800V DC Data Center Architecture Is a Gradual Opportunity, Not an Immediate Replacement for the Traditional AC Power Chain

Overview

Based on a series of company and expert calls, this report discusses the implications for Asian power-equipment companies of AI data centers evolving from traditional AC architectures toward 800V DC/HVDC architectures. The core conclusion is that 800V DC will move AC-to-DC conversion closer to the front of the power architecture and alleviate current, thermal, rack-space and copper-consumption pressures in high-power-density rack applications; however, it will not fully replace the existing AC backbone in the near term, and traditional medium-voltage incoming systems, transformers and some AC loads will remain.

Core views

The report believes 800V DC adoption will be gradual. Traditional solutions will remain dominant in 2026–2027, while 800V-native racks may begin scaling from the second half of 2027 into 2028; more centralized architectures and SST solutions are more likely to emerge after 2028. Chinese manufacturers already have early participation opportunities in SST, prefabricated substations and data-center power solutions; Korean high-voltage transmission and distribution companies are less affected, although some low-voltage distribution transformer demand at LS Electric may come under pressure.

Analysis framework

The report cross-validates the technical path, commercialization timeline, supplier landscape and company-specific business exposure of 800V DC architectures by combining investor concerns, company management calls, expert calls and overseas peer product developments. The analytical focus is not on financial forecasts for a single company, but on mapping changes in the power chain to opportunities across equipment categories and listed companies.

Methodology notes

• industry_structureData-center power-architecture transition analysis

  Evolution from an AC backbone and multiple conversion stages toward 800V DC/HVDC and, over the longer term, SST solutions

  The report assesses demand beneficiaries and negatively affected segments based on changes in their positions within the power chain: traditional transformers and medium-voltage equipment remain relevant, the low-voltage equipment mix may change, and opportunities increase for rectifiers, DC distribution, protection switches and SST.

• commercialization_timingPilot-to-scaled-adoption framework

  Pilot validation, certification, reliability data and standards maturity determine the pace of scaling

  The report characterizes near-term activity as pilots, scenario validation and reliability learning, identifies late 2027 through 2028 as the early commercialization window, and considers the period after 2028 a possible phase for broader SST adoption.

• company_mappingProduct exposure and partner mapping

  Company opportunities categorized by exposure to SST, HVDC, prefabricated substations, overseas channels and data-center orders

  The report places Sifang, China XD, TGOOD, Wasion, Delta Electronics, Mitsubishi Electric, Eaton and other companies within the supplier landscape, comparing their technical capabilities, order leads, channel partnerships and commercialization timelines.

Asset mapping & comparison

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

• Sifang Automation (601126.CH, NC)

  Potential participant in SST prototypes and North American data-center power architectures

  Strengths

  Has SST technology, prototype products, MVDC system capabilities and project-delivery experience from Chinese medium-voltage DC distribution pilots; has iterated from 500kW to 10MW and launched a 10kV/2.4MW SST.

  Weaknesses

  The North American market still requires 13.8kV and 34.5kV adaptation, validation and certification; the traditional protection and automation market is mature, limiting room for share gains.

  Comparison

  Not clearly behind domestic peers on the hardware side, but compared with overseas leaders such as Delta Electronics, it still trails in accumulated real-world deployment and operating data.

  Risks

  Immature standards, changing certification requirements, lengthy validation cycles before mass deployment and slower-than-expected cost reductions.

• China XD (601179.CH, NC)

  Beneficiary of overseas data-center SST orders and the domestic grid/UHV cycle

  Strengths

  Has secured four 13.8kV SST overseas data-center orders and has domestic data-center SST supply experience from 2023; its traditional grid business is supported by UHV tenders and the 15th Five-Year Plan project pipeline.

  Weaknesses

  Overseas SST orders are currently small in scale and represent reference cases rather than a near-term revenue driver.

  Comparison

  Compared with TGOOD, it is more focused on traditional high-voltage electrical equipment and the grid cycle, while its SST data-center business remains at an early validation stage.

  Risks

  Final confirmation of technical solutions, procurement and manufacturing tests, delivery performance, overseas partner channels and post-project evaluation will all affect subsequent scaling.

