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TL;DR
Vantage reserved more than 1 gigawatt of factory capacity for Heron Power solid-state transformers that convert grid power to 800-volt DC, while a separate NiSource-Microsoft agreement includes new generation and a 600-megawatt battery. The developments reflect growing interest in changing how data centers handle power, but claimed efficiency gains remain vendor figures and grid connections are still a major constraint.
Data center operator Vantage reserved more than one gigawatt of factory capacity for Heron Power solid-state transformers that convert grid electricity directly into 800-volt direct current, a sign that power-system design is becoming a larger part of AI infrastructure planning. The reservation, reported October 21, comes as a separate Microsoft-NiSource agreement adds planned generation and battery storage, while operators face long waits for grid connections and equipment.
The Vantage reservation is for manufacturing capacity, not confirmation that more than a gigawatt of equipment has been installed or is already supplying data centers. Heron Power’s transformer is designed to convert incoming grid power to 800-volt DC and includes energy storage. The source material does not give the reservation’s delivery schedule, price or specific project locations.
On October 16, Indiana utility NiSource signed a 20-year power agreement with Microsoft that adds about 1,100 megawatts of generation and a 600-megawatt battery, according to the source report. The agreement illustrates another approach to meeting data center demand: securing long-term power and storage alongside the computing facilities that need it.
The technical case for 800-volt DC is partly about reducing the number of power conversions and limiting the amount of heavy copper needed to carry electricity at high loads in data center servers. NVIDIA has proposed converting 13.8-kilovolt grid power to 800-volt DC near a facility’s perimeter for future one-megawatt racks. Its claims of 45% less copper and up to 5% better end-to-end efficiency are company estimates, not independent measurements. NVIDIA says full-scale production with its Kyber systems is planned for 2027.
Infographic 01 · From grid to rack
AI racks near a megawatt are outgrowing the AC power chain.
Why the industry is moving to 800-volt direct current: fewer conversions, less copper, batteries on the main path. The numbers are vendor figures with different baselines, so they cannot be added up.
Today: many conversions
Typical AC chain from the grid to the rack
- Medium-voltage AC from the grid
- Transformer steps it down to low-voltage AC
- UPS converts to DC for the batteries and back to AC
- Distribution units feed the racks
- Every server power supply converts AC to DC again
Each stage loses energy, and almost all of the loss becomes heat the cooling system must remove.
800 V DC: convert once, outside
NVIDIA reference design, full-scale production planned with Kyber racks in 2027
- 13.8 kV AC from the grid
- Converted once to 800 V DC at the edge of the site, batteries on the same DC bus
- 800 V DC busway to the racks
- Stepped down inside the rack, for 1 MW racks and beyond
Bridge for existing halls: a “sidecar” cabinet next to the rack converts AC to 800 V DC, while the old chain stays in place.
Power lost per MW delivered to the rack
kW, SMA white-paper model vendor model
What NVIDIA says 800 V DC changes
NVIDIA’s engineering claims claim
Sources: NVIDIA technical blog (20 May 2025, updated 31 Jul 2025); SMA America, sponsored content in Utility Dive (26 Oct 2026). Rack density: IEA, Key Questions on Energy and AI (Apr 2026) (AI server power density 11× from 2020 to 2025, a further 4× by 2027).
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Power Design Moves Beyond the Server
AI data centers are raising the stakes for electrical infrastructure because their power needs are concentrated in dense racks and can change quickly. The International Energy Agency reported that AI server power density increased 11-fold from 2020 to 2025 and is projected to quadruple again by 2027. It says one rack could then draw as much power at peak as 65 households. That estimate describes peak demand, not a rack’s typical continuous use.
Operators are considering DC distribution because data center equipment ultimately uses DC internally, while facilities generally bring in alternating current and convert it through several stages. Fewer conversions could reduce energy losses and heat, while higher voltage can carry more power through conductors of a given size. Those potential gains matter as operators try to fit more computing into limited space and manage cooling and electrical costs.
The effects reach beyond data center operators. New generation, batteries, substations and transmission infrastructure can affect utility planning and electricity costs. The source material says US households averaged 18.21 cents per kilowatt-hour in 2026, compared with 17.30 cents in 2025, and reports wholesale prices in the PJM region were up 41%. Those figures do not establish that data centers caused the increases; the cost of new infrastructure and how it is allocated vary by project and utility.
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From AC Conversion to 800-Volt Plans
Traditional data centers receive alternating current, then use transformers, uninterruptible power supplies and distribution equipment to step down and convert electricity before servers convert it again for their components. Each conversion can lose energy, much of which becomes heat that cooling systems must remove. This design worked at rack loads of tens of kilowatts, but the source report says it becomes harder to scale as AI racks approach a megawatt.
