SolarEdge has published a white paper it calls a definitive strategy to address a major electrification challenge that could constrain the growth of AI data centers.
The March 2026 report, “Powering the AI Revolution: A Maturity Roadmap to Integrated 800 V DC Infrastructure,” warns that the traditional AC-based setup may soon be unable to support the increasing compute demands of the data center and AI hyperscaler industry.
A full switch to a DC setup is already overdue, and many data center providers are using intermediary solutions to switch AC to DC inside the data center. Dafna Granot, senior manager of strategy and innovation at SolarEdge, and co-author of the white paper, explained that “we live in a DC world, but we artificially insert AC in between,” adding that the electricity system has not evolved to keep up with the power demands of today’s DC-based devices. What this means is we still translate legacy AC power to DC power that the GPUs need for the data center to operate.
AC inefficiency
SolarEdge’s white paper found that this system inefficiency is costing industry. AC-powered infrastructure systems impose what the authors term a “conversion tax” – wasting an estimated 10% to 30% of input power through multiple different conversion stages. To overcome these losses, industry needs to accelerate its transition to 800 V (DC) architecture, the paper said.
Granot explained the white paper’s five-stage plan to pv magazine, adding that SolarEdge is working with industry players and research partners on raising awareness and refining it for application.
Many companies aware of the issue have already begun the transition. Granot said they fall under what SolarEdge’s white paper calls Stage 1 – where 800 V (DC) racks are introduced while preserving the existing AC infrastructure. An AC/DC sidecar unit in the white space handles the conversion. According to SolarEdge, although this approach enables high-performance computing, it consumes valuable floor space in the data center and involves significant cumulative conversion losses. Granot called it “a bandage” for the problem rather than a full, permanent solution.
Stage 2 introduces some DC power lines within the data center. “Here you still use the traditional AC chain in the beginning,” said Granot of the hybrid solution. “So, you have the traditional transformer taking the voltage from the grid to the data center to a low voltage AC, but you do introduce some DC lines within the data center.”
Crucially, the uninterruptible power supply (UPS) can now be placed on the DC side. Granot said every data center needs a UPS to ensure continuous power during outages.
In Stages 0 and 1, the UPS is on the AC side. Because UPS systems include storage and a battery, and batteries are inherently DC, this requires a double conversion – from AC to DC to charge the battery, then back to AC for distribution, and again to DC at the rack.
Placing the UPS on the DC line eliminates the additional conversions, improving efficiency to around 91% to 96%. However, a traditional transformer is still required at Stage 2 to step down grid power for use in the data center.
DC native
Stage 3 is where the transition becomes more significant, according to Granot. “It’s a step change from the previous stages and you can get from 94% to 97% efficiency,” she said. A solid-state transformer (SST) takes medium-voltage (MV) AC from the grid, simultaneously stepping down the voltage and converting it to DC. The DC power is then distributed through the data center.
“It’s a great move but it’s not the end of the game,” Granot said. That leads to Stage 4 – a fully DC-native architecture – where efficiency rises to 99%, losses are minimized, and more compute can be added per rack. Higher overall efficiency could also reduce the burden on the electricity grid, she said.
“Our aim is, here, is for a specific grid connection to really make the most of it for the data center operator and for, ultimately, for the users,” she explained. “The SST in Stage 4 is more efficient, and it also connects directly to the highest medium voltage range that is relevant for large industrial loads like data centers, which is typically 34.5 kV.”
SolarEdge is building its own SST, which it intends to bring to market as part of its DC roadmap strategy.
“This white paper reveals our broader perspective, which is to supply the whole solution, including the DC UPS, which is part of the system, and the SST which will include inherent DC distribution unit,” said Granot, adding that the system will control the distribution to the racks in the data center. She said smart algorithms will eventually be introduced to manage that distribution, including safety features.
Granot said the company will draw on its experience as a global manufacturer of DC-coupled products such as batteries and inverters. “We are the DC-couple guys; we have done DC coupled systems for years,” she said. “Now we just take this knowledge and implement it into the SST, but we will eventually be able to provide our customers with the DC UPS that connects to it which will go all the way from the grid at its highest medium voltage relevant distribution.”
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.