Zurich – September 9, 2026 -- ABB and Boston Consulting Group (BCG) have released a joint report concluding that 800-volt direct current (VDC) distribution is emerging as the defining architecture for next-generation artificial intelligence infrastructure, as surging AI compute demand pushes conventional electrical systems past their practical limits.
AI data centers drive urgent shift toward DC power
The report, titled 'The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture,' identifies AI data centers as the most immediate driver of DC adoption. Rising power-density requirements from AI workloads are forcing operators to seek architectures that maximize compute capacity within constrained grid connections while improving energy efficiency.
Hybrid AC/DC systems, not full replacement, define the future grid
Rather than positioning DC as a replacement for alternating current (AC), the report frames the future of power distribution as a hybrid model combining both technologies. AC is expected to remain the backbone of most transmission and regional distribution networks, while DC gains ground in facilities where sources and loads are natively DC-based, including solar photovoltaic systems, batteries, electric vehicles, AI data centers and industrial automation equipment. Reducing power conversion steps between generation, storage and consumption can improve efficiency and expand usable capacity from existing grid connections.
Report identifies opportunities beyond data centers
ABB and BCG point to automation-intensive manufacturing plants, commercial buildings and, longer term, residential buildings as additional beneficiaries of DC systems or subsystems, citing lower conversion losses, more effective integration of on-site renewables and storage, and improved operational flexibility.
ABB CEO calls for common standards and a skilled workforce
"In a world that will need more electricity while operating within the constraints of existing infrastructure, wider adoption of DC systems requires closer collaboration between business leaders, policymakers and technology players, and greater attention to the role DC can play,