed to the stormy Gulf of Mexico for the Grid Innovation Summit in Port Charlotte, FL. This was our first rodeo at this event, and working directly with power companies, co-ops, and regional power players.  We had a chance to have over a dozen one-on-one meetings, and here are 10 takeaways from the event:

1. Explosive Growth in AI Data Centers - Advanced AI and machine learning workloads, and high-performance storage, consume significantly more energy than traditional computing, often necessitating additional transformers to support their continuous, high-density requirements. Modern AI data centers are multiplying in both number and size, driving electricity consumption to record highs. With global data centers expected to account for as much as 12% of total U.S. electricity use in just a few years, utilities are racing to expand capacity or upgrade their networks to avoid blackouts and service disruptions. By 2035, U.S. power demand from AI data centers is expected to grow more than thirtyfold, increasing from 4 GW in 2024 to 123 GW, particularly as hyperscalers, large companies that provide cloud services and operate massive data centers, such as Amazon, Google, and Microsoft, expand their campuses.
   
   Several of the individuals we met with were seeking solutions to increase output from current transformers, which would support this growth. They were also seeking ways to perform “peak shaving” with higher power capacitors.
   
   
2. AI is Straining Transformers - Low & medium-voltage distribution transformers are facing the most significant strain from rising rack power densities, which have grown from 10kW to 100 kW per rack. These transformers were originally designed for much lower power densities and struggle to efficiently handle the high-density GPU server racks without overheating or having voltage stability issues.
   
   One area where Nanoplex HDC-based capacitors can be beneficial is by providing additional energy storage, thereby reducing strain on transformers and enabling existing infrastructure to scale.
   
   
   1. Oil-Filled Distribution Transformers - These are typically used to step down voltage from the utility level (13.8 kV or higher) to the voltages used within data centers (480V or 208V). As rack power densities surge, these experience greater heat buildup and risk exceeding their rated loading, resulting in a reduced lifespan and an increased risk of insulation breakdown.
   2. Dry-Type Transformers - Popular for indoor and close-to-load applications, dry-type transformers face significant cooling and derating challenges at high load, especially as rack-level power per transformer surpasses historical norms.
   3. Legacy Busway and Isolation Transformers - These units were not designed for the current levels of distributed computing and have limitations in meeting the dramatic increases in both instantaneous and continuous load. Their partial-load inefficiencies and thermal limitations pose reliability risks as overall rack power approaches and exceeds 100 kW.
      
      
3. Reliability and Longer Life Capacitor NanoPlex LDF - With NanoPlex LDF, the promise of longer-lasting, more reliable capacitors is now within reach for utility operators tasked with maintaining high-performance infrastructure. Engineered to operate at elevated temperatures and voltages, LDF-based capacitors are crucial for cutting maintenance cycles and operational downtime, especially in environments where old-generation BOPP films have hit their thermal and aging limits. The self-healing capabilities and long-term durability of NanoPlex LDF allow utilities to invest with confidence in components that will stand the test of time.
   
   
   1. Utility grids can expect capacitor lifespans up to five times longer, even under sustained high-voltage stress.
   2. Advanced self-healing properties enhance reliability, ensuring consistent performance in high-stress applications.
      
      
4. “Peak Shaving” During High Demand - Peak Shaving, as an industry term for managing energy demand spikes, was a new concept for us. As the name implies, peak shaving involves reducing the peak load on the power grid by controlling the timing of energy use. A few attendees felt that NanoPlex HDC’s expanded energy storage could help flatten demand curves and reduce strain on their networks during periods of high usage.
   
   
5. Proving the ROI: Lifelong Capacitors and Lower Service Costs - While I don’t know if any of the attendees were from Missouri, they definitely embraced the “Show Me” motto. They were direct that new tech was needed and desired, but not until it was proven, tested, and the ROI was clear. While this requirement was not a surprise, a good story alone would not suffice. Based on the data we have so far from trials with utility grid capacitor makers, NanoPlex LDF-based capacitors will provide substantially longer life at the same cost point, resulting in measurable financial value through reduced maintenance, replacement costs, and service interruptions.
   
   
   1. NanoPlex LDF capacitors minimize interruptions by sustaining operation far longer than legacy alternatives.
   2. Fewer replacements and maintenance cycles lead to significant cost savings and reduced operational risk.
   3. Enhanced reliability rewards utilities with greater grid stability and lower emergency service costs.
      
