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TL;DR
Vantage reserved more than a gigawatt of factory capacity for Heron Power solid-state transformers that convert grid electricity directly to 800-volt DC. The move reflects a broader effort to handle dense AI racks and power fluctuations, but efficiency benefits cited by equipment makers remain vendor claims, and grid connections are still a major constraint.
Data center operator Vantage reserved more than a gigawatt of factory capacity for Heron Power solid-state transformers that convert grid electricity directly into 800-volt direct current, according to a report published October 27. The reservation, alongside a separate Microsoft-NiSource power agreement, highlights how AI data center expansion is driving investment in electrical infrastructure as well as computing hardware, a trend reflected in data centers’ growing global footprint.
The Vantage reservation was reported on October 21. Heron’s transformer is designed to supply 800-volt DC and includes energy storage to buffer fluctuations in data center demand. The source material does not specify how much equipment the reservation will produce, when it will be delivered, or the project sites where it will be used.
On October 16, Indiana utility NiSource signed a 20-year power deal with Microsoft that adds about 1,100 megawatts of generation and a 600-megawatt battery, according to the source. That agreement is a separate development; it does not establish that the power or battery will use Heron equipment or an 800-volt DC system.
The shift has a technical driver: AI racks require far more power than conventional server racks, intensifying the power bottleneck facing AI data centers. The International Energy Agency said AI server power density increased 11-fold from 2020 to 2025 and could quadruple again by 2027. Nvidia’s reference design proposes converting 13.8-kilovolt grid power to 800-volt DC near a facility’s perimeter, then distributing it to high-power racks. Nvidia has said the design could use 45% less copper than 415-volt AC distribution and improve end-to-end efficiency by up to 5% compared with current 54-volt systems. Those figures are vendor claims, not independently verified measurements; full-scale production with its Kyber systems is planned for 2027.
Infographic 01 · From grid to rack
AI racks near a megawatt are outgrowing the AC power chain.
Why the industry is moving to 800-volt direct current: fewer conversions, less copper, batteries on the main path. The numbers are vendor figures with different baselines, so they cannot be added up.
Today: many conversions
Typical AC chain from the grid to the rack
- Medium-voltage AC from the grid
- Transformer steps it down to low-voltage AC
- UPS converts to DC for the batteries and back to AC
- Distribution units feed the racks
- Every server power supply converts AC to DC again
Each stage loses energy, and almost all of the loss becomes heat the cooling system must remove.
800 V DC: convert once, outside
NVIDIA reference design, full-scale production planned with Kyber racks in 2027
- 13.8 kV AC from the grid
- Converted once to 800 V DC at the edge of the site, batteries on the same DC bus
- 800 V DC busway to the racks
- Stepped down inside the rack, for 1 MW racks and beyond
Bridge for existing halls: a “sidecar” cabinet next to the rack converts AC to 800 V DC, while the old chain stays in place.
Power lost per MW delivered to the rack
kW, SMA white-paper model vendor model
What NVIDIA says 800 V DC changes
NVIDIA’s engineering claims claim
Sources: NVIDIA technical blog (20 May 2025, updated 31 Jul 2025); SMA America, sponsored content in Utility Dive (26 Oct 2026). Rack density: IEA, Key Questions on Energy and AI (Apr 2026) (AI server power density 11× from 2020 to 2025, a further 4× by 2027).
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Power Delivery for Denser AI Racks
Moving to 800-volt DC is intended to address the physical limits of delivering very large amounts of electricity at low voltage. Higher voltage can carry more power through conductors of a given size, which may reduce the amount of copper and electrical equipment needed near a rack. Fewer conversion stages could also cut electrical losses, though the size of any real-world savings will depend on system design and operation.
The change matters to data center operators because electricity delivery can constrain how quickly new AI capacity is built. A one-megawatt rack creates different demands on cabling, power distribution and cooling than a rack designed for conventional workloads. Batteries may help absorb short-lived load swings and support the site during disturbances. For nearby customers, the effect is less direct: the cost and allocation of generation, grid upgrades and storage depend on utility arrangements and project contracts, not simply on the voltage used inside a data center.
