SolarEdge and Infineon Announce Modular 2-5 MW Solid-State Transformer Targeting >99% Efficiency for AI Data Centers

SolarEdge Technologies and Infineon Technologies announced on November 5, 2025 a collaboration to develop a modular 2-megawatt to 5-megawatt solid-state transformer (SST) building block targeting greater than 99 percent efficiency for next-generation AI and hyperscale data centers. The announcement landed alongside SolarEdge’s third-quarter 2025 earnings release and drove an immediate stock-price spike on the company’s pivot toward AI infrastructure.

The technical scope of the partnership is well-defined. The SST converts medium-voltage utility input (13.8 kV to 34.5 kV three-phase AC) directly to a DC output bus configurable between 800 volts and 1500 volts. The 1500-volt high end aligns with utility-scale solar inverter conventions; the 800-volt point matches NVIDIA’s 800 VDC AI Factory specification. The single product is intended to serve both AI data centers and renewable-integration applications, which is a deliberate convergence positioning.

The Infineon contribution is the CoolSiC silicon carbide MOSFET technology that Infineon ships in 1.2-kilovolt, 1.7-kilovolt, 2-kilovolt, and 3.3-kilovolt families. The 2-kilovolt CoolSiC generation, introduced in 2024 and ramped through 2025, is the enabling device for medium-voltage SST applications. SolarEdge’s contribution is fifteen-plus years of DC architecture expertise from its solar-inverter business, which is structurally similar to the DC bus management at the heart of any SST.

The >99 percent efficiency target, if achieved, would put the SolarEdge-Infineon platform ahead of every announced competitor. DG Matrix claims 98.5 percent peak efficiency on its Power Router. ABB and Hitachi Energy products land in the 97-98 percent range. The single-stage architectures pursued by NCSU’s FREEDM program target 99 percent but have not produced commercial hardware. Whether SolarEdge and Infineon can manufacture above 99 percent at the 2-5 MW scale will be the test.

The partnership is notable as a counter-positioning move. SolarEdge’s solar inverter business has faced multi-year price pressure as utility-scale solar matures. AI data center SST infrastructure is a fundamentally different end market with different margin structure and different customer economics. Infineon, meanwhile, has been the dominant SiC supplier outside Wolfspeed and uses partnerships of this kind to anchor sustained customer demand for its higher-voltage CoolSiC generations.

Why It Matters

Data center buyers should treat the SolarEdge-Infineon partnership as a credible long-term entrant rather than an immediately procurable option. Solar industry analysts tracking SolarEdge should weight the AI infrastructure narrative against the company’s continued residential-solar headwinds; the SST commitment may consume R&D and capex that would otherwise stabilize the core inverter business.

Critical Perspective

The SolarEdge-Infineon partnership is meaningful because it brings two vendors with proven semiconductor and inverter manufacturing capability to the medium-voltage SST market, but the 2026 announcement timing and stock-price spike deserve skepticism. SolarEdge has been navigating a difficult residential-solar market and the AI infrastructure pivot is as much a narrative reset for investors as a technical commitment. The greater-than-99-percent efficiency target is aggressive and not yet demonstrated at the 2-5 MW scale described; SolarEdge’s residential and commercial inverter products operate at 97-99 percent efficiency under controlled conditions, but the leap to medium-voltage SST involves different topology, different semiconductor selection, and different thermal management. Infineon brings legitimate silicon-carbide expertise, but the partnership has not yet disclosed a product ship date, a named customer, or a deployment site. The most likely 2026-2027 trajectory is that SolarEdge ships a sub-megawatt prototype while the multi-megawatt product moves into 2028 or later.

Related Coverage

• Amperesand Raises $80 Million Series A Led by Walden Catalyst and Temasek for AI Data Center Solid-State Transformers: competitor raising funds for similar AI data center SSTs
• DG Matrix Ships First Commercially Available Multiport Solid-State Transformer Aligned With NVIDIA 800VDC AI Factory Spec: competitor shipping SSTs aligned with NVIDIA 800VDC AI factory spec
• Delta Electronics Showcases 800 VDC Solid-State Transformer Power Solutions at OCP Global Summit 2025: competitor showcasing 800 VDC SST power solutions for data centers
• ABB Deploys HiPerGuard Medium-Voltage UPS at 700 MW AI Data: competitor deploying medium-voltage UPS at large AI data center