Houston-based TerraFlow Energy and DG Matrix announced a commercial agreement on Sept. 28, 2026, to deploy the first integrated vanadium redox flow battery (VRFB) and solid-state transformer (SST) architecture in the United States to directly power a live high-performance computing cluster.

How the Integrated Architecture Works

The initial deployment will integrate TerraFlow's LDUPS™ long-duration uninterruptible power system with DG Matrix's Interport™ solid-state transformer technology and Dell PowerEdge servers, putting a new data center power architecture into operation against real compute loads.

According to the companies, the significance goes beyond combining two technologies: AI data centers are introducing enormous new loads to the power system, and high-performance compute can change power demand rapidly, pushing that volatility back through electrical infrastructure built for more predictable loads.

The integrated architecture is designed to manage power between the grid, on-site generation, energy storage, and compute in real time. TerraFlow's LDUPS™ combines the millisecond response required for UPS functionality with hours of energy capacity, allowing it to continuously buffer changes in compute demand. DG Matrix's Interport™ provides programmable solid-state power conversion, routing, and control between power sources and the compute load. Together, the two technologies are designed to absorb rapid changes in demand before they reach the grid and other upstream electrical infrastructure.

"AI is changing the physics of the power system, and simply adding more generation doesn't solve that problem," said Jon Parrella, CEO of TerraFlow Energy. "We have to change how these enormous loads connect to and interact with the grid. By putting long-duration storage and intelligent power distribution between the grid and the compute, we can give data centers the power performance they need without asking the grid to absorb every movement in demand. That is how we start turning data centers from grid liabilities into grid assets."

A Framework for Broader Deployment

The commercial agreement establishes a framework for TerraFlow and DG Matrix to bring the integrated LDUPS™ and Interport™ architecture into data center projects beyond the initial deployment. The companies are targeting applications where AI and high-performance computing require greater control over how power is delivered, managed, and exchanged with the grid.

"AI infrastructure requires us to rethink power distribution from the grid all the way to the compute," said Haroon Inam, CEO of DG Matrix. "Solid-state transformers allow us to control power dynamically rather than simply move it from one voltage to another. Combining that capability with TerraFlow's LDUPS™ technology creates an architecture that can respond to the compute load in real time while controlling how that load is presented to the grid. This is the direction data center power infrastructure needs to go."

Addressing Grid Interconnection Challenges

The architecture also addresses an issue facing utilities and data center developers: how to connect gigawatts of new compute demand without requiring the power system to respond instantaneously to every change occurring inside the data center. By controlling those changes behind the meter, integrated storage and power distribution can help make large loads more predictable, more flexible, and ultimately easier for the grid to serve, according to the companies.

For TerraFlow and DG Matrix, the initial deployment is described as the starting point for a commercial architecture designed to scale with the rapidly growing power requirements of AI infrastructure.

"We aren't building another layer of backup power," Parrella said. "We're building the infrastructure that sits between compute and the grid and allows both of them to perform better."

About the Companies

TerraFlow Energy describes itself as transforming energy storage from backup equipment into critical power infrastructure.

Built on long-duration, non-flammable vanadium flow battery technology, the company's battery-in-building architecture combines uninterrupted power, long-duration energy storage, and controllable load management in a single platform intended to simplify electrical infrastructure for AI data centers and other energy-intensive facilities. The company says it turns large electrical loads into flexible grid assets, helping customers improve resilience, reduce operating costs, accelerate deployment, and strengthen the electric grid.

DG Matrix positions itself as the global leader in solid-state transformer solutions and says it is working to remove power as the binding constraint on AI by building what it calls the intelligent power fabric of the AI data center.

The company's AI-enabled Interport™ platform, built on what DG Matrix describes as the world's first commercially available, programmable multi-port solid-state transformer, converts, routes, and controls power between the grid, on-site generation, storage, and compute loads through a single, software-defined stage. DG Matrix states that its solution offers faster deployment, lower energy costs, native 800 VDC readiness, and protection from GPU pulse loads, helping hyperscale, neocloud, and colocation operators bring AI capacity online in months instead of years.

Powering the Next Wave of Data Center Investments Across the United States

The United States is racing to build the digital infrastructure behind AI, cloud computing, and hyperscale connectivity, but the developers, contractors, and suppliers who move first are the ones who win the contracts. How do you spot the next multi-billion-dollar data center campus before your competitors do?

Global Project Tracker (GPT) platform by Blackridge Research delivers real-time intelligence on data center construction activity across the United States, from hyperscale campuses to colocation and edge facilities. Track projects from early planning through commissioning, and position your business at exactly the right moment in the project lifecycle.

With coverage spanning every project stage, you gain the lead time needed to secure supply agreements, bid on contracts, and build relationships with key decision-makers before tenders go public.

• Upcoming Projects

• Tender Notices

• Contract Awards

• Projects Under Construction

• Completed Projects

Stay ahead of the United States' fastest-growing construction sector. Book a Free Demo of the Global Project Tracker (GPT) platform today.