Scalvy, an Austin-based developer of modular power electronics, has raised $13.9M in an oversubscribed Series A funding round led by Silicon Badia. The company's Power Neurons platform uses distributed, software-defined building blocks to deliver ultra-high power density, 99%+ efficiency, and grid interactivity for AI data centers, energy storage, and electric mobility. The capital will fund certifications, testing, deployments, and team expansion.
AI Power Crunch Fuels Funding Surge
The raise arrives amid surging power demands from AI data centers, where capacity is set to double to 97GW by 2030 per JLL. Grid constraints are delaying expansions, as noted in recent reports on U.S. data center buildouts. Scalvy's distributed architecture sidesteps traditional centralized systems from incumbents like Schneider Electric and Vertiv, which rely on bulky HVDC solutions.
Centralized Power Hits Efficiency Limits
Current power delivery in data centers and EVs forces trade-offs in density, uptime, and grid integration. AI racks now demand 1MW+, but legacy systems limit usable energy extraction and require costly sidecars. Grid delays compound the issue, with tech giants pledging to fund their own upgrades per White House announcement.
Power Neurons Enable Distributed Delivery
Scalvy's Power Neurons achieve 250 W/in³ density, 400V-3kV output, and hot-swappability for 99.9% uptime, eliminating HVDC buses. This unlocks 30% more usable energy in storage and scales seamlessly across applications per company site. Unlike integrated powertrains from players like BorgWarner, Scalvy's modular design fits hyperscale racks, grid storage, and heavy EVs.
As Namek T. Zu’bi, Co-Founder & Managing Partner at Silicon Badia, noted:
“Every conversation in tech right now is about AI compute… Scalvy is tackling this at the architectural level.”
Climate VCs Validate Scalvy Bet
Silicon Badia co-led with Azolla Ventures, Climate Capital, and SkyRiver Ventures. These firms bring climate tech conviction, with Azolla targeting gigaton GHG cuts and Climate Capital focusing on energy abundance. Their participation signals Scalvy's role in powering AI without grid strain, aligning with investors' theses in electrification and deep tech.
Data Center Power Market Doubles
The data center power market stands at $17.11B in 2026, projected to reach $30.06B by 2034 at 7.5% CAGR per Fortune Business Insights. Trends favor distributed systems amid AI growth and policy shifts like the DATA Act enabling off-grid generation. Scalvy positions against incumbents with superior density and interactivity.
Power Experts Lead Modular Shift
Founder and CEO Mohamed Badawy built the Center of Power Electronic Converters at San Jose State University, securing NSF/DOE funding and clients like Meta per SJSU CV. CTO Amr Ibrahem brings Delphi and BorgWarner EV experience, while VPs hail from Tesla, Valeo, and MKS Instruments. This stack covers research, hardware, software, and automotive validation.
Certifications Pave Commercial Path
Scalvy eyes 2027 production post-certification, with ongoing Valeo EV tests achieving breakthrough efficiencies per PR Newswire. Fortune 500 deals and 1MW demos signal traction, as the team scales from 31 employees.