800VDC data center architecture is a gradual opportunity, while SST remains at an early commercialization stage

Overview

This report summarizes J.P. Morgan's conference call highlights on Asian power equipment companies in 800VDC data center architecture and SST commercialization. The core conclusion is that rising power density in AI data centers is driving the power delivery chain from the traditional multi-stage AC/low-voltage DC architecture toward 800VDC, but this transition will occur in stages. In the short term, 800VDC is more like a peripheral or transitional configuration rather than a full replacement of the existing AC backbone; in the long term, if SST matures, it could directly convert medium-voltage AC to 800VDC, improving efficiency and reducing equipment footprint.

Core views

The importance of the 800VDC architecture lies in product mix change rather than simple volume substitution. Traditional medium-voltage access equipment, step-down transformers, and a large amount of non-IT AC load will remain, but the demand structure for low-voltage electrical equipment may change, while demand rises for power-electronics solutions such as rectifiers, DC distribution, dedicated DC protection and switching, and SSTs. The report believes the commercialization pace will be gradual: traditional architectures will still dominate in 2026-2027; 800V-native racks and related equipment will begin scaling from 2H 2027 to 2028; and more concentrated architectures and small-batch SST commercialization are more likely only after 2028.

Analysis framework

The report is based on recent investor discussions, company management conference calls, expert calls, and comparisons of global peer product status. It reviews 800VDC architecture migration, the technical value of SST, commercialization bottlenecks, company prototype/order progress, and regional market opportunities, while horizontally comparing the beneficiary pathways of Chinese, Korean, and overseas power equipment manufacturers.

Methodology notes

• Thematic industry chain researchArchitecture migration impact analysis

  800VDC data center power supply chain restructuring

  By comparing the traditional multi-stage chain of AC/UPS/PDU/server PSU/VRM with the 800VDC architecture, the analysis determines which equipment segments are retained, reduced, or added, and then maps these changes to revenue opportunities and risks for power equipment companies.

• Company conference call researchManagement key points summary

  Commercialization validation of SST and data center equipment

  The report compiles progress by companies such as Sifang Automation, China XD, TGOOD, and Wasion in prototypes, orders, certifications, partners, and overseas markets to assess commercialization maturity.

• Expert interviewsSST commercialization bottleneck framework

  Standards, reliability, alternative solutions, and economics

  Experts believe SST is constrained by unsettled specification standards, insufficient reliability validation, the fact that existing 800V HVDC solutions are already sufficiently usable, and cost pressure from SiC and other components; among these, standards and reliability are more critical constraints than cost.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Delta Electronics (2308 TT)

  One of the global leaders in 800VDC/SST; listed in the report as a related OW name

  Strengths

  Early start in R&D, high industry recognition, and already possessing substantial deployment and operating data; experts believe its real deployment experience is leading.

  Weaknesses

  The report does not provide details on its specific order scale or earnings elasticity.

  Comparison

  Compared with most Chinese manufacturers, Delta's advantage lies mainly in real deployment data and industry recognition rather than purely hardware capability.

  Risks

  If 800VDC/SST standards are delayed or large-scale adoption is postponed, related growth realization may be slower than expected.

• Mitsubishi Electric (6503)

  Listed in the report as a global 800VDC-related OW name, and noted as developing power systems compatible with 800V and SST architectures

  Strengths

  Has capabilities in power conversion, integrated cooling, and data center solutions, and has strengthened its SST positioning through acquisitions.

  Weaknesses

  The table information in the report contains recognition noise, so specific revenue targets should be interpreted cautiously.

  Comparison

  More of a global integrated electrical and data center solutions provider than a pure SST product manufacturer.

  Risks

  Uncertainty around technology pathways, standards, and customer deployment pace.

• TGOOD Electric (300001.CH)

  A beneficiary of high-voltage prefabricated substations and data center power solutions; listed in the report as a global 800VDC-related OW name

  Strengths

  Has advantages in 110kV+ prefabricated substations, data center high-voltage power supply, and modular solutions; domestic data center orders are strong, and it is cooperating with Eaton to develop data center power supply solutions.

  Weaknesses

  Its first-generation SST product is still in grid-connected trial operation and has not yet been commercially launched; large-scale commercialization still needs time.