• TGOOD Electric (300001.CH)

  Beneficiary of high-voltage prefabricated substations for data centers and system-level 800V DC solutions

  Strengths

  Chinese data-center orders year to date have already exceeded FY25 levels, with management expecting more than Rmb 800mn for the full year; it is developing prefabricated data-center power solutions with Eaton and has advantages in 110kV+ products and prefabricated-cabin systems.

  Weaknesses

  Its first-generation SST is still undergoing grid-connected trial operation and has not yet been commercially launched; true industrial-scale deployment is not expected to be considered until at least the second half of next year.

  Comparison

  Compared with pure-play SST equipment suppliers, TGOOD is differentiated by a system solution integrating high-voltage prefabricated cabins, MV switchgear, LV power supply and power electronics.

  Risks

  Its awarded share of Middle East orders, the pace of FY27 revenue recognition, progress on SST mass production lines, execution of the Eaton partnership and overseas expansion.

• Wasion Holdings (3393.HK, OW)

  Growth stock exposed to data-center power equipment and metering

  Strengths

  Data-center orders increased by more than 150% year on year in 1H, with management expecting data-center revenue to approximately triple this year; demand from Southeast Asian and overseas colocation customers is strong, while its Mexico plant has obtained UL transformer certification and received orders from US grid customers.

  Weaknesses

  Its domestic metering business faced margin pressure in 1H26 from the recognition of low-priced legacy grid orders and copper costs.

  Comparison

  Compared with the pure SST technology route, Wasion’s nearer-term drivers are more related to overseas data-center construction, new metering standards and progress in US certification.

  Risks

  The pace of overseas data-center investment, progress of UL meter certification, copper prices, domestic grid-order pricing and 2H delivery execution.

• Delta Electronics (2308 TT, OW)

  Global leader in 800V DC/SST and valuation reference

  Strengths

  Started development relatively early and is viewed by experts as a first-tier player; it has accumulated deployment and operating data and is a highly recognized SST/800V DC participant.

  Weaknesses

  Large-scale commercialization still depends on the ramp-up of HVDC power racks and market maturity after 2028.

  Comparison

  Compared with most Chinese manufacturers, Delta’s main advantages are real-world deployment, operating data and industry recognition.

  Risks

  Slower-than-expected ramp-up of 800V-native racks, changes in standards, and uncertainty around costs and customer adoption.

• Mitsubishi Electric

  One of the global 800V DC-related OW names, with exposure to power conversion and integrated data-center solutions

  Strengths

  Actively developing SST-compatible systems and positioning data-center solutions as a medium- to long-term growth area.

  Weaknesses

  The report discloses limited specific SST commercialization cases, with the timeline skewed toward the medium to long term.

  Comparison

  More aligned with the path of a large integrated electrical-equipment provider, covering power conversion and integrated cooling solutions.

  Risks

  Delivery against FY2030 business targets, progress in SST system integration and the speed of data-center customer adoption.

• Korean power equipment companies

  Read-through of 800V DC for Korean power-equipment companies

  Strengths

  Hyundai Electric and Hyosung Heavy mainly focus on grid and utility high-voltage transmission equipment and are relatively less affected by product substitution in sub-100kV data-center applications; successful R&D could generate incremental revenue.

  Weaknesses

  Demand for LS Electric’s low-voltage distribution transformers may be affected by the shift toward 800V DC conversion, although this product has relatively low margins.

  Comparison

  Korean high-voltage equipment companies are more defensive than low-voltage data-center equipment suppliers.

  Risks

  Declining demand for low-voltage products, uncertainty over R&D commercialization and faster-than-expected data-center architecture transitions.

