Torus Secures USD 200 Million Investment from Magnetar, Targets Data Center Boom

US-based Torus Inc. announced that it has raised USD 200 million from Magnetar Capital, an alternative asset management firm, to expand the deployment of its proprietary modular power plants nationwide. The funding assumes significance in the wake of efforts being made in the US, besides other markets, to reduce dependence on Lithium Ion batteries where China has a strong grip on supply chains. Torus's technology is a break from Lithium Ion based solutions, and with segments like data centres willing to back alternative technoliogies, the firm has a bright chance to make an impact.    

The funding is set to accelerate adoption among utilities, data centres, and commercial and industrial customers amid rising energy reliability challenges driven by artificial intelligence and electrification, the official statement notes.

A Distributed Approach to Energy

Torus builds inertia-based hybrid energy systems that combine mechanical flywheels with batteries, supported by enterprise-grade security and software management. Each modular unit can sit at the edge of the grid or directly on-site, responding to grid signals in milliseconds. When linked together, the units form a distributed “grid operating system,” enabling scalable, resilient, and secure power delivery.

“With this investment, we’re building the world’s first distributed utility - connecting small inertial power plants that deliver grid-scale performance at the edge,” said Nate Walkingshaw, CEO and co-founder of Torus. He added that the technology has already been deployed more than 230 times this year, managing over 1 GW of facility power.

Data Centres and AI Growth

The company highlighted data centres as one of its fastest-growing customer segments, with demand being fueled by artificial intelligence and cloud computing. 

Unlike traditional battery-only systems, Torus’ hybrid solution offers millisecond-level response times and a 99.9 percent uptime, making it particularly well-suited for hyperscale operators managing dynamic AI-driven loads.

Neil Tiwari, Managing Director at Magnetar, who will join Torus’ Board of Directors, said, “The architecture is reliable, it scales, and it’s coming to market at a time when demand from AI and electrification is surging. We’re excited to leverage our experience in high-performance data centres and AI infrastructure to support Torus’ proven team as it builds the grid of the future.”

Partnerships and Utility Integration

Torus has secured regulatory and technical approvals enabling it to work with regulated utilities. The company is expanding its partnership with PacifiCorp through a memorandum of understanding covering up to 500 MW of demand response capacity — a move that builds on a 70 MW agreement signed just months ago and already fulfilled within six months. The agreements mark some of the largest US-based commitments for grid-responsive energy storage.

Existing customers, including Varex, PWDR Resorts, Ash Grove Cement, and Salt Lake City International Airport (SLC), have adopted Torus’ systems to ensure operational reliability in critical environments.