has signed letters of intent to sell technology designed to address the AI boom’s biggest bottlenecks: aging infrastructure and a transformer shortage.Baglino, chief executive officer and founder of Heron Power Electronics Co., said his company has inked preliminary deals with firms including Crusoe, which is developing OpenAI’s Stargate site.

Traditional transformers, which adjust voltage levels, are essential for transmitting and distributing electricity to anything that requires power. A shortage of transformers globally has caused long project delays and stymied the buildout of cheap renewables, just as power demand has skyrocketed.

Heron Power’s device eliminates the need of traditional transformers. The company’s devices will be able to connect renewables, batteries and even data centres to the grid while also help stabilise energy flow.

“Using power electronics to modernise the medium voltage electrical stack is a critical solution to help Crusoe drive down costs and increase power efficiency in our AI factories,” Chase Lochmiller, Crusoe’s cofounder and CEO, said in a statement late Tuesday.

Baglino helped shape Tesla’s powertrain, battery and energy product strategy. It’s “certainly possible” Heron will work with Tesla’s own energy business in the future, he said in an interview on Bloomberg Television.

Last year was “the beginning of the energy storage wave, and I expect Tesla Energy to continue to grow quickly,” he said.