Summary of Key Points from the Conference Call on 800 VDC Shift Industry Overview - The report focuses on the **data center industry** and the transition to **800 VDC (Volts Direct Current)** architecture, driven by the increasing power demands of AI training and inference workloads [2][12][56]. Core Insights and Arguments 1. **Adoption Timeline**: - 800 VDC adoption is expected to begin with NVIDIA's new platforms, Rubin Ultra and Feynman, launching in **2027 and 2028** respectively. It is projected that **10%** of AI training additions will adopt 800 VDC in **2027**, increasing to **80%** in **2028**, and reaching **100%** from **2029** onwards [3][4]. 2. **Market Impact**: - By **2030**, it is estimated that **15%** of global data center capacity and **25%** of GW additions will feature 800 VDC. The adoption will phase in as follows: **5%** in **2027**, **35%** in **2028 & 2029**, and **45%** in **2030** [4][39]. 3. **Electrical Content Changes**: - The transition will involve three phases of electrical content change, significantly reducing reliance on legacy AC equipment. Phase 1 will see a **-40%** reduction in AC PDUs by **2030**, Phase 2 will reduce UPS for IT loads by **-60%**, and Phase 3 will replace switchgear and transformers with solid-state transformers, leading to reductions of **-25%** and **-80%** respectively [5][27]. 4. **Growth Opportunities**: - Despite the challenges, three growth opportunities are identified: - New 800 VDC equipment, including sidecars and solid-state transformers. - Liquid cooling systems that scale with power density. - Automation technologies that enhance power, thermal, and compute management [6][10]. 5. **UPS Market Outlook**: - The UPS market is expected to grow at a low double-digit CAGR over the next five years, despite a **-60%** reduction in the total addressable market (TAM) for UPS related to IT loads by **2030**. UPS for thermal loads linked to liquid cooling distribution units is projected to grow at approximately **30%** per annum [7][10]. 6. **Net Impact on Growth**: - The overall impact of the 800 VDC shift is projected to be modestly negative, with a **<2pp** annual headwind to growth by **2030**. The shift is expected to result in a **-12%** reduction in TAM, equating to **-$0.65B/GW** from an all-in **$5.5B/GW** [8][40]. Additional Important Insights 1. **Investment Implications**: - Companies with exposure to liquid cooling and UPS businesses, such as **Schneider**, **Eaton**, and **Vertiv**, are viewed positively. Automation is also highlighted as a critical area for growth due to the increasing complexity of AI data centers [10][45]. 2. **Key Players Affected**: - Companies like **Schneider**, **Eaton**, and **ABB** are expected to be significantly impacted by the 800 VDC transition, with a need to develop solid-state transformer capabilities to remain competitive [10][50]. 3. **Market Dynamics**: - The report emphasizes the importance of understanding the evolving landscape of data center architecture and the potential for new entrants and technologies to disrupt traditional suppliers [10][50]. 4. **Safety and Regulatory Considerations**: - The transition to 800 VDC presents operational and safety risks, necessitating new certifications and standards, which could impact the speed of adoption [83][84]. 5. **Future Projections**: - The report anticipates that the 800 VDC architecture will become increasingly relevant for inference workloads post-2030, primarily due to efficiency gains rather than immediate power density requirements [92][93]. This summary encapsulates the critical insights and projections regarding the shift to 800 VDC in the data center industry, highlighting both the challenges and opportunities that lie ahead.