Estonian energy infrastructure and grid power system provider Skeleton Technologies has secured a strategic investment and exclusive partnership with Siemens.

According to the companies, the new partnership aims to address what they see as the central constraint on data center expansion: massive, rapid, and recurring swings in electricity demand.

Siemens has pinpointed Skeleton’s supercapacitor technology as a way to meet this challenge by acting as an electrical shock absorber, absorbing rapid power swings and protecting equipment and the grid without compromising the industry’s ability to increase compute density.

Skeleton’s system is a high-power energy-storage device designed to handle sharp load fluctuations in grids and AI data centers in under a millisecond. The company claims its systems help AI data centers smooth power demand and reduce energy consumption.

“By combining Siemens’ electrical infrastructure expertise with Skeleton’s breakthrough supercapacitor technology, we can help customers unlock more AI capacity, improve resilience and accelerate growth in a rapidly expanding market,” said Peter Koerte, member of the managing board of Siemens AG and president of smart infrastructure.

Taavi Madiberk, CEO and co-founder of Skeleton Technologies, added: “Our partnership with Siemens brings together Skeleton’s innovation and Siemens’ global industrial scale to accelerate the deployment of AI infrastructure, unlock more computing power and improve energy efficiency. This winning combination gives us the strongest value proposition in the AI power infrastructure market, and we plan to become the world’s largest provider of white-space power systems for AI data centers.”

The investment and partnership brought the company’s value to more than $1 billion.

The deal is the latest partnership signed by Skeleton to support the deployment of its system across the data center sector. This year, it partnered with transformer manufacturer DG Matrix to support the data center sector’s transition to 800VDC power infrastructure. It also partnered with German semiconductor manufacturer Infineon to develop a suite of high-efficiency, resilient power solutions for modern data centers.

It also recently launched a new UPS for AI data centers, which it claims delivers continuous power protection for data center operators while complying with grid connection requirements.

Skeleton was launched in 2009 in Tartu, Estonia. Its first customer was the European Space Agency and has seen uptake across the German automotive sector, with use in BMW’s i7 and M-series models.

It opened its first US manufacturing facility in Houston, Texas, earlier this year, following on from two European factories that launched in November 2025 – a $270m facility in Germany and a $60m plant in Finland.