Demand for electrical transformers, driven by data centers and the AI boom, has surged. Venture capital is backing Ayr Energy, a startup using iron-core transformers—technology over a century old.

While giants like GE and Siemens continue with their established lines, Ayr sees opportunity in this sustained demand cycle, not just short spikes. Their modular designs allow customers to adjust orders mid-process, fitting the needs of renewable energy companies and data center developers.

Their strategy: capitalize on the disruption to enter the market, then roll out new technologies like solid-state transformers. Co-founder Anirudh Reddy believes this could be a game-changer in an industry long seen as stable but now facing unprecedented growth.