Company and Industry Summary Company: Schneider Electric Key Points - **North America Business**: The rectifier modules related to Zhongheng are expected to enter the supply chains of Schneider and Eaton, with HVDC solutions being a focus for 2026-2027, primarily involving upstream manufacturers of Schneider [1] - **Market Share**: In 2026, the total expected capacity for ±400V and 800V in North America is projected to be 5GW, with a penetration rate of 16%. Schneider is anticipated to hold a 20% market share, while Megmeet and Zhongheng are assumed to each capture 50%, translating to approximately 500MW to 1GW in orders [1] - **Average Selling Price (ASP)**: In 2026, the supply of edge cabinet power modules in North America is expected to be influenced by Zhongheng's technology in transformers and medium-low voltage distribution panels, allowing entry from rectifier modules to complete cabinets (leasing projects) [1] - **Technology Trends**: From 2026 to 2028, the ±400V technology route is expected to account for nearly 50% of mainstream data centers, although it is considered a transitional solution. The future mainstream power supply method for data centers and microgrids is anticipated to be 800V SST [1] - **Importance of Power Electronics**: The significance of power electronics is expected to increase as the capacity of data centers grows, indicating a short-list of critical components [1] Additional Insights - **Business Progress**: It is expected that in Q1/Q2 of 2026, there will be sample submissions and technical exchanges with North American manufacturers, with bidding and supply expected to materialize in Q3 of 2026 [2] - **Key Timelines**: The bidding process is set to finalize in Q3 of 2026, with medium-low voltage equipment requiring a lead time of three months [2] - **Domestic New Projects**: Most new projects led by Alibaba are adopting HVDC, with Tencent's penetration rate at 40-50% and ByteDance starting at over 30% in Q1 of 2026 [2] - **North American HVDC Penetration**: The penetration rate for HVDC in North America is currently low, but high voltage is rapidly penetrating the market, with an expected increase from 16% in 2026 to over 30% in 2027 [2]

Core Viewpoint - The GTC conference highlighted the transition from Power shelf to Power rack as the next-generation power solution for AI data centers, indicating a significant upgrade in the importance of power suppliers in the industry [2][4]. Group 1: Power Rack Development - The Power rack integrates multiple components such as Power shelf, BBU shelf, Super cap shelf, and PDU, enhancing the overall value and competitive barriers in the AI power supply industry [2][3][6]. - The shift to Power rack architecture addresses the increasing power demands of advanced computing nodes while optimizing space utilization within data center racks [4][6]. Group 2: SST Technology - SST (Solid State Transformer) is identified as the future power supply technology, capable of converting high voltages (10-34.5KV) to 800V DC, facilitating modular design and voltage adaptability across different regions [3][12]. - The implementation of SST technology is expected to reduce power loss significantly by increasing voltage levels, thus minimizing current and associated losses [15][19]. Group 3: Super Capacitor Benefits - The use of super capacitors can significantly reduce power supply volatility, with Delta's data showing a reduction in supply fluctuation from 73% to 6% [20][24]. - Different super capacitor technologies exhibit varying characteristics, with EDLC offering longer cycle life and LiC providing higher energy density, which can enhance the dynamic load capacity of GPUs in AI data centers [21][22]. Group 4: Future Roadmap - NVIDIA anticipates the gradual application of the Rubin and Feyman architectures between 2026 and 2028, which will further accelerate the adoption of Power rack solutions [11][12]. - Google's roadmap for data center power architecture evolution indicates a transition towards higher voltage levels and modular designs, aligning with the industry's shift towards SST solutions [13][15].