      
6. High-Performance Capacitors Reduce Transmission Cost - Upgrading grid assets with high-performance capacitors translates to direct reductions in the cost of transmitting electricity. With lower energy losses and improved power quality, utilities save money while still delivering reliable service to homes and businesses. These efficiency improvements are significant as grids expand and service more complex energy mixes.
   
   
   1. Reduced loss factors enable greater transmission distances with less wasted energy.
   2. Higher-capacity, compact designs result in lower capital expenditures for upgrades and new installations.
   3. Minimized reactive losses optimize cost structures for long-distance power delivery.
      
      
7. DOE Funds for Grid Scale - Many attendees were adamant in their belief that the DOE and the current administration would be champions for grid build-out and would provide substation funding and grants to scale and deploy new technology more quickly as we move forward. DOE Secretary Chris Wright has been vocal about rapidly scaling U.S. grid capacity, strengthening security, and stabilizing operations to meet surging electricity demand. In his confirmation hearing and recent interviews, Wright pledged support for robust transmission expansion and reliability-focused reforms, saying, “I am committed to growing our electricity grid and our energy production and removing those barriers that are standing in the way,” emphasizing the need for expedited permitting, smarter regulation, and accelerated buildout of large power plants and long-distance transmission lines.
   
   Additionally, Secretary Wright has said, “We need to make changes rapidly. We need to see new capacity built, smarter regulation, and we need to use our grid more wisely. There are so many things we need to do to improve it. We can’t do it all overnight,” highlighting ongoing 24/7 efforts at DOE to ensure grid stability amid dramatic growth forecasts in AI data centers and manufacturing power needs.”  He also emphasized the importance of grid security, describing the DOE as “essential” to national security and promising continued investments in cyber-resilience and the protection of critical infrastructure against adversaries.

What the Grid Needs for the Next Five Years

The next five years will require an unprecedented upgrade of the electric grid, driven by the growth of AI data centers, advanced transmission needs, the evolution of transformers and capacitors, and shifting patterns of energy demand. To remain resilient, reliable, and cost-effective, utilities must modernize their infrastructure with more innovative, higher-capacity solutions that can meet rapidly rising power densities, integrate renewable energy sources, and deliver efficient direct power at scale.

• Grid Modernization Imperatives

• Utilities will need to massively increase transformer capacity, shifting from legacy medium- and low-voltage units toward advanced solid-state and custom high-capacity transformers designed for sustained loads from AI data centers and hybrid power sources.
• Intelligent Monitoring and SCADA continue to grow in importance as we move into the age of AI-powered exchanges and grid management. As we have seen in IT, Telco, Cars, and many other areas, the ability to understand the state of each device in a system, predict when maintenance is required, and eliminate unplanned interruptions is vital. As we all know, customers expect power to be available 24/7.
• The rapid growth of rack-level loads, now routinely exceeding 100 kW or more, will necessitate investments in enhanced cooling, robust thermal management, and increased installation of transformer banks, substations, and dynamic distribution assets to prevent grid instability and mitigate outage risks.
• Next-generation capacitors, such as NanoPlex HDC and LDF films, will play a foundational role in grid refactoring, supporting direct power transmission (HVDC), power factor correction, and the long-term reliability needed for 24/7 mission-critical computing and renewable energy integration.

• Direct Power and AI Integration

• Advanced capacitor and transformer solutions are crucial for efficient HVDC transmission, enhanced power factor, and real-time grid responsiveness—essential elements for direct power grids and high-frequency operating environments required by AI applications.
• Grid upgrades must include intelligent monitoring, redundancy planning, and the ability to dynamically balance volatile loads created by expanding AI data centers, alongside the growing contribution of solar, wind, and storage.

• Reliability, ROI, and Sustainability

• Utilities will realize significant long-term savings and enhanced operational reliability by investing in next-generation transformers and long-life capacitors, reducing waste, downtime, and maintenance costs while promoting higher transmission and conversion efficiency.
• Sustainable, modernized grids equipped for evolving demands will position utilities to support future technologies, maintain competitive energy pricing, and minimize environmental impact.
  
  

Mike and I did not know exactly what to expect as we set out on this adventure. It is clear that new technology and solutions will be required to address the objectives and challenges of the power grid community and industry. After listening to the attendees of the conference, which covered a wide range of large and small grid players, it is evident that new solutions are needed. We left the event confident that NanoPlex LDF and HDC can be one of the technology solutions that help them upgrade their current infrastructure, scale for future demand, and provide the ROI they need to justify their deployments.