  Comparison

  Compared with pure SST manufacturers, TGOOD places more emphasis on system-level solutions, integrating high-voltage prefabricated cabins, MV switchgear, low-voltage power supply, and power electronics together.

  Risks

  There is uncertainty around large Middle East orders, overseas revenue recognition, SST mass production, and the adoption pace of data center customers.

• Sifang Automation (601126.CH)

  A potential beneficiary of SST prototypes and North American commercialization; not covered/no rating by J.P. Morgan

  Strengths

  Its SST technology comes from China's medium-voltage DC distribution pilots, and it has core technology, prototypes, MVDC system capability, and project delivery experience; it is entering North American CSP customers through cooperation with Vertiv.

  Weaknesses

  The North American market still requires adaptation to 13.8kV and 34.5kV systems, certification standards are not yet mature, and certification and validation are still needed before mass deployment.

  Comparison

  Compared with Delta, its hardware capability may not necessarily be inferior, but it still needs to build up real deployment data and overseas certification/channels.

  Risks

  Certification, reliability, customer pilot scale, and cost declines may fall short of expectations.

• China XD (601179.CH)

  A beneficiary of initial overseas data center SST orders and domestic UHV/grid cycle; not covered/no rating by J.P. Morgan

  Strengths

  Has already obtained 4 orders for 13.8kV SSTs from overseas data centers and has operating experience with domestic data center SSTs; its traditional business is supported by domestic grid and UHV cycles.

  Weaknesses

  The overseas SST order scale is still small, with limited short-term revenue contribution, and is more strategically significant than immediately impactful on earnings.

  Comparison

  Compared with TGOOD, China XD's strengths are more concentrated in traditional high-voltage electrical equipment and grid/UHV foundations, while its data center system solutions are still under validation.

  Risks

  Delivery performance, overseas partner expansion, domestic grid order pace, and raw material costs will all affect realization.

• Wasion Holdings (3393.HK)

  A growth name in data center electrical equipment and smart meters; disclosed in the report as OW

  Strengths

  Strong demand for overseas data center equipment, with orders driven by Southeast Asian customers and overseas expansion by Chinese data center operators; its Mexico factory has obtained UL certification for transformers and has started receiving orders from U.S. grid customers.

  Weaknesses

  Its domestic meter business in 1H26 was affected by recognition of low-priced legacy orders and rising copper prices, putting short-term gross margin under pressure.

  Comparison

  Compared with SST manufacturers, Wasion's benefit exposure is more toward data center electrical equipment, overseas construction, and meter product upgrades.

  Risks

  There is uncertainty around overseas delivery, UL meter certification, copper prices, gross margin recovery in domestic meter orders, and the pace of China data center investment.

• HD Hyundai Electric、Hyosung Heavy Industries

  Korean high-voltage transmission and transformation equipment companies, relatively mildly affected by the 800VDC architecture migration

  Strengths

  Their businesses are mainly focused on grid and utility high-voltage transmission equipment, with less exposure to substitution risk in data center products below 100kV.

  Weaknesses

  If their 800VDC-related R&D is unsuccessful, incremental revenue opportunities will be limited.

  Comparison

  Compared with LS Electric, they are less negatively affected because of lower exposure to low-voltage data center products.

  Risks

  Failure in new architecture product R&D and cyclical fluctuations in traditional grid orders.

• LS Electric

  Has relatively high exposure to Korean low-voltage distribution transformers and may simultaneously face substitution pressure and incremental SST/rectifier opportunities

  Strengths

  Plans to commercialize SSTs and rectifiers over the next two years and may benefit from incremental DC data center construction.

  Weaknesses

  Demand for low-voltage distribution transformers may come under pressure due to the 800VDC architecture migration, although margins for such products are relatively low.

  Comparison

  More sensitive than Korean high-voltage equipment peers to product mix changes in low-voltage data center equipment.

  Risks

  Declines in low-voltage product demand may outpace the revenue ramp-up of SSTs/rectifiers.

