Core Viewpoint - Solid State Transformers (SST) present significant advantages over traditional transformers, making them the future trend for data center DC power distribution systems [4][5]. Group 1: Advantages of SST - Traditional transformers are large, space-consuming, and only support AC power, which limits the integration of renewable energy [4]. - SSTs are compact, lightweight, and can convert between AC and DC, offering better efficiency and flexibility [4][5]. - SST solutions improve efficiency by over 3% compared to traditional UPS systems, potentially saving significant electricity costs for data centers [5]. Group 2: Commercial Logic of SST - Overseas power equipment companies have established deep partnerships with leading cloud providers and data center firms, positioning them as Tier 1 suppliers for SST products [6]. - Domestic suppliers in the SST supply chain are expected to serve as Tier 2 suppliers, providing components to overseas power equipment companies [6]. - Domestic power equipment firms are developing SST products with potential breakthroughs in direct supply to overseas cloud providers, technical collaborations, and applications in various domestic scenarios [6]. Group 3: Market Drivers and Future Outlook - The rapid advancement of AI technology and increasing capital expenditures in global data centers will sustain investment opportunities in AIDC power solutions [6]. - The release of the Rubin architecture HVDC in 2026 and the R&D progress of companies like Delta and Vertiv in 800V HVDC and SST products will act as significant catalysts for the sector [6]. - The demand for key components such as SiC, nanocrystalline alloys, and thermal materials will continue to rise with the development of mid-voltage high-frequency SST products [7].