All Access

Climate Deals

Standard

Climate Deals Thought Bubble

Thought Bubble

Climate Deals Alerts

Alert

mustard

BFD Expert Voices - Climate Deals

BFD Expert Voices

topics

politics-policy

epstein-files

donald-trump

2026-midterm-elections

immigration

behind-the-curtain

race-and-equity

technology

privacy-tech-regulation

automation-and-ai

tiktok-news

big-tech

social-media

cybersecurity

economy

social-security

inflation

tariffs

federal-reserve

jobs

transportation

business

stock-market-news

retail-news

crypto

media

elon-musk

dealmaking

health

rfk-jr

drug-prices

axios-explains-abortion

public-health

world

israel

axios-explains-ukraine

iran

russia

china

energy-climate

nuclear-energy

climate-energy-policy

climate-change

extreme-weather

alternative-energy

electric-vehicles

science

emerging-tech

biomedicine

newsletters

pittsburgh

atlanta

san-diego

charlotte

boulder

washington-dc

kansas-city

dallas

denver

detroit

des-moines

austin

boston

chicago

cleveland

columbus

houston

indianapolis

miami

nashville

new-orleans

nw-arkansas

philadelphia

phoenix

portland

richmond

salt-lake-city

san-antonio

san-francisco

seattle

tampa-bay

twin-cities

raleigh

huntsville

colorado-springs

axios-local

axios-pro

axios-live

the-axios-show

A data center power transition, led by Nvidia and hyperscalers, is quietly providing one of the biggest opportunities for next-gen tech in 2026.

Why it matters: There's been far less focus on how data centers plan to use tech to move and manage the electricity.

Context: A lot of attention has been on how data centers are demanding ever more power generation, from gas to solar and even nuclear.

But tens of billions of dollars will need to be spent on data center power infrastructure in the coming years.

The AI power transition is similar in scale to previous computing transitions, like to cloud, mobile and desktop, that unleashed opportunities for infrastructure companies.

How it works: Today, most data center server racks rely on lower-voltage (48–54 volt) power distribution, and mostly alternating current, or AC.

But as AI chips and racks demand more power — going from kilowatt-scale racks to megawatt-scale racks — the traditional design, power and cooling gear starts to become inefficient, oversized and unsustainable. Copper, which moves power, would be particularly constrained.

Nvidia and hyperscalers, through the Open Compute Project, are now designing much higher-voltage (400–800 volt) data centers and gear, and they're using direct current, or DC, to make data centers more efficient and power dense, while using less copper.

What they're saying: "Compute has gone up in density probably 10 times. If the power supply system doesn't also improve its density, data centers will be like one small building with a huge power system around it," says Brian Dow, CEO and co-founder of solid state transformer startup Amperesand.

"If you ask me what I do, and I never say this, I feel like I'm investing for reducing power," says Young Sohn, co-founder of Walden Catalyst and a longtime chip executive.

Zoom in: The voltage jump and DC emphasis requires new technologies, providing an unprecedented opportunity for startups and investors.

Denser, more-efficient power electronics like solid state transformers, better cooling systems like liquid cooling, more-efficient backup storage like specialty batteries, and increased use of optical networking are already seeing a boost.

TDK Ventures, the VC arm of Japanese electronics giant TDK, has at least eight of its staff focused on computing and energy innovations, and it's backed over a dozen startups in the space, including Amperesand.

"It's an AI infrastructure super-cycle that will create massive TAMs for companies in power electronics, cooling, storage and material science," says TDK Ventures investment director Ankur Saxena.

Behind the scenes: Nvidia and the hyperscalers are eager to collaborate with entrepreneurs.

Nvidia, including CEO Jensen Huang, hosted an AI Factory Summit earlier this month, bringing together dozens of executives from power tech companies to collaborate around its planned 800-volt DC architecture, according to a source who attended.

Reality check: A high-voltage data center environment, which could be dangerous to humans, will have its challenges.

"If you can't send humans in there, how do you service racks?" points out Saxena, who sees opportunities via tech like fast fault detection and high-voltage servicing.

What's next: Gear-makers will be heads down in 2026 developing and certifying products for Nvidia's first next-gen data center power architecture in 2027.

AI's power transition to unlock next-gen tech

There's been far less focus on how data centers plan to use tech to move and manage the electricity.

Illustration of a data center server in the shape of an upward arrow.

A data center power transition, led by Nvidia and hyperscalers, is quietly providing one of the biggest opportunities for next-gen tech in 2026.Why it matters: There&#x27;s been far less focus on how data centers plan to use tech to move and manage the electricity.

AI's power transition to unlock next-gen tech

What to read next