ABB and Boston Consulting Group (BCG) have released a report examining the potential role of hybrid alternating current (AC) and direct current (DC) power systems as electrical infrastructure evolves.

The report, The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture, argues that DC technology is moving into a larger role in industrial, commercial and digital infrastructure. It also says decisions made by business leaders and policymakers over the next two to three years could influence the pace and direction of that transition.

Rather than replacing AC systems, the report describes a future power distribution architecture that combines AC and DC. AC is expected to remain the backbone of most transmission and regional distribution networks, while DC could play a larger role within facilities where many energy sources and loads already operate on direct current.

Solar photovoltaic systems, batteries, electric vehicles, AI data centers and industrial automation systems are among the technologies identified as inherently DC-based. As these technologies expand, the report says reducing the number of power conversions between generation, storage and consumption could improve efficiency, increase usable capacity from existing grid connections and simplify integration.

Data centers among key drivers

AI data centers are identified as one of the most immediate drivers of DC adoption. The report says increasing power density requirements from AI workloads are pushing conventional electrical architectures toward practical limits.

According to the report, 800-VDC distribution is emerging as an architecture for next-generation AI infrastructure. The approach could allow operators to maximize computing capacity within constrained grid connections while improving energy efficiency.

The report also identifies potential applications beyond data centers, including automation-intensive manufacturing facilities and commercial buildings. DC systems or subsystems could provide lower conversion losses, improved integration of onsite renewable generation and storage, and greater operational flexibility, according to the report.

The report also addresses what ABB and BCG describe as long-standing misconceptions about DC adoption. It concludes that concerns about scale, safety and economics increasingly reflect outdated assumptions about current technologies. Instead, the report identifies fragmented standards and a shortage of DC-specific skills as key challenges to broader deployment.

“AC and DC each have important roles to play, and together they can help build a more efficient, resilient and future-ready electrical system,” said Morten Wierod, CEO of ABB.

ABB said it has more than 700 DC-related patents and has developed DC applications for electric transport, microgrids and data centers. The company also said it is working with industry partners on DC distribution for low-carbon aluminum production and green hydrogen.

The full report is available from ABB.