ABB and Boston Consulting Group (BCG) have identified a growing role for direct current (DC) technologies in future power systems, with the report highlighting potential applications across manufacturing, data centres, buildings and other energy-intensive industries.
ABB said the report, The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture, examines how rising electricity demand, artificial intelligence (AI) computing, electrification and renewable energy are increasing interest in DC power systems.
The report argues that future electricity infrastructure is likely to combine alternating current (AC) and DC rather than shift entirely to one technology. While AC is expected to remain the backbone of most transmission and regional distribution networks, DC could become more prominent within facilities where technologies such as solar photovoltaics, batteries, electric vehicles, AI data centres and industrial automation systems already operate on DC.
According to ABB and BCG, reducing the number of power conversions between generation, storage and consumption could improve efficiency, increase usable capacity from existing grid connections and simplify the integration of renewable energy and storage.
AI data centres are identified as one of the most immediate drivers of DC adoption. The report states that increasing power-density requirements from AI workloads are placing pressure on conventional electrical architectures, with 800 VDC distribution emerging as a potential architecture for next-generation AI infrastructure.
The report also highlights opportunities in automation-intensive manufacturing facilities, where DC systems or subsystems could potentially reduce conversion losses, support onsite renewable generation and storage, and provide greater operational flexibility.
“In a world that will require more power while operating within the constraints of existing infrastructure, enabling broader adoption of DC systems will require stronger collaboration among business leaders, policymakers and technology stakeholders,” ABB CEO Morten Wierod said.
Wierod said broader deployment would also require common technologies, harmonised standards and workforce capabilities.
“AC and DC each have important roles to play, and together they can help build a more efficient, resilient and future-ready electrical system,” he said.
ABB and BCG said concerns around the scale, safety and economics of DC systems increasingly reflect outdated assumptions, while fragmented standards and a shortage of DC-specific skills remain challenges to wider adoption.
ABB said it has more than 700 DC-related patents and has developed DC solutions for applications including electric transport, microgrids and data centres. The company is also working with industry partners to explore DC distribution for low-carbon aluminium production and green hydrogen production.
The full report is available from ABB.
