AI Power Surge Accelerates Data Center Shift to HVDC

Rapid growth in generative AI and high-performance computing is pushing data-center power density beyond the limits of conventional low-voltage distribution. As individual rack demand moves from tens or hundreds of kilowatts toward 1 megawatt, higher currents increase conduction losses, cooling requirements and the amount of copper needed. An 800V high-voltage direct-current architecture addresses those constraints by raising voltage, reducing current and potentially eliminating conversion stages, making it a key building block for next-generation AI factories.

The transition is prompting suppliers to redesign power supplies, conversion modules and semiconductor components around 800V HVDC. Gallium nitride, or GaN, offers faster switching and higher power density, while silicon carbide, or SiC, is suited to high-voltage and high-power stages. Their adoption could shift industry value away from conventional silicon devices toward advanced power semiconductors, packaging and thermal-management systems, creating new opportunities across the AI power ecosystem as rack capacity approaches the megawatt scale.

Nvidia’s planned 800-volt high-voltage direct-current architecture is designed to support the rising power density of AI data centers and next-generation Power Racks while improving conversion efficiency. The shift is significant for Delta Electronics, a major supplier of data-center power and thermal-management equipment, because broader adoption could expand its role in the infrastructure buildout required for increasingly energy-intensive AI computing systems.

Supply-chain sources pushed back against market speculation that Nvidia’s 800V HVDC rollout had slipped to 2028, saying recent changes reflected adjustments to validation and certification schedules rather than a technical bottleneck. Delta Electronics expects to begin low-volume production by the end of the first quarter of 2027 and progressively ramp output from the second quarter. The reports did not disclose an order value or investment amount.

Generative AI is driving up rack power density, with the first data centers consuming as much as 1 GW set to emerge. Traditional 415V/480V alternating-current distribution faces constraints from copper requirements, space and conversion losses, making 800V HVDC a new direction for the industry. Delta Electronics, Lite-On Technology, Vertiv and Schneider Electric are competing to build “Grid-to-Chip” integration capabilities as power systems become critical to AI expansion.

On April 13, 2026, a U.S. brokerage raised its second-quarter revenue outlook for Delta Electronics to 18% quarter-on-quarter growth after the company’s first-quarter revenue exceeded expectations. It also estimated that the market for power systems used in NVIDIA AI racks would grow at a compound annual rate of 60% from 2025 to 2029. Vertiv announced on July 17, 2025, that it would acquire Great Lakes for $200 million, while Schneider Electric paid $850 million for a 75% stake in Motivair to strengthen its rack and liquid-cooling capabilities.