AI Power Demand Surges as Delta Launches Power Rack and SST Growth Engines
As power consumption by Nvidia AI racks surges, high-voltage direct current systems and standalone Power Racks have emerged as key trends. Delta Electronics is moving aggressively into next-generation power distribution, using solid-state transformers, or SSTs, alongside Power Racks to convert electricity directly into 800V DC. Foreign brokerages expect the technology to improve data-center energy efficiency and become a key driver of Delta's medium- to long-term revenue growth.
Delta said in July 2026 that it had signed a memorandum of understanding with U.S. energy services provider X LABS. The companies plan an initial deployment of SST projects totaling 100 megawatts in the United States, accelerating commercialization. A European brokerage also raised its forecast for the 2025–2029 compound annual growth rate of the Nvidia AI-rack power market to 65%.
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The history behind this eventDelta Builds ‘Grid-to-Chip’ Architecture to Meet Surging AI Data-Center Power Demand
Generative AI is driving up computing density in data centers, making power supply, cooling and grid resilience bottlenecks to industry expansion. Delta Electronics believes AI competition is extending beyond chip performance to energy and infrastructure. It is therefore integrating microgrids, power conversion and liquid-cooling technologies into a one-stop “grid-to-chip” architecture.
Delta Electronics Chairman Yancey Hai said at COMPUTEX 2026 that next-generation AI racks are closing in on 1 MW of power, beyond what conventional power-delivery and air-cooling designs can handle. The company showcased its latest solid-state transformers, liquid-cooling systems and modular AI data-center solutions, which it says can cut deployment time by about 60% while improving energy efficiency and power resilience.
Delta Electronics Develops Solid-State Transformer, Joins Nvidia Rubin AI Server Power Supply Chain
Nvidia’s next-generation Rubin AI servers use an 800-volt high-voltage direct-current power architecture to accommodate rising power density in data centers. After a decade of development, Delta Electronics has produced a solid-state transformer that converts high-voltage alternating current directly into direct current, reducing losses from multiple conversion stages. The technology also extends Delta’s business beyond traditional IT power supplies into AI data-center infrastructure.
Delta has joined the supply chain for Rubin’s 800-volt high-voltage direct-current power cabinets, with related HVDC solutions expected to begin shipping in the third quarter of 2026. Reports said one solid-state transformer system costs as much as a Porsche but did not disclose an exact amount. Its core value lies in simplifying power architecture and supporting the rapidly growing electricity needs of next-generation AI factories.
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