Grid enhancement technology firm Smart Wires has raised $65 million to scale its commercial operations and support utilities in meeting growing energy demand from the data center sector.
The funding includes new investments from BP Energy Partners alongside contributions from Keystone Group.
The company says it will use the financing to scale its commercial operations in 2025 and beyond to address the growing market opportunity, directly citing increased data center power demand.
“With this additional funding - and our strong partnership with BP Energy Partners and Keystone Group - we’ll be able to accelerate our work with customers worldwide and drive further technological innovation,” said Smart Wires CEO Joanna Lohkamp.
Smart Wires produces grid-enhancing technologies, including its SmartValve system, an advanced power flow control (APFC) device.
The technology works by pushing power off overloaded lines or pulling power onto underutilized lines, which the company claims allows utilities to manage capacity and load issues more efficiently.
Smart Wires says the APFC device has helped utilities gain nearly 4GW of firm capacity from their existing networks. The company also states that the solution can be rapidly deployed, adjusted, or relocated to adapt to changing system demands and accommodate new power generation sources.
“Smart Wires’ solutions increase existing grid capacity and reliability in a way that addresses growing energy needs,” said Ramon Betolaza, managing director of BP Energy Partners. “We believe the company will be a critical player in the global energy transition, as its solutions offer the fastest way to tackle increasing electricity demand."
Smart Wires, founded in 2010 and headquartered in Durham, North Carolina, has completed projects with Central Hudson Gas & Electric, National Grid Electricity Transmission, and ISA Transelca. It also has several upcoming projects, including with Southern Company and Georgia Tech, Avista Utilities, Idaho Power, and ISA Energia Brasil.
As data center load projections continue to rise, especially within the US, there are concerns that the current grid infrastructure will be unable to handle the increased load. For example, a recent Goldman Sachs Research note projected that data center demand could grow upwards of 160 percent by 2030.
Last year, the US Department of Energy released the final National Transmission Planning Study, which concluded that US transmission capacity must double or triple by 2050 to meet demand and reliability goals.
As a result, innovative transmission solutions are gaining traction within the market.
Earlier this week, Veir, a US developer of superconducting wires for electrical transmission, raised $75 million as part of its Series B funding round. The company intends to use the proceeds to accelerate the commercialization of its product, which it wants to deploy across data centers, utilities, and renewable energy developers.