Washington, DC — As artificial intelligence (AI) workloads escalate, a significant transformation is happening within the data center environment. The increasing power densities of these workloads are revealing limitations in traditional rack designs, prompting the need for an innovative approach to energy delivery.
During a keynote at Data Center World 2026, Jim Simonelli, the CTO of Schneider Electric’s Secure Power and Data Center division, highlighted the intersecting problems between power, cooling, and compute density. He pointed out that as operators cluster GPUs closer together to meet the demands of AI processes, an ongoing struggle emerges: power delivery systems and cooling infrastructure are competing for precious real estate within racks.
He emphasized that merely discussing AC versus DC power solutions overshadows a more pressing issue: the internal space constraints of the rack itself. Simonelli noted, "There’s too much stuff in that rack – copper, power supplies – things that are not driving compute. They’re just getting in the way."
The Conflict of Power and Cooling Hardware
The escalating demand for power can lead to complications, including the need for larger conductors to handle increased current loads, which complicates cable routing and adds bulk. Additionally, liquid-cooling components must also be scaled to fit the same physical footprint, resulting in what Simonelli describes as a stacking problem. This increased density of GPUs necessitates more power and cooling, but the supporting infrastructure often hampers the usable compute capacity.
A Move Towards 800 VDC Architectures
To counter these challenges, Simonelli argues for the adoption of 800 VDC (volts direct current) architectures. This approach seeks not only efficiency gains but also aims to maximize space within the rack. By increasing voltage, the current needed for the same power level decreases, allowing for the use of smaller cables and reducing the overall copper required in racks.
Simonelli warned, however, against viewing this transition as a straightforward shift from AC to DC. "It’s not just around a single architecture. It’s more complex than that," he stated. Instead, he advocates for a comprehensive redesign of how power is delivered, converted, and managed in data centers.
Sidecar Designs as a Short-Term Solution
In the near term, solutions like sidecar designs—where power conversion equipment is located outside the compute rack—are emerging. This allows for simpler, smaller cabling to service the compute racks without compromising their space. Simonelli suggests that while this approach may not be the end goal, it can provide necessary flexibility as power demands increase.
Looking ahead, he anticipates that more centralized power conversions may become necessary, particularly for larger deployments where the challenges of high-density architecture demand innovative solutions.
The Future of Data Center Design
Simonelli predicts a future where no single design transcends others; rather, a diversified portfolio of architectures will arise to meet varied workloads and site conditions. Smaller installations might maintain localized power conversion, while larger setups could implement centralized higher-voltage strategies.
Ultimately, the scalability of these power configurations will determine their success. "It’s not always the best technology that wins – it’s the one that can scale," he concluded. For operating environments, the ability to consistently deploy and manage new designs will be critical as the industry adapts to evolving demands.
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