Estonian energy storage firm Skeleton becomes unicorn with Siemens deal
October 14, 2026 - 12:46 pm
From left: Markus Grabmeier (President of Electrical Products at Siemens AG), Taavi Madiberk (CEO of Skeleton Technologies), Barry Powell (President and Regional CEO of Siemens Electrical Products) Credit: Skeleton Technologies
Siemens has invested in Skeleton Technologies, an Estonian company specializing in energy storage systems, valuing it at over $1 billion. This agreement follows the closure of a deal this month, worth over $100 million, according to the company.
In exchange, Siemens gains exclusive rights to sell Skeleton's high-power storage systems to data centers. These systems help data centers manage power consumption more efficiently, reducing energy waste. As Taavi Madiberk, CEO of Skeleton Technologies, notes, "we can get up to 40% more compute on the chips if power management is done right."
Skeleton Technologies collaborates with major US cloud firms, and its products will soon power over a gigawatt of data center capacity. The company plans to invest over $200 million in expanding its presence in the US, including building factories there.
The partnership with Siemens is not new; they have collaborated on a €220 million plant near Leipzig, Germany, where Siemens contributed to an automated production line. Siemens aims to offer data centers as comprehensive packages, including power gear and design software.
Peter Koerte, Siemens' tech chief, emphasizes the need for the "next generation of AI operating at the application level" rather than focusing solely on OpenAI. He believes that expanding infrastructure is crucial.
Skeleton Technologies, founded 17 years ago, is a notable success story in Estonia, where it brings together over a dozen tech companies valued at over $1 billion, a remarkable achievement for a country with a population of just 1.3 million. This growth is partly driven by rising power demands from AI, which is putting pressure on European grids and data center builders.
Other tech giants are also investing heavily in Europe's AI ecosystem. This week, Nvidia announced new European investments, including stakes in four French startups.