Key insights
- Nvidia is engaging with South Korean power equipment manufacturers to develop higher-voltage data center infrastructure (800V DC). This initiative aims to improve power efficiency and reduce costs. While potentially bullish for Nvidia's long-term growth and efficiency, the compatibility with existing infrastructure remains a key challenge. The move highlights Nvidia's commitment to optimizing its AI infrastructure and could influence related sectors.
Investing.com-- NVIDIA Corporation (NASDAQ:NVDA) approached major South Korean power equipment manufacturers over designing higher-voltage data center infrastructure, Korean outlet The Asia Business Daily reported on Wednesday.
Nvidia requested that power equipment manufacturers design data center infrastructure based on 800 volt direct current systems, the Asia Business Daily reported, citing industry sources.
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The Korean talks are part of a broader global push by Nvidia to build more power-efficient data center infrastructure. Rather than converting grid power through multiple stages before it reaches processors, the company has proposed using a single DC conversion to distribute high voltage through a facility.
The company said in a blog post that the shift to 800 V reduces current, copper use, and cable bulk, as compared to the current industry standard 54 V data center systems.
The key issue in Nvidia’s plans is compatibility with existing infrastructure.
It was not immediately clear which companies Nvidia had engaged in talks with. But potential candidates include Hyundai Electric & Energy Systems Co Ltd (KS:267260), LS Electric (KS:010120), and Hyosung Heavy Industries Corp (KS:298040), which are actively involved in building new energy infrastructure.
South Korea is already a key part of Nvidia’s supply chain, with the company depending heavily on memory chip supplies from Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660).