ABB and Boston Consulting Group (BCG) have published a report arguing that direct current (DC) power distribution is likely to take a larger role alongside conventional alternating current (AC) systems as electricity demand from digital infrastructure, storage and electrification increases.
The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture examines how power systems could evolve as solar PV, batteries, electric vehicles, data centres and industrial equipment – all of which use DC internally – become a larger part of electricity demand.
The report does not envisage DC replacing AC transmission and regional distribution. Instead, it identifies hybrid architectures in which AC remains the main grid technology while DC distribution is used within facilities where it can reduce the number of conversions between generation, storage and loads.
AI data centres are identified as an immediate application. According to the report, increasing power density is putting pressure on conventional electrical architectures, while 800V DC distribution is emerging as an architecture for next-generation AI facilities. ABB and BCG argue that this could allow operators to make more effective use of limited grid connections while reducing conversion losses.
Other potential applications include automation-intensive manufacturing, commercial buildings and, over time, wider building infrastructure. In these settings, DC systems could simplify the integration of onsite solar and battery storage and reduce losses associated with repeated AC/DC conversion.
The report identifies standards and skills as greater barriers to deployment than technical feasibility. ABB and BCG argue that fragmented standards and limited DC-specific expertise need to be addressed if DC distribution is to expand beyond specialist applications.
ABB CEO Morten Wierod said wider adoption would require collaboration between industry, policymakers and technology providers, alongside common standards and workforce development.
ABB has developed DC technologies for more than two decades and cites applications including marine power systems, electric transport, microgrids and data centres. The company also says it holds more than 700 DC-related patents.
The report reflects a broader shift in power-system design towards architectures that accommodate generation, storage and loads with fewer conversion stages, particularly where grid capacity and energy efficiency are becoming increasingly important constraints.
