CMSC: HVDC is the upgrading trend for powering large-scale data centers. Chinese companies are accelerating the adoption.

The CMSC report states that with the continuous increase in power density of ICT devices, the bottlenecks of traditional UPS systems in terms of efficiency, heat dissipation, and space footprint are becoming increasingly prominent. HVDC, due to its high efficiency, simple structure, and better power supply radius, will become the mainstream route for powering data centers, especially large-scale data centers. Companies like Nvidia are collaborating with power and component suppliers to accelerate the development of 800V HVDC power supply solutions, and are developing new integrated solutions incorporating BBU, supercapacitors, PDU, and Power Shelf. In this transformation, Chinese companies are accelerating their adoption and are expected to receive excellent returns in the future. Key points from CMSC: - Upgrading ICT power density drives the upgrade of primary power to HVDC - Data center power supply is divided into multiple levels: first, the utility power is stepped down by transformers, and this stage commonly uses dual utility power combined with diesel generators to ensure high reliability. The primary power is regulated, filtered, and uninterruptedly supplied by UPS or HVDC systems; secondary and tertiary power are for IT loads and chip levels, gradually stepping down the power to the low voltage required by CPUs/GPUs through power supply units (PSU) and point of load (POL) power modules. Currently, overseas data centers commonly use UPS for primary power supply, but with the continuous increase in power density of ICT devices, traditional AC UPS systems are no longer able to match in terms of capacity, space efficiency, and cost-effectiveness. The more efficient, structurally simpler, and more adapted HVDC solution is gradually becoming the mainstream technical route for large and extra-large data centers. Overseas companies accelerate the research and deployment of 800V HVDC power supply solutions Companies like Nvidia are accelerating the development of the 800V HVDC ecosystem, jointly with power solution companies and upstream power component suppliers to promote the implementation of solutions. It is worth noting that the overseas HVDC system far surpasses the domestic HVDC solutions, with a complete system including BBU, supercapacitors, PDU, and Power Shelf. In contrast, domestic HVDC systems are mainly based on traditional architecture, using battery backup, no supercapacitor design, lower voltage levels (240/336Vdc), and require additional configuration of header cabinets, resulting in a significant gap in overall integration and adaptability to AI loads compared to overseas systems. Chinese companies may have good opportunities in the power supply transformation With the widespread application of HVDC, traditional overseas external power supply manufacturers (such as Eaton, Vertiv, Schneider) face the risk of reshaping the industry landscape. The longer R&D cycles have prompted them to seek Chinese companies for manufacturing or cooperative product development. The accumulated power electronics technology, rapid response capability, and high-quality engineering team of Chinese companies will be key advantages, leading to opportunities for entering the overseas system through OEM manufacturing and receiving excellent returns. Risk warning: Unexpectedly lower demand for AIDC, exacerbating trade barriers, and intensifying industry competition.