Zurich – September 12, 2026 -- ABB has published a report with Boston Consulting Group (BCG) arguing that direct current (DC) technology is shifting from a niche application to a central component of industrial, commercial and digital power infrastructure, with decisions made over the next two to three years determining which market players lead the transition.
800 VDC distribution emerges as defining architecture for AI infrastructure
The report identifies AI data centers as the most immediate driver of DC adoption, finding that conventional electrical architectures are reaching practical limits as AI workloads push power density requirements higher. It concludes that 800 VDC distribution is emerging as the defining architecture for next-generation AI infrastructure, enabling operators to maximize compute capacity within constrained grid connections while improving energy efficiency.
Hybrid AC/DC systems, not either-or choice, to define next electrical architecture
ABB and BCG frame the future of power distribution as a hybrid system combining AC and DC strengths rather than a binary choice. AC will remain the backbone of most transmission and regional distribution networks, while DC is expected to expand within facilities where major energy sources and loads -- including solar photovoltaic systems, batteries, electric vehicles and industrial automation -- already operate natively on direct current. Reducing power conversion steps between generation, storage and consumption can improve efficiency and increase usable capacity of existing grid connections.
Automation-intensive manufacturing and commercial buildings identified as secondary DC opportunities
Beyond data centers, the research points to automation-intensive manufacturing facilities and commercial buildings as beneficiaries of DC systems or subsystems, citing lower conversion losses, more effective integration of onsite renewables and storage, and enhanced operational flexibility. Over the longer term, buildings more broadly are flagged as a growth area for DC deployment.
Fragmented standards and skills shortages, not safety or cost, cited as main barriers
The report addresses long-standing misconceptions about DC scale, safety and economics, concluding these concerns increasingly reflect outdated assumptions rather than the capabilities of current technology. Fragmented standards and a shortage of DC-specific skills are identified as the primary challenges requiring urgent attention to accelerate deployment.
Morten Wierod, Chief Executive Officer of ABB, said broader adoption of DC systems will require stronger collaboration among business leaders, policymakers and technology stakeholders. He noted ABB's DC solutions have helped customers reduce conversion losses and improve power transfer efficiency for more than 25 years, and that common technologies, harmonized standards and workforce capabilities are needed to scale implementation where the business case is strongest.
ABB holds over 700 DC-related patents, cites 27 percent fuel savings in vessel applications
ABB was the first company to demonstrate DC's energy-saving potential in vessels, achieving fuel savings of up to 27 percent with a DC-based onboard power system, and launched the industry's first solid state circuit breaker in 2022. With more than 700 DC-related patents, the company is extending DC distribution to electric transport, microgrids and data centers, and is working with industry partners to explore how DC distribution can support low-carbon aluminum production and green hydrogen production.