NVIDIA’s proposed architecture would make a major conversion from 13.8-kilovolt AC to 800-volt DC near the facility perimeter, then distribute DC closer to high-power racks. The company says a one-megawatt rack supplied at today’s 54 volts could require up to 200 kilograms of copper busbar. Its projected savings compare its proposed 800-volt approach with specified existing systems; they should be treated as vendor figures until tested in operating facilities.
A near-term option described in an October 26 Utility Dive article is a “sidecar” conversion cabinet beside a rack. It could allow 800-volt racks to work in halls designed around AC infrastructure rather than requiring an entire facility to be rebuilt. The article was sponsored by inverter maker SMA America. Its white-paper model estimates losses of about 80 kilowatts when delivering one megawatt through a traditional AC chain, versus about 20 kilowatts in an 800-volt DC arrangement. Those are modeled results presented by a vendor, not independent field measurements.
Storage is part of the same discussion because AI workloads can produce rapid changes in electricity demand. The IEA projects 20 to 25 gigawatts of batteries could be installed in data centers by 2030, and says they could support the grid if incentives are appropriate. Batteries supply DC, which can fit more directly into a DC power path, but the source material does not establish how widely that configuration will be adopted.
“leaving no room for compute”
— NVIDIA, in its 800 VDC technical blog
Costs, Delivery and Measured Performance
The Vantage reservation does not, on the information provided, confirm an installation date, project site, purchase price or how much equipment will ultimately be delivered. It also remains unclear how quickly 800-volt systems will move from designs and factory planning into routine commercial use. NVIDIA’s production target is 2027, but that is a company plan, not evidence that deployments have begun at scale.
Efficiency, copper and maintenance savings cited by NVIDIA, and conversion-loss estimates in SMA’s sponsored material, have not been established here through independent operating data. Results could depend on system design, workload, cooling, facility layout and the equipment being replaced. The source material also does not provide the terms of the Vantage-Heron reservation or explain how the NiSource-Microsoft project’s costs will be divided among the parties.
Grid access remains a separate constraint. The source report, citing the IEA, says transformers can take two to three years to arrive and grid connections can take five to ten years in many locations. Berkeley Lab figures cited in the report put US grid interconnection requests at about 2,300 gigawatts at the end of 2024, while only 13% of earlier requests were built. These figures describe a broad queue, not the status of any specific project in the two agreements.
Projects Must Clear Grid and Factory Queues
The next evidence will come from whether the reserved transformer capacity turns into delivered equipment and operating installations, and whether the planned systems achieve their stated performance. Vantage’s order details, Heron Power’s manufacturing timeline and the eventual deployment schedule were not included in the source material. NVIDIA’s stated target is full-scale production with Kyber systems in 2027.
For the NiSource-Microsoft agreement, the source confirms a 20-year term and the planned addition of generation and a 600-megawatt battery, but does not detail construction milestones, the precise allocation of costs or when the resources will begin serving the project. Those details will help clarify how the deal addresses local power needs.
More broadly, data center power plans will depend on utility approvals, equipment availability and new connections to the grid. The agreements show that companies are arranging power and infrastructure earlier in project planning; they do not yet show how quickly 800-volt DC will become standard or how its costs will affect electricity customers.
Key Questions
What is 800-volt DC in a data center?
It is a proposed way to distribute direct current at 800 volts closer to high-power servers. The idea is to reduce conversion stages and carry large amounts of power with less conductor material than lower-voltage designs. The expected benefits depend on the system and have not all been independently measured.
What did Vantage reserve?
Vantage reserved more than one gigawatt of factory capacity for Heron Power solid-state transformers, according to the source report. That describes reserved manufacturing capacity; it does not confirm that the equipment has been installed or is already delivering power.
Why are batteries part of the discussion?
AI workloads can create rapid changes in electricity demand. Batteries may help buffer those swings or support power during disturbances. The IEA projects 20 to 25 gigawatts of data center batteries by 2030, but the source does not say that all planned systems will use the same design or provide grid services.
Are the claimed efficiency savings independently verified?
Not in the material provided. NVIDIA’s copper and efficiency figures are vendor claims, and SMA America’s conversion-loss comparison comes from a vendor white-paper model in sponsored content. Independent operating results were not included.
Will 800-volt DC lower household electricity bills?
The source does not establish that. Higher efficiency could reduce some facility losses, but customer bills also depend on generation, grid upgrades, utility rules and how project costs are allocated. The reported household and wholesale price figures do not show that data centers alone caused price changes.
Source: ThorstenMeyerAI.com
