Core Viewpoint - The report from China Merchants Securities highlights the transition from traditional UPS systems to HVDC solutions in data centers due to increasing ICT equipment power density, which reveals the limitations of traditional UPS in efficiency, heat dissipation, and space utilization [1] Group 1: ICT Power Density Upgrade - The upgrade in ICT power density is driving the shift from traditional UPS to HVDC systems for primary power supply in data centers [1] - Data center power supply is structured in multiple levels, with primary power typically provided by UPS or HVDC systems, while secondary and tertiary power supplies cater to IT loads and chip-level requirements [1] - Traditional AC UPS systems are becoming inadequate in terms of load capacity, space efficiency, and economic viability, leading to HVDC becoming the mainstream technology for large and super-large data centers [1] Group 2: Development of 800V HVDC Solutions - Companies like NVIDIA are accelerating the development of 800V HVDC ecosystems by collaborating with power solution providers and upstream power device suppliers [2] - The overseas HVDC systems are more advanced than domestic solutions, incorporating components like BBU, supercapacitors, PDU, and Power Shelf, which enhance system performance and reliability [2] - Domestic HVDC solutions primarily rely on traditional architectures with lower voltage levels and lack the integration capabilities seen in overseas systems, particularly for AI load adaptation [2] Group 3: Opportunities for Chinese Companies - The large-scale adoption of HVDC may reshape the competitive landscape for traditional external power supply manufacturers, creating opportunities for Chinese companies to engage in OEM or collaborative product development [3] - Chinese firms possess advantages in power electronics technology, rapid response capabilities, and skilled engineering teams, positioning them well to enter overseas markets and achieve significant returns [3]