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From AC Server Rooms to DC
Most data centers have historically received alternating current, stepped it down through transformers and power equipment, and converted it to low-voltage DC inside servers. Each conversion can waste energy as heat, which then adds to cooling requirements. An 800-volt design changes where some conversion occurs and how power is distributed; it does not remove the need for grid connections, transformers, protection systems or cooling.
The scale of demand is rising alongside rack density. The IEA estimates global data center electricity consumption at 485 terawatt-hours in 2025 and projects about 950 terawatt-hours by 2030, roughly 3% of global electricity demand. These are estimates and projections, not measurements of future use. The IEA has also said data center batteries could reach 20–25 gigawatts of installed capacity by 2030, potentially serving the grid if suitable incentives are in place.
Equipment and connections can take years to secure. The IEA puts transformer delivery times at two to three years and grid-connection waits at five to ten years in many locations. Berkeley Lab reported that US interconnection queues held about 2,300 gigawatts of proposed generation and storage at the end of 2024; only 13% of projects in earlier queues had been built. Those figures concern proposed projects and historical completion rates, not guaranteed future data center capacity.
“Up to 5% better end-to-end efficiency”
— Nvidia, in its 800-volt DC technical blog
Costs, Performance and Deployment
The Vantage reservation does not by itself confirm that a gigawatt of transformers has been manufactured, installed or connected to operating data centers. The source account does not provide delivery dates, contract terms, project locations or the reservation’s price. It is also unclear how much of the NiSource-Microsoft agreement’s generation and battery capacity is intended to serve data centers directly, or how costs will be distributed among the companies and other ratepayers.
Efficiency, copper savings and maintenance reductions cited for 800-volt systems come primarily from equipment makers. A Utility Dive article published October 26 described a model in which conversion losses fall from about 80 kilowatts to 20 kilowatts when delivering one megawatt, but the article was sponsored content by inverter maker SMA America. That modeled result is not an independent field test. Actual performance, retrofit costs, safety requirements and interoperability across suppliers remain open questions.
From Factory Reservations to Live Systems
The next test is whether reserved factory capacity becomes equipment delivered on schedule and deployed at operating sites. Nvidia’s stated plan calls for full-scale production of its 800-volt design with Kyber systems in 2027. Data center operators and utilities will also need to coordinate power supply, grid connections, storage and electrical standards; the source material does not provide a confirmed deployment timetable for Heron’s Vantage-related equipment.
As projects proceed, independently measured performance and published contract details will help clarify whether DC distribution reduces energy losses and infrastructure requirements enough to justify conversion and retrofit costs. Grid connection timelines and decisions about who pays for new generation and wires will remain central to how quickly AI capacity can be added and how its costs affect other electricity users.
Key Questions
What did Vantage reserve?
Vantage reserved more than one gigawatt of factory capacity for Heron Power solid-state transformers designed to convert grid power directly to 800-volt DC. The reported reservation is not confirmation that this amount of equipment has been built or installed.
Why are data centers considering 800-volt DC?
High-power AI racks need substantial electricity. Distributing power at higher voltage may reduce conductor requirements and allow some conversion stages to be moved or removed. Savings cited by manufacturers are estimates and require independent measurement in deployed systems.
How does the Microsoft-NiSource deal relate?
The separate 20-year agreement adds about 1,100 megawatts of generation and a 600-megawatt battery, according to the source. No information provided establishes that it uses Heron transformers or an 800-volt DC design.
Are the claimed efficiency gains confirmed?
No independent measurements are provided for the cited Nvidia efficiency and copper-savings figures. SMA’s reported loss comparison is based on a vendor-sponsored model, so actual results will depend on equipment, facility design and operating conditions.
What could slow adoption?
Transformer availability, lengthy grid-connection queues, retrofit costs and coordination among utilities, data center operators and equipment suppliers could delay projects. The source account does not give a confirmed timeline for broad deployment of the Vantage-related equipment.
Source: ThorstenMeyerAI.com
