Data Centers Reshape the Power Order... Integrated Design and Modular 'DC Solutions' on the Rise [Era of DC] ③

Comprehensive System Design for Data Centers
Implementation of DC Distribution at the Building Level
Accelerating Facility Construction with "Mobile Modules"

As competition in the artificial intelligence (AI) data center sector intensifies, the method of power delivery is shifting from simple equipment supply to “integrated design and packaged solutions.” With the importance of delivering large volumes of power in a timely manner, companies are moving beyond merely connecting power lines. They are now designing and supplying entire direct current (DC) distribution systems or deploying modular facilities near data centers.

According to the power industry on April 22, as AI data centers emerge as core infrastructure, power companies are being required to ensure both “stable supply of high-capacity power” and “optimization of system efficiency.” This trend coincides with Nvidia’s roadmap for DC-based data centers, prompting power equipment companies to accelerate the development of high-efficiency, data center-specific power systems.

The LS Electric Cheonan DC Factory located in Cheonan City, Chungnam Province, as of December 20th last year. Photo by Jinhyung Kang

The latest approach gaining attention is the “integrated package” strategy, which involves designing comprehensive systems for data center power delivery. Instead of providing substation, distribution, and power conversion equipment separately, these are bundled together in a single integrated package. This strategy shortens construction time for both suppliers and customers, while maximizing efficiency.

The integrated power supply method has already been attempted at the building level. Korea Electric Power Corporation (KEPCO) is working to build a “DC technology-intensive zero-energy building” at its Gyeonggi regional headquarters, aiming for completion by 2030. In 2023, HD Hyundai Electric also applied a DC distribution system for the first time at the HD Hyundai Global Research & Development (R&D) Center in Pangyo, Gyeonggi Province.

Furthermore, the “Cheonan DC Factory”—a collaboration among KEPCO, LS Electric, and LG Electronics—represents the first case in Korea where the entire power supply system was constructed exclusively for DC use. This system, which began operation this year, integrates power sources, networks, and loads in DC to supply a range of DC-based equipment, including heating and cooling systems, electric vehicle chargers, and industrial inverters.

To keep pace with the rapid increase in data center construction, the “mobile module (skid)” method—pre-fabricating power equipment and installing it on-site—is also attracting attention. Global power infrastructure company Eaton has launched a full suite of power management solutions, ranging from skid-based modular DC solutions that allow for quick installation and expansion, to high- and low-voltage switchboards, UPS, transformers, busways, and digital monitoring systems. Schneider Electric has also partnered with SK Telecom to implement a “prefab modular system,” in which power, cooling, and IT infrastructure are pre-assembled as modules and then put together on-site.

Power module for data center solutions by Schneider Electric. Schneider Electric.

This trend indicates that the competition to build comprehensive DC solutions has already begun in the global market. Switzerland-based industrial automation and power technology company ABB is developing a power supply solution with Nvidia to support 800V power architectures. The two companies plan to jointly develop next-generation power design solutions, including large-scale power distribution, protective devices, DC power systems, and cooling solutions.

Industry experts believe that these changes could reshape the competitive landscape of the power industry. As comprehensive system design capabilities are required in addition to simple equipment supply, the competition among power companies is shifting from focusing on “products” to “solutions.”

An industry official emphasized, “Currently, all technically feasible solutions are being mobilized to supply power to data centers. The key competitive edge now lies in who can build power infrastructure faster and more efficiently. Power equipment companies capable of offering a variety of solutions—including transmission, distribution, and cooling—are expected to gain a significant advantage.”

This content was produced with the assistance of AI translation services.