Overview
Hyliion is marketing its KARNO Power Module as an alternative source of electricity for sites that cannot depend solely on the local power grid. CEO Thomas Healy said the company sees rising demand from data center operators who face lengthy delays securing grid connections and who require dependable on-site generation.
Grid constraints and market need
Healy told company observers that, in many build locations sought by large-scale cloud providers, the limiting factor is grid interconnect capacity rather than fuel availability. He said utilities can take years to approve new connections, while natural gas infrastructure is already present in most target markets. The KARNO system is designed to run on standard utility-grade natural gas at pressures between 5 and 25 PSI, avoiding specialized fuel logistics.
Efficiency and architecture
Hyliion describes the KARNO Power Module as delivering roughly 50% fuel-to-electricity efficiency, which the company contrasts with an average U.S. grid energy conversion efficiency of 36%. The system produces native 800V DC output, which the company says removes conversion losses that typically affect AC-based alternatives. Hyliion also notes that the KARNO qualifies for a 30% Investment Tax Credit.
As a concrete retail example, Hyliion provided a comparison for a New York customer paying $0.22 per kilowatt-hour from the grid. The company's analysis suggests the KARNO could provide electricity for under $0.17 per kilowatt-hour after factoring fuel, maintenance and capital amortization.
Product validation and timelines
Hyliion recently completed UL certification testing for its 200 kW Power Module and plans to pursue commercial deployments beginning in late 2026. The company is also developing larger, multi-megawatt configurations aimed specifically at data center applications. Healy said a separate 800 kW platform being developed for the U.S. Navy in 2026 serves to validate the company’s multi-unit stacking approach - the same architecture intended to scale into multi-megawatt systems for hyperscaler customers.
Sales pipeline and manufacturing plans
The company reported nearly 750 KARNO Cores under non-binding letters of intent, which Hyliion estimates to represent about $400 million at current pricing. Management said the immediate priority is converting that pipeline of LOIs into executed contracts ahead of a planned manufacturing scale-up scheduled for 2027.
Military business and partnerships
Looking to defense demand, Healy said the company expects to add $40 million to $50 million in military contracts across multiple branches this year. He emphasized that the commercial terms of those agreements may shift as they mature, but characterized the current engagements as deep technical partnerships rather than one-off transactions.
Fuel flexibility
Hyliion highlighted the ability of its hardware to transition from natural gas to hydrogen blends without requiring changes to site infrastructure, positioning fuel flexibility as a longer-term differentiator.
Conclusion
Hyliion is promoting the KARNO Power Module as a response to what it describes as structural limits in grid interconnect capacity for data centers. With UL certification for the 200 kW unit, an 800 kW Navy platform under development, a substantial LOI backlog and an anticipated military revenue stream, the company is focusing on converting interest into binding orders while preparing to scale manufacturing next year.