SBIR/STTR Research Award

WATTER: Pioneering the Next Wave of Water Heaters

Award identifier 6b7c606eaf58b2d57d3b7e0f1370951e1bc4c9d5b3dd6a53907fc66e389c9f04Awarding agency Department of Defense · Air Force

Award amount

$1,249,802

Program and phase

SBIR · Phase II – Direct to Phase II

Award year

2025

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Award details

Awarding agency
Department of Defense
Branch
Air Force
Recipient company
WATTER
Proposal award date
2025-08-27
Contract end date
2027-03-29
UEI
KSZ8YF1LE9Y6
Solicitation number
X25.5
Topic code
AFX255-DPCSO3

Research abstract

The U.S. Air Force requires increasingly efficient, distributed, and resilient compute infrastructure to support the proliferation of AI/ML at the tactical edge. WATTER offers a revolutionary solution: a high-performance, containerized compute system that turns waste heat from servers into a resource—providing reliable hot water while eliminating energy loss. Our innovation introduces a dual-use paradigm for both DoD installations and residential/commercial markets, transforming every water heater into a secure, self-funded micro datacenter.WATTER’s appliance integrates ruggedized compute hardware into a conventional 50-gallon residential water heater form factor. Instead of relying on hyperscale datacenters that shed heat and strain the grid, WATTER captures server waste heat to meet 100% of a home or facility’s water heating needs—offsetting 20-30% of typical residential energy usage. This simultaneously supports distributed inference workloads like federated learning, predictive maintenance, and ISR pre-processing directly at the tactical or strategic edge.Our Phase I-equivalent work—funded via private capital and early pilot programs—demonstrated:TRL 6 prototype units deployed in the fieldCompute densities up to 10 TFLOPS/unit with 98% thermal recoverySeamless residential installation with no new energy infrastructureSuccessful edge workload testing on object detection and sensor fusion tasksSecurity and fleet orchestration frameworks aligned with DoD zero-trust architecturesThis D2P2 effort will advance WATTER to TRL 7-8 by expanding compute orchestration, enhancing secure workload routing over low-bandwidth networks, and conducting integrations with partner DoD sites. Key tasks include:Hardened system packaging for expeditionary and off-grid useSoftware-defined thermal control for optimal energy reuseLive DoD demonstrations across edge ISR, disaster response, and micro-grid scenariosCybersecurity hardening (TPM, attestation, over-the-air updates)Integration with USAF smart base and resilient infrastructure initiativesOur transition partners include Air Force Energy Infrustruture, who view WATTER as a cornerstone for resilient, distributed AI in contested logistics and austere basing. Commercial traction includes LOIs from utilities and builders seeking energy-positive infrastructure solutions.WATTER redefines the edge compute landscape: profitable, climate-aligned, and tactically resilient. This D2P2 proposal bridges the gap to DoD operational deployment and broad commercial scaling, offering a path to compute infrastructure that’s not only sustainable—but pays for itself.

Technology keywords

Not reported

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Agency intelligence

Department of Defense

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