Lee Samaha, The Motley Fool
5 min read
In This Article:
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Nvidia is collaborating with key partners in preparation for the next generation of data centers.
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Semiconductor maker Navitas is soaring on the back of its relationship with Nvidia.
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Data center equipment maker Vertiv is also partnering with Nvidia, which should boost its growth.
The explosion in artificial intelligence (AI) demand is creating significant demand for data centers and the equipment that powers them. The leading AI computing platform provider, Nvidia (NASDAQ: NVDA), is developing the next generation of data center architecture. However, it's not doing it alone. Two of its key partners, Navitas Semiconductor (NASDAQ: NVTS) and Vertiv (NYSE: VRT), are set to play a significant role. Here's the lowdown.
Nvidia recently discussed the next-generation 800-volt (V) high-voltage direct current (HVDC) in a blog post and cited several key partners it is collaborating with to accelerate adoption.
The change, from 54V DC data centers to 800V DC, is a game changer and is likely to result in the replacement of traditional 54V DC data centers used for AI and high-performance computing. Nvidia expects these new data centers to launch in 2027, so its partners must have solutions ready in time.
In a traditional 54V DC data center, 13.8kV alternating current (AC) power (a voltage typically used to distribute power to neighborhoods or industrial facilities) enters the data center. It is then stepped down to a lower AC voltage. After that, the lower-voltage power is routed to IT racks, which contain power distribution units that convert it to 54V DC. From there, it's fed into another converter at the graphics processing units (GPUs) level, which converts it into an even lower DC voltage used to power the GPUs.
The new 800V HVDC data centers help simplify the process by converting the 13.8kV AC power into 800V DC at the data center perimeter and then straight to the IT rack, where it's transformed into the lower voltages necessary to run GPUs. Nvidia believes that the new data centers will:
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Improve efficiency by 5%
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Significantly reduce copper demand
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Reduce maintenance costs by 70%
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Lower cooling requirements
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Cut the total cost of ownership by 30%
Navitas had just $83.3 million in sales in 2024. The announcement of its collaboration with Nvidia on 800V HVDC data center architecture sent the stock into orbit -- up over 100% so far this year.
The gallium nitride (GaN) and silicon carbide (SiC) semiconductor company offers power conversion solutions that cover the entire power process in an 800V HVDC data center, from the initial conversion at the perimeter to the conversion from 800V DC to lower voltage at the IT rack.