Key data

• Commercialization windowEarly commercialization begins in late 2027 or 1H28; large-scale SST adoption is more likely after 2028Multiple company and expert calls indicate that standards, certification and reliability validation still require time.
• Traditional architecture efficiencyOverall efficiency is typically below 90%Experts state that traditional line-frequency transformers plus UPS chains have relatively low efficiency, while SST solutions may improve total system efficiency by more than 5 percentage points.
• SST volume advantageEquipment volume may be reduced to approximately one-fifth to one-tenth of that of traditional solutionsExperts believe this would help free up data-center space and support higher power density.
• Potential LS Electric revenue opportunityApproximately KRW 300bn per GW of DC data-center constructionThe company plans to commercialize SSTs and rectifiers within two years, although low-voltage distribution transformer demand may come under pressure.
• Sifang Automation orders and product progressHas launched a 10kV/2.4MW SST and is advancing 13.8kV adaptation; potential initial commercial orders targeted for the second half of next yearVertiv is the primary go-to-market partner, while the North American market requires adaptation to 13.8kV and 34.5kV systems.
• China XD overseas SST ordersFour 13.8kV SST overseas data-center ordersThe order size is small but strategically significant, with delivery targeted around the end of this year or early next year.
• TGOOD China data-center ordersRmb 400–500mn added year to date, with full-year guidance above Rmb 800mnThe company says it has approximately 50% market share in the high-voltage prefabricated-substation market for data centers.
• TGOOD Middle East opportunitySaudi Energy is expected to launch Rmb 4–6bn of tenders in 3Q; a roughly 50% share could result in contract value exceeding twice FY25 levelsManagement expects revenue recognition in FY27 to be more meaningful.
• Wasion data-center orders1H data-center orders increased by more than 150% year on year, and management expects data-center revenue to approximately triple this yearGrowth is primarily driven by overseas data-center construction and Southeast Asian customers.
• Wasion metering businessDomestic electricity-meter orders exceeded Rmb1bn in 1H, while ASPs for meters under the new standard are approximately 20% higher1H26 margins were affected by the recognition of low-priced legacy orders and copper prices, with improvement expected in 2H26E.

Impact & implications

For investment implications, the more important effect of 800V DC is a change in the equipment demand mix rather than a simple replacement of all existing power equipment. Medium- and high-voltage equipment and transformers should remain resilient, while traditional low-voltage distribution equipment may face structural pressure; companies with exposure to SST, HVDC, rectifiers, DC protection, prefabricated substations, overseas channels or data-center customers may capture incremental growth. The report is relatively positive on opportunities for TGOOD, Wasion and certain Chinese SST suppliers, but remains cautious about the commercialization pace.

Risks

• Standards and specifications related to 800V DC and SST have not yet been finalized, potentially delaying vendor roadmaps and owner investment decisions.
• Data centers have extremely high power-reliability requirements, while long-duration SST operating data and field validation remain insufficient.
• Current 800V HVDC solutions are already adequate in some applications, which may weaken the economics and urgency of SST.
• Higher costs for SiC devices and other components may raise system costs, although experts believe cost is not the most critical bottleneck.
• Large-scale commercialization may occur later than the expected late-2027 to 2028 window, delaying orders and revenue recognition.
• Overseas expansion by Chinese manufacturers depends on certification, partners, channels and delivery reference cases, creating relatively high execution risk.
• Traditional low-voltage equipment manufacturers may face pressure from demand migration, particularly in categories such as low-voltage distribution transformers.

What to watch

• Whether Nvidia and the data-center supply chain establish clearer 800V DC/SST product specifications and safety standards.
• The actual order scale of 800V-native racks, centralized row-scale 800V distribution and SST pilots from late 2027 through 2028.
• Product validation, certification and initial commercial-order progress for Sifang with Vertiv, TGOOD with Eaton, and China XD with US power-equipment partners.
• Production ramp-up and customer-deployment timelines for overseas peers including Delta Electronics, Mitsubishi Electric, Eaton and Schneider Electric in 800V DC/SST products.
• Whether TGOOD’s domestic data-center orders, Saudi Energy tenders in the Middle East and FY27 revenue recognition are realized.
• Wasion’s data-center order growth, US customer orders from its Mexico plant, UL meter certification and 2H26E margin recovery.
• Commercialization progress of Korean companies’ R&D in SST, rectifiers and 800V DC products, as well as changes in LS Electric’s low-voltage equipment demand.