Are Data Centres Moving to DC Power?

Key Takeaways

• DC power can cut data centre energy use by up to 15%
• Savings stem from eliminating per‑server AC‑to‑DC conversion
• Cabling and safety upgrades raise upfront DC deployment costs
• Adoption remains limited to telco and niche remote sites
• Industry discussions at APRICOT 2025 highlight AI‑driven DC interest

Pulse Analysis

Digital logic inside servers runs on DC, but traditional racks receive AC from the building grid. Each server’s internal power‑supply unit steps down the voltage, incurring conversion losses, heat, and electromagnetic noise. Consolidating that conversion to a high‑efficiency, rack‑level DC distribution unit reduces the number of active SMPSs, improving overall power factor and lowering the heat load that cooling systems must dissipate. The physics are straightforward: fewer conversion stages mean less wasted energy, a principle that has long been exploited in telecom carrier hotels and remote micro‑data centres.

The financial upside appears attractive. 12/kWh rate. Yet the capital cost curve is steeper. Specialized copper‑bared cables, arc‑fault protection gear, and redesign of power‑distribution architecture can add 20‑30 % to the initial build budget. Operators must weigh these upfront expenses against long‑term operational savings and the reduced wear on cooling infrastructure.

Industry momentum is building, driven by AI workloads that push power density to new heights. Conferences such as APRICOT 2025 highlighted DC power as a sustainability lever, and several hyperscale players are piloting row‑level DC feeds in new campuses. Nonetheless, widespread rollout faces hurdles: legacy equipment compatibility, safety training for staff, and the lack of standardized DC distribution specifications. As the cost of renewable electricity falls and carbon‑pricing schemes tighten, the economics of DC are likely to improve, positioning it as a niche but growing solution for energy‑intensive data centres.