Key data

• Commercialization timeline2H 2027 to early 2028Multiple companies expect early commercialization of SST and related products to concentrate in late 2027 or 1H28; after 2028, they are more likely to enter the small-batch scaling stage.
• AI rack power densityAbout 600kW, eventually developing toward 1MW+The report notes that at this power density, the traditional 48V/54V architecture faces constraints in current, heat dissipation, rack space, and copper loss.
• Traditional power delivery chain efficiencyUsually below 90%Experts say SST solutions have the potential to improve total system efficiency by more than 5 percentage points while reducing losses, heat, and operating costs.
• SST equipment footprint advantageAbout 1/5 to 1/10 of traditional solutionsExperts believe SST can significantly reduce the space occupied by transformers and power distribution equipment, supporting higher power density.
• Sifang Automation progress10kV/2.4MW SST product; 13.8kV development brought forwardThe company plans to advance key validation and certification milestones in the first half of next year and seek potential initial commercial orders in the second half of next year; Vertiv is the main go-to-market partner.
• China XD overseas orders4 units of 13.8kV SSTThe orders came from overseas data center customers via business partners, with delivery targeted around the end of this year or early next year; the company had also supplied 3 SST units to a domestic data center in 2023 and uses 1 unit internally.
• TGOOD domestic data center ordersRmb 400-500mn YTD, with new order guidance above Rmb 800mnThe company said domestic data center orders YTD have exceeded FY25 levels, and it holds about 50% market share in data center high-voltage prefabricated substations.
• TGOOD potential Middle East ordersSaudi Energy 3Q prefabricated substation tender total of Rmb 4-6bnIf it secures about a 50% share, J.P. Morgan estimates TGOOD's contract value would exceed twice its roughly Rmb 1bn FY25 level.
• Wasion data center businessRevenue expected to roughly triple, with 1H data center orders up more than 150% YoYGrowth is mainly driven by overseas data center construction, especially from Southeast Asia and overseas expansion by Chinese data center operators.
• LS Electric potential incrementAbout KRW 300bn/GW of DC data center constructionThe company plans to commercialize SSTs and rectifiers within the next two years, but demand for low-voltage distribution transformers may be affected by the architecture migration.

Impact & implications

For investors, 800VDC and SST are not a story of full replacement in the short term, but rather a medium- to long-term structural opportunity arising from upgrades in data center power architecture. The most direct beneficiaries may be manufacturers with capabilities in power electronics, DC distribution, rectification, SST, data center prefabricated substations, and overseas customer channels; traditional high-voltage transmission and transformation companies are less negatively affected, while companies with heavier exposure to low-voltage equipment may face pressure from product mix migration. Investors should focus on distinguishing companies that have already obtained prototypes/orders/validation scenarios from those that have only launched concept products.

Risks

• 800VDC and SST standards have not yet been finally determined, which may delay equipment makers' product roadmaps and project owners' investment decisions.
• Data centers have extremely high requirements for power supply reliability, and long-cycle operating data and large-scale field validation for SSTs remain insufficient.
• Existing 800V HVDC solutions are already sufficiently usable in some scenarios, which may weaken the near-term economics and necessity of SSTs.
• Rising costs of key components such as SiC may constrain SST system cost declines and customer willingness to adopt.
• Most companies are still at the prototype, pilot, or small-order stage, and true mass-production capability and large-scale orders have not yet been fully validated.
• If overseas order delivery, certification, channel cooperation, and customer acceptance do not proceed smoothly, Chinese manufacturers may struggle to establish reference cases.

What to watch

• Whether Nvidia and the data center supply chain form clearer 800VDC/SST technical specifications and safety standards.
• The actual order pace for 800V-native racks, rectifiers, DC distribution, and SSTs during 2H 2027 to 2028.
• Progress of certification, prototype validation, and first commercial orders for Sifang Automation and Vertiv in the North American market.
• Delivery, operating performance, and follow-on replication opportunities for China XD's 4 overseas 13.8kV SST orders.
• TGOOD and Eaton's joint solution, mass production of AIPowerHouse/SST2.0, and the result of Saudi prefabricated substation tenders.
• Realization of Wasion's overseas data center orders, expansion of U.S. orders from its Mexico factory, and progress in UL meter certification.
• Product status, deployment cases, and accumulation of operating data by overseas peers such as Delta, Mitsubishi, Eaton, and Schneider.