Scalvy Secures $13.9M to Untangle the Power Knot Strangling AI and Electrification

AUSTIN, Texas – March 26, 2026 – As the artificial intelligence boom and the global push for electrification place unprecedented strain on power infrastructure, Austin-based startup Scalvy has secured a $13.9 million oversubscribed Series A funding round to commercialize a technology that aims to solve the energy bottleneck at its core.

The investment, which brings Scalvy's total capital raised to approximately $17 million, was led by a strategic investor and Silicon Badia, with significant participation from climate-tech focused Azolla Ventures, Climate Capital, and Skyriver Ventures. The funds are earmarked to accelerate certification and deployment of the company's novel power delivery system, a platform designed to feed the insatiable energy demands of AI data centers, energy storage systems, and electric mobility.

While the tech world remains captivated by the computational power of new AI chips and models, a less glamorous but more fundamental crisis has been brewing in the background: how to power it all. Traditional, centralized power delivery systems are increasingly showing their age, proving too bulky, inefficient, and difficult to scale for the megawatt-level demands of modern infrastructure.

"Every conversation in tech right now is about AI compute—the chips, the models, the data centers being built at a staggering pace. What's getting far less attention is the power infrastructure that has to feed all of it," said Namek Zu'bi, Managing Partner at Silicon Badia. "And it's not just data centers—this bottleneck shows up across industries, well beyond AI. Scalvy is tackling this at the architectural level, not patching around it, which is why we're proud to back them."

Redefining Power with the 'Power Neuron'

At the heart of Scalvy's strategy is its patented Power Neuron platform, a system that fundamentally re-architects how electricity is converted and managed. Instead of relying on a single, large, centralized power conversion unit, Scalvy distributes the task across a network of compact, software-coordinated modules deployed directly at the point of energy consumption.

Each "Power Neuron" module contains its own power conversion, control logic, and built-in energy storage. This modular, decentralized approach allows systems to scale to massive power levels with greater efficiency, a smaller physical footprint, and higher reliability. Crucially, the company claims this can be done without forcing customers to completely redesign their existing systems.

"The AI infrastructure and electric mobility industries are currently trapped: if you want higher power, you are forced to sacrifice space, increase costs, and lose usable capacity," explained Mohamed Badawy, Co-Founder and CEO of Scalvy. "Scalvy is changing this, as the only company enabling systems to scale to massive power levels without those traditional penalties... We provide the building blocks for a high-power future that is both scalable and sustainable."

This approach directly confronts the limitations of legacy systems. For AI data centers, it means powering megawatt-scale server racks without sacrificing precious compute density. For electric vehicle infrastructure, it promises more compact and efficient powertrains and charging systems. And for grid-scale energy storage, it offers enhanced resilience and economic performance at the battery pack level.

A Bet on a New Default Architecture

The investor interest from firms like Azolla Ventures, which specializes in high-impact climate technology, underscores the technology's broader potential. They see a solution not just for AI, but for the entire energy transition. Innovation in power electronics, the foundational technology that manages electricity flow in everything from phone chargers to power grids, has been notoriously slow.

"Power electronics literally powers our world, but innovation in the category has been painfully slow," noted Matthew Nordan, General Partner at Azolla Ventures. "Scalvy's unique architecture changes the game with minimal tradeoffs: It's just better, cheaper, and more flexible."

The investment represents a strategic bet that a structural, rather than incremental, solution is required. While competitors offer various forms of distributed power for specific applications like EV charging, Scalvy's focus on a universal, modular building block that can be applied across sectors is what has attracted venture capital.

From Validation to Commercial Rollout

Founded in 2022 by Badawy, a former tenured professor, and CTO Amr Ibrahem, Scalvy has moved from academic theory to real-world application. The company has already completed successful technical validations of its technology under operating conditions with what it describes as "several blue-chip customers" in the mobility and energy infrastructure spaces, including a long-standing partnership with automotive supplier Valeo to validate modular battery architectures.

Initially focused on electric mobility, the surging power demands from the AI industry drove a strategic expansion into data centers and stationary storage, validating the platform's versatility. With fresh capital and proven interest, Scalvy is now aggressively expanding its engineering, product, and operations teams in Austin to prepare for product certification and near-term field deployments with a growing list of waitlisted customers.

The challenge is immense, but so is the opportunity. By solving a problem that is foundational to multiple trillion-dollar industries, Scalvy and its investors are betting that its technology will become an indispensable component of our increasingly electrified world. As Nordan of Azolla Ventures speculates, "Eventually, most things in the world that draw electricity will be powered this way."