Zurich – September 15, 2026 -- ABB and the Boston Consulting Group (BCG) have released a joint report concluding that 800-volt direct current (DC) distribution is emerging as the reference architecture for next-generation artificial intelligence data centers, as surging computing loads push conventional AC power infrastructure to its practical limits.
The report, titled "The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture," argues that decisions made by business leaders and policymakers over the next two to three years will determine which players shape the shift toward hybrid AC/DC grids and which merely inherit it.
AI data centers emerge as the immediate driver of DC adoption
Rising power-density requirements from AI workloads are exposing the ceiling of classic electrical architectures, according to the report. Distribution at 800 volts DC allows data center operators to maximize computing capacity within constrained grid connections while improving energy efficiency, the study finds.
Renewables, EVs and industrial automation reinforce the case for DC
Solar photovoltaic systems, batteries, electric vehicles and many industrial automation systems already operate natively on direct current, the report notes. Reducing the number of energy-conversion steps between generation, storage and consumption can raise usable capacity on existing grid connections and simplify integration, according to ABB and BCG.
The report also points to opportunities beyond data centers, including highly automated manufacturing sites and commercial buildings, which stand to benefit from reduced conversion losses, more efficient renewable and storage integration, and greater operational flexibility.
Standards fragmentation and skills gaps are flagged as the main barriers
ABB and BCG contend that long-standing concerns over scale, safety and cost-effectiveness of DC technology increasingly reflect outdated assumptions rather than current technical capabilities. Instead, the report identifies fragmented technical standards and a shortage of DC-specific engineering skills as the primary obstacles to faster deployment.
"Favoring wider adoption of DC systems will require closer collaboration between business leaders, policymakers and technology players, along with greater attention to the role DC can play," said Morten Wierod, President and CEO of ABB. He added that common technologies, harmonized standards and a trained workforce are needed to support large-scale implementation where the economic case is strongest.
ABB cites more than 700 DC-related patents and prior efficiency gains
ABB says it was the first company to demonstrate DC-based onboard power systems for ships, achieving fuel savings of up to 27%. In 2022, the company launched what it describes as the industry's first solid-state circuit breaker. ABB holds more than 700 DC-related patents and is now extending DC distribution to electric transport, microgrids and data centers, while working with industrial partners to explore DC applications in low-carbon aluminum and green hydrogen production.