German semiconductor manufacturer Infineon Technologies has announced a strategic collaboration with Nvidia to co-develop advanced power delivery systems for artificial intelligence (AI) data centers. The companies aim to shift away from traditional alternating current (AC) distribution and move toward high-voltage direct current (DC) power delivery, optimised for the increasingly demanding energy requirements of AI infrastructure.
Currently, data centers typically distribute power in AC and convert it to DC through individual power supply units within each server. This approach leads to conversion losses and inefficiencies, especially as data centers grow more power-intensive.
Centralised DC systems to power next-gen AI workloads
Under the partnership, Infineon and Nvidia will design centralised DC distribution systems that can supply power more efficiently to server racks. With each AI server rack projected to consume as much as 1 megawatt of power by the end of the decade, the companies are targeting substantial energy savings and improved thermal management.
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The new systems will help reduce power losses from conversion and distribution, streamlining the energy flow across AI server clusters. This is expected to enhance performance while also supporting sustainability goals.
Energy-efficient architecture aligned with AI scaling needs
Nvidia, a leader in GPU-accelerated computing and AI infrastructure, is looking to ensure that its next-generation AI workloads can scale with energy efficiency. The company said this initiative aligns with its broader strategy to combine high-performance AI compute with sustainable data center practices.
Infineon, known for its expertise in power semiconductors and industrial electronics, will leverage its technology to deliver high-voltage components capable of supporting this centralised power model.
As AI model training and inference workloads continue to grow in scale and complexity, this partnership positions both companies at the forefront of next-generation data center design—where energy management is as critical as compute performance.
(This news was first reported by Reuters.)
