Delta Electronics (Americas) and X LABS Sign Technology Partnership MOU to Power Next-Gen AI Data Centers

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Delta Electronics, a global leader in power management and smart green solutions, today announced a Memorandum of Understanding (MOU) with X LABS, an investment manager and developer of islanded grids, to deliver energy-as-a-service (EaaS) to AI data center projects. Signed at a ceremony at Delta's Fremont, California headquarters, the agreement brings together Delta's expertise in industry-leading energy infrastructure solutions and X LABS' capabilities in investment management, financial structuring and site development to address one of the most pressing challenges facing the AI industry today: reliable, scalable power - delivered grid-to-rack. The collaboration also targets the expected deployment of 100MW of Delta's Solid-State Transformers (SSTs), eventually scaling to gigawatt-level capacity.

"X LABS is the kind of partner Delta looks for — ambitious, technically driven, and building at a scale that matches the moment. This MOU reflects the trust we've built together and our shared commitment to solving one of the most important infrastructure challenges of this decade," said Mark Ko, Vice Chairman, Delta Electronics, Inc. 

"Off-takers and investors alike recognize the technological complexity of this electrification platform. We're excited to integrate Delta's capabilities, allowing us to finance and deliver industry-leading energy parks for AI data centers and large-scale industrial users," said Karan Trehan, CEO and Founder, X LABS. 

"The challenge for an islanded grid is that no single OEM encompasses high, medium, and low voltage. Delta's SST technology, which sits at the AC/DC, medium-to-low voltage interface, together with its 800VDC architecture, provides a grid-to-rack capability that is otherwise difficult to achieve," said Frank Duggan, Chairman of X LABS and Vice Chairman of Hitachi Energy.

Under the MOU, Delta and X LABS are expected to collaborate on the supply of products and EaaS for AI data center projects. The partnership reflects the scale of the power challenge now facing AI data center development: as rack densities and cluster sizes grow, the constraint is shifting from compute availability to power availability.

"Delta has long believed that energy infrastructure is the foundation upon which the AI era will be built. This partnership with X LABS is a meaningful step in our mission to deliver that foundation at scale, and we are pleased to formalize our collaboration today," said William Mao, Vice President of Energy Infrastructure, Delta Electronics Americas. "As AI data centers increase in power density, Delta's SST technology and power buffering solutions enable more efficient grid-to-chip power conversion and improved system-level flexibility, supporting the scalable, high-performance infrastructure required for AI workloads." 

Building on that foundation, Delta's SST technology replaces conventional passive transformers with digitally controlled power electronics, enabling faster grid response and real-time voltage regulation as loads scale. That capability draws on Delta's existing microgrid deployments across the United States, which provide operational data on how SST-based systems perform under live, variable grid conditions — insight the companies expect to apply directly to X LABS' energy park design as the collaboration moves from MOU to deployment. 

The signing ceremony at Delta's Fremont headquarters was attended by Delta Electronics' Vice Chairman Mark Ko and X LABS CEO and Founder, Karan Trehan, who served as signatories. The collaboration aims to simplify how AI data center operators access reliable, high-density power at scale.