Rapid expansion of AI computing, increasing electrification and the rise of renewable energy are driving renewed interest in DC technology as part of future electrical systems.
Direct current (DC) technology is moving from the periphery to the center of industrial, commercial and digital infrastructure, says a new report from ABB developed in collaboration with Boston Consulting Group (BCG).
The report – The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture – makes the case that the future of power distribution is not an either-or choice between alternating current (AC) and direct current, but a hybrid system combining the strengths of both technologies. While AC will remain the backbone of most transmission and regional distribution networks, DC is expected to play an increasingly important role within facilities where major energy sources and loads already operate natively on direct current.
The fastest-growing technologies, including solar photovoltaic systems, batteries, electric vehicles, AI data centers and many industrial automation systems, are inherently DC-based. As these technologies scale, reducing power conversion steps between generation, storage and consumption can improve efficiency, increase usable capacity of an existing grid connection and simplify integration.
The report identifies AI data centers as one of the most immediate drivers of DC adoption. As AI workloads increase power density requirements, conventional electrical architectures are reaching practical limits. It finds 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.
Automation-intensive manufacturing facilities, commercial buildings and, over the longer term, buildings can also benefit from DC systems or subsystems through lower conversion losses, more effective integration of onsite renewables and storage and enhanced operational flexibility.
“In a world that will require more power while operating within the constraints of existing infrastructure, enabling broader adoption of DC systems will require stronger collaboration among business leaders, policymakers and technology stakeholders, as well as greater attention to the role DC can play,” said Morten Wierod, CEO, ABB. “For more than 25 years, ABB’s DC solutions have helped customers reduce conversion losses, improve power transfer efficiency and lower electricity demand. To enable broader adoption where the business case is strongest, we need common technologies, harmonized standards, and the workforce capabilities to support implementation at scale. AC and DC each have important roles to play, and together they can help build a more efficient, resilient and future-ready electrical system.”
ABB and BCG address long-standing misconceptions that have slowed DC adoption, concluding concerns around scale, safety and economics increasingly reflect outdated assumptions rather than the capabilities of today’s technologies. Fragmented standards and a shortage of DC-specific skills are seen as the primary challenges requiring urgent attention.
ABB was the first company to demonstrate the energy-saving potential of DC in vessels with a DC-based onboard power system that achieved fuel savings of up to 27%.
With more than 700 DC-related patents, ABB is bringing DC distribution to electric transport, microgrids and data centers. It is also working with industry partners to explore how DC distribution can support low-carbon aluminum production and the production of green hydrogen at scale.
