ABB has released a new report developed with Boston Consulting Group examining the growing role of direct current technologies in the future of power distribution across industrial, commercial and digital infrastructure. Titled The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture, the report says future power systems are likely to combine alternating current and direct current technologies rather than rely exclusively on either system.
According to the report, AC will continue to serve as the backbone of most transmission and regional distribution networks. However, DC is expected to play an increasingly important role within facilities where major energy sources and electrical loads already operate on direct current.
Technologies including solar photovoltaic systems, batteries, electric vehicles, AI data centres and many industrial automation systems are inherently DC-based. As these technologies expand, reducing the number of power conversion stages between generation, storage and consumption could improve energy efficiency, increase the usable capacity of existing grid connections and simplify system integration.
The report identifies AI data centres as one of the most immediate drivers of DC adoption. Increasing AI workloads are placing greater demands on electrical infrastructure and power density, creating challenges for conventional power architectures. ABB and BCG said 800 VDC distribution is emerging as an important architecture for next-generation AI infrastructure, helping operators maximise computing capacity within constrained grid connections while improving energy efficiency.
The potential applications of DC systems also extend beyond data centres. Automation-intensive manufacturing facilities, commercial buildings and other infrastructure could benefit from lower conversion losses, improved integration of onsite renewable energy and storage, and greater operational flexibility.
Morten Wierod, Chief Executive Officer of ABB, said, “In a world that will require more power while operating within the constraints of existing infrastructure, enabling broader adoption of DC systems will require stronger collaboration among business leaders, policymakers and technology stakeholders.” He said AC and DC technologies each have important roles in developing a more efficient, resilient and future-ready electrical system.
The report also addresses concerns surrounding the scale, safety and economics of DC technologies, suggesting that many of these concerns are based on assumptions that no longer reflect current technological capabilities. Instead, fragmented standards and a shortage of DC-specific skills are identified as key challenges for wider deployment.
ABB has worked on DC technologies for more than 25 years and holds more than 700 DC-related patents. The company has applied DC solutions across electric transport, microgrids and data centres and is also exploring applications in low-carbon aluminium production and green hydrogen.
ABB said broader adoption will require common technologies, harmonised standards and a skilled workforce capable of supporting implementation at scale. The report highlights how hybrid AC/DC systems could play an increasing role as industries manage rising electricity demand while working within the limits of existing power infrastructure.
