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ABB and BCG report says DC technology set to become core of future power systems

ABB and Boston Consulting Group outline how direct‑current solutions will complement AC grids, driven by AI data centres, EVs and renewable integration, and call for standards and skills to