Torus Raises $200 Million In Funding Round Led By Magnetar

Torus Inc., a Utah-based energy storage and management company, secured a $200 million investment from Magnetar Financial LLC. This funding, described as an alternative asset investment, aims to accelerate the deployment of Torus’s modular power plants across utilities, data centers, and industrial sectors amid surging electricity demand from AI, cloud computing, and electrification. The round positions Torus to scale production and expand partnerships, building on its hybrid flywheel-battery technology that offers millisecond response times and high uptime. While the investment reflects strong market confidence in Torus’s distributed energy model, it occurs in a competitive landscape where energy storage innovations face challenges in scaling beyond traditional lithium-ion batteries.

Key Highlights:

• Investor: Magnetar, a multi-strategy alternative asset manager with expertise in AI infrastructure and data centers.
• Use of Funds: Primarily for deploying modular systems and partially for constructing the GigaOne manufacturing facility.
• Strategic Impact: Enables expansion of utility partnerships (e.g., up to 500 MW with PacifiCorp) and targets data center growth, with over 230 deployments already in 2025 managing 1 GW of power.
• Valuation Context: No public valuation disclosed; prior funding totaled around $67 million in equity and debt, suggesting this round significantly boosts Torus’s capital base to approximately $267 million cumulatively.

The $200 million infusion is a non-dilutive or flexible capital structure typical of Magnetar’s alternative credit and fixed-income strategies, providing Torus with patient funding for capital-intensive growth. Announced via press release, the investment supports nationwide rollout of Torus’s inertia-based hybrid systems, which integrate mechanical flywheels for rapid inertia with batteries for extended duration. A portion will fund GigaOne, a 540,000-square-foot campus in Salt Lake City, targeting over 1 GW quarterly production within three years— a tenfold increase from current 400 MW annual output.

This round follows Torus’s rapid prototyping since 2021 and recent awards, including TIME’s Best Invention for Torus Spin in 2024 and a 2025 R&D 100 Award. It underscores investor bets on non-lithium alternatives amid U.S. efforts to diversify supply chains away from China-dominated battery production.

Investor Profile: Magnetar Financial LLC

Magnetar, founded in 2005 and headquartered in Evanston, Illinois, manages over $26 billion in assets across alternative credit, fixed income, systematic, and venture strategies. With 221 professionals and offices in New York, London, and Menlo Park, the firm specializes in opportunistic investments in high-growth sectors like AI and infrastructure. Managing partners Ross Laser and Dave Snyderman lead operations, emphasizing flexible capital for transformative industries.

Magnetar’s involvement in Torus aligns with its AI-focused portfolio, including a $235 million AI Ventures Fund closed in August 2024 and major stakes in data center operators like CoreWeave (its largest equity holder post-2025 IPO). Neil Tiwari, Magnetar Managing Director, will join Torus’s board, bringing expertise from AI infrastructure investments. Snyderman highlighted the need for “patient, flexible capital” to scale energy innovations, positioning this as a strategic fit for Magnetar’s $18.6 billion AUM as of early 2025.

Technology and Market Positioning

Torus’s core innovation is its modular, hybrid energy storage systems combining flywheels (for instant inertia and response) with batteries (for duration), avoiding combustion or heavy chemical reliance. Units respond to grid signals in milliseconds, achieve 99.9% uptime, and include cybersecurity appliances for secure, distributed operation. Linked systems form a “grid operating system” that stabilizes renewables integration, reduces outages, and lowers costs—up to 90% on demand charges for industrial users.

This technology addresses key pain points in the energy sector:

• AI and Data Centers: Handles dynamic loads from hyperscale operators, where traditional batteries falter on speed.
• Utilities: Provides grid-scale services like frequency regulation without centralized plants.
• Industrial/Commercial: Ensures uptime for critical operations, as seen with adopters like Varex (medical imaging), Ash Grove Cement, PWDR Resorts, and Salt Lake City International Airport.

In a market projected to see U.S. electricity demand double by 2030 due to AI (requiring 35 GW more capacity), Torus’s American-made, non-lithium approach gains traction amid supply chain concerns. However, scaling flywheel tech remains capital-heavy, with competitors like Tesla’s Megapack dominating lithium-ion segments.

Recommended: FriendliAI Closes $20 Million Seed Extension Funding Round

Strategic Partnerships and Deployments

Torus has secured regulatory approvals for utility integration, expanding its PacifiCorp partnership from a 70 MW agreement (filled in six months) to a 500 MW MOU covering Utah, Oregon, Washington, Idaho, Wyoming, and Northern California—the largest U.S. commitments for grid-responsive storage in these regions. Commercial pilots demonstrate reliability, with 230+ deployments in 2025 managing 1 GW.

The funding is expected to attract more data center orders, leveraging Magnetar’s networks. CEO Nate Walkingshaw emphasized building the “world’s first distributed utility,” shifting from experimental to essential infrastructure.

Company Background and Growth Trajectory

Founded in 2021 by CEO Nate Walkingshaw and co-founder Gilbert Lee in Springville, Utah, Torus evolved from a prototype to a 40,000-square-foot facility by 2025. With a team of ~70 (mostly engineers), it focuses on U.S. manufacturing to empower renewable self-sufficiency. Prior to this round, Torus raised $67 million in April 2024 (led by Origin Ventures, with Epic Ventures, Cumming Capital, Larry H. Miller Company, Zions Bank, Pelion Venture Partners, and ICONIQ Capital), comprising equity, note conversions, and loans to advance commercial/utility portfolios.

In September 2024, Torus invested $10 million in Utah expansion, adding 172 jobs in Salt Lake County via state incentives. Cumulative funding now exceeds $267 million, fueling GigaOne and nationwide scaling. Board additions like David Bywater (ex-Vivint CEO) and Brent Hill (Origin Ventures) bolster governance.

Implications and Future Outlook

This funding validates Torus’s pivot to distributed, resilient energy amid AI-driven demand surges—data centers alone could consume 8% of U.S. power by 2030. It enables Torus to capture market share in a $100 billion+ global storage sector, reducing reliance on volatile lithium supplies and enhancing grid decentralization. Challenges include competition from established players (e.g., Fluence, Stem) and proving long-term flywheel durability at scale.

With Magnetar’s AI expertise, Torus is poised for hyperscale partnerships, potentially reshaping U.S. energy infrastructure. Growth to 1 GW quarterly production could position Torus as a key enabler of net-zero goals, though execution risks in manufacturing ramp-up remain. Overall, the round signals optimism for hybrid innovations in a transitioning energy economy.

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