NVIDIA 800-volt voltage "revolution": Global data centers face the largest infrastructure overhaul in history

As the artificial intelligence arms race enters a new phase, NVIDIA is leading a revolutionary shift in global data centers towards an unprecedented power supply architecture: transitioning the voltage standard from traditional alternating current to 800-volt direct current.

Recently, NVIDIA announced over a dozen partners, including CoreWeave and Oracle, aimed at preparing for an 800-volt direct current power architecture and ultra-high-density computing environments with a single cabinet power density reaching 1 megawatt (MW). This shift is intended to support its next-generation "Vera Rubin" architecture and "Kyber" system, which is expected to debut in 2027, integrating 576 GPUs in a single cabinet, with power and cooling system requirements far exceeding the current 415-volt alternating current architecture's limits.

Goldman Sachs noted in its latest research report that this technological leap signifies a significant shift in the focus of capital expenditures for data centers. Investors have begun to reassess the winners and losers in the capital goods sector, as this not only represents an expanding infrastructure financing gap but also means that the entire supply chain, from transformers and circuit breakers to cables and cooling systems, will face mandatory technological upgrades and replacements.

Although NVIDIA anticipates that this architecture could reduce total cost of ownership (TCO) by 30% in the long term, it undoubtedly poses a significant capital expenditure barrier in the short term. This transformation forces operators to procure millions of new devices, triggering the first large-scale hardware upgrade cycle in the industry.

Breaking Physical Limits: From Tens of Kilowatts to Megawatt Leap

The core driving force behind data centers' transition to the 800VDC architecture is the exponentially increasing power density demand of modern AI cabinets. Current cabinet power is rapidly expanding from tens of kilowatts to over 1 megawatt, surpassing the physical handling capacity of traditional 54V or 415/480VAC systems.

NVIDIA pointed out that compared to traditional alternating current systems, the 800VDC architecture can transmit over 150% more power on the same copper conductors, significantly enhancing energy efficiency. This architecture not only reduces copper usage by up to 45% but can even eliminate the heavy copper busbars weighing 200 kilograms required to power a single cabinet.

To accommodate this extreme power density, NVIDIA's next-generation Vera Rubin NVL144 rack design employs 45°C liquid cooling technology and new liquid-cooled busbars, increasing energy storage capacity by 20 times to maintain power stability. Its subsequent product, the Kyber system, will include 18 vertically rotating computing blades arranged like "books on a shelf" to support the growing inference demands.

Infrastructure Reconstruction: The Comprehensive Takeover of Direct Current and Liquid Cooling

Goldman Sachs analyst Daniela Costa elaborated on the specific impacts of this transformation on infrastructure in her report. The most significant change is that traditional alternating current power distribution units (AC PDUs) and uninterruptible power supply (UPS) systems will become unnecessary. The 800VDC architecture requires a more streamlined power path, replacing decentralized UPS units with centralized battery storage systems at the facility level. This facility-level large battery system can manage power fluctuations and ensure grid stability, thereby reducing the demand for AC PDU cabinets by up to 75% For existing data centers, to adapt to this trend before a complete reconstruction, the "Sidecars" model will become a key transitional solution between 2025 and 2027. These modules can be installed on both sides of the rack, converting the incoming AC power to 800VDC and providing integrated short-term energy storage to smooth out GPU load peaks. Schneider Electric, as a key supplier of such equipment, is clearly targeting the rack market of up to 1.2MW.

Moreover, as rack power moves towards 1.2MW, traditional air cooling systems are unable to cope, and liquid cooling technology will become the absolute mainstream. Schneider Electric has significant exposure in this area through its Motivair assets, and Vertiv has also released an 800VDC MGX reference architecture that combines power and cooling infrastructure.

Supply Chain Reshuffle: Who are the Beneficiaries of Capital Expenditure?

This technological paradigm shift is redefining market shares in the capital goods industry. Goldman Sachs mentioned in a report that Legrand expects the transition to higher voltages to drive revenue potential per megawatt from €2 million in traditional data centers to a potential €3 million. Although currently three-quarters of rack power is still below 10kW, the industry anticipates that the 800VDC architecture may become the mainstream choice for 80-90% of new data centers in the future.

In the power semiconductor field, the transition to 800VDC requires more advanced chips, particularly silicon carbide (SiC) and gallium nitride (GaN), to handle higher voltages and frequencies. Suppliers including Analog Devices, Infineon, STMicroelectronics, and Texas Instruments are actively positioning themselves.

In terms of power protection and switching equipment, mechanical circuit breakers are being replaced by solid-state protection devices. ABB's current SACE Infinitus is considered the world's first IEC-certified solid-state circuit breaker, designed specifically for DC distribution, giving ABB an advantage in areas such as MV DC UPS systems. Meanwhile, cable giants like Prysmian and Nexans are also developing high-end cable solutions that adapt to DC power and liquid cooling demands.

Timeline and Costs: The Critical Point in 2027

Although the prospects for this transformation are broad, the full commercialization of the transition will take time. NVIDIA expects the transition to 800VDC data centers to coincide with the deployment of its Kyber rack architecture, with a target timeline of 2027. Goldman Sachs anticipates that the commercialization of related technologies will begin to show scale effects around 2028.

Jim Simonelli, Chief Technology Officer of Schneider Electric's data center division, stated that the migration to 800VDC is a "natural evolution" as computing density increases. Although this can reduce operating costs and maintenance expenses in the long run, for data center operators who must pay this bill, it means that in the next five years, in addition to addressing the known $5 trillion AI funding gap, they will need to make substantial additional investments for this largest infrastructure overhaul in history