As artificial intelligence continues to transform industries worldwide, the power requirements for AI data centers are skyrocketing, creating unprecedented energy challenges for the tech sector.
On May 20, 2025, German semiconductor leader Infineon Technologies announced a groundbreaking partnership with Nvidia to revolutionize power delivery for AI computing infrastructure. The collaboration focuses on developing next-generation power systems based on an 800V high-voltage direct current (HVDC) architecture with centralized power generation.
This innovative approach represents a significant departure from traditional data center power distribution methods. Current systems typically distribute high-voltage power as alternating current, which is then converted to direct current by individual power supply units inside servers. The new HVDC architecture streamlines this process by minimizing energy conversions and allowing power conversion directly at the AI chip within the server board.
"The combination of Infineon's application and system know-how in powering AI from grid to core, combined with Nvidia's world-leading expertise in accelerated computing, paves the way for a new standard for power architecture in AI data centers," said Adam White, Division President Power & Sensor Systems at Infineon.
The timing is critical, as data center electricity consumption is projected to more than double by 2030, with AI workloads being the primary driver. Industry analysts estimate that AI data centers will require power outputs exceeding one megawatt per IT rack before the end of the decade, compared to the kilowatt-scale power distribution systems currently in use.
Infineon's expertise in power conversion solutions using silicon, silicon carbide, and gallium nitride semiconductor materials positions the company to accelerate the transition to full-scale HVDC architecture. The partnership aims to establish new power delivery standards that will enhance both reliability and efficiency for the next generation of AI infrastructure.