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800VDC shift in AI data centres may create USD 5 billion market for solid-state transformers: Goldman Sachs

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New Delhi | October 22, 2026 15:41:16 IST
The shift to 800-volt direct current (800VDC) power systems in artificial intelligence (AI) data centres could create a market opportunity of up to USD 5 billion for solid-state transformers by 2030, as rising computing demand increases the need for efficient power infrastructure, according to a Goldman Sachs research report.

The report estimates that around 10 gigawatts (GW) of new data centre capacity using 800V GPUs could be added in 2030. This would account for around 6 per cent of the total installed data centre capacity and 60 per cent of new capacity additions that year.

Goldman Sachs said the growing power needs of AI systems are pushing electricity requirements from tens of kilowatts per rack to more than one megawatt. This is putting pressure on conventional power distribution systems.

The adoption of 800VDC technology could improve power efficiency by up to 5 per cent and reduce copper requirements by as much as 45 per cent. It could also help data centres manage sudden changes in electricity demand.

Commercial adoption is expected to begin with power sidecars in early 2027. These systems allow existing alternating current (AC) infrastructure to support high-voltage direct current (DC) systems. Solid-state transformers and fully integrated 800VDC architectures are expected to follow in late 2027 and early 2028.

The transition could also create opportunities in circuit protection, energy storage, power conversion and cooling systems. Goldman Sachs estimates that the market for solid-state circuit breakers alone could reach up to USD 8 billion.

Liquid cooling is also emerging as an important requirement for AI data centres, as high-density computing systems generate more heat and require efficient cooling solutions.

The report further highlighted potential opportunities for cable manufacturers. Although the new power architecture could reduce overall copper requirements, demand for specialised, high-value cables and high-temperature superconducting technology could support profit margins. Goldman Sachs identified Nexans as a potential beneficiary.

However, the report cautioned that the market remains at an early stage. Adoption timelines and market-size estimates could change as the technology moves through pilot programmes and wider commercial deployment. (ANI)

 
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