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Why the Data Center Is Going Back to Direct Current

AI servers run on DC, yet data centers still convert AC several times. What that costs in energy and space, and how Merge4 runs DC from source to rack.
Strands of orange and blue light crossing in the dark, representing direct current flowing through an AI data center
In this article
The short history
  • 1882: Edison opens Pearl Street on DC
  • AC wins the grid
  • Electronics, solar and AI bring DC back
Inside the data center, DC sources now feed DC loads.
In short
  • AI servers and their backup batteries run on direct current, but data centers receive alternating current from the grid, so power is converted several times before it does useful work.
  • Each conversion loses energy as heat and takes up space in the rack.
  • As solar, battery storage and high-voltage DC designs spread, DC sources increasingly feed DC loads, which makes the detour through AC harder to justify.
  • Merge4 builds solid-state DC power distribution for this shift, with protection that acts in microseconds.

Walk into any AI data center and you will find the same mismatch. The servers run on direct current. The power arriving from the utility is alternating current. Between the two, electricity changes form several times before it does any useful work, and each change burns off energy as heat and takes up room in the rack. With operators racing to add capacity, that overhead adds up quickly.

The mismatch is a leftover from a fight more than a century old.

A Choice From the 1880s

In 1882 Thomas Edison opened the first commercial power plant in the U.S. on Pearl Street in Manhattan, and it ran on direct current. Think of DC as water moving one way through a hose. George Westinghouse bet on alternating current, which surges back and forth like a tide. AC paired well with transformers, which could send power over long distances, and that made a centralized grid practical. The rivalry turned nasty, with Edison staging the electrocution of an elephant to scare people off AC. Westinghouse won, and the grid has run on AC since.

DC Kept Working in the Background

Direct current never disappeared. It ran railways, telegraphs and the early phone network. In the 1970s, people living off the grid lit their cabins with 12-volt bulbs and car batteries. Then electronics arrived. Phones, laptops, TVs and LED lights all need DC, so every one of them converts power through the little adapter plugged into the wall. Across billions of devices, those small losses never stop.

Solar made the case stronger. A solar panel produces DC and a battery stores it, yet the grid converts that power to AC to move it, then back to DC to use it.

AI Tips the Scale

Electricity demand is climbing for the first time in decades, and the load behind it runs on DC from end to end. AI servers use it and the batteries that back them up store it. Hyperscalers chasing speed to power are adding solar and storage, and with DC sources feeding DC loads, a detour through AC makes less and less sense. Nvidia is pushing the industry toward high-voltage DC, and suppliers old and new are designing for it.

Where Merge4 Fits

Merge4 builds solid-state DC power distribution for this shift. Transistors replace the mechanical levers that have protected circuits for a century, so protection acts in microseconds and nothing arcs. AC will keep running the wider grid. Inside the data center, the case for Edison's current has never been stronger.

See how the DC Intelligent Power Row runs one DC power train, from power source to server rack.
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With DC sources feeding DC loads, a detour through AC makes less and less sense.
Anna Demeo, Ph.D
Anna Demeo, Ph.D
CEO

Anna is a serial entrepreneur, CEO, and strategist working at the intersection of AI, energy, and critical infrastructure. She holds a Ph.D in smart grid technology and writes for Forbes on AI, electrification, and the modernization of energy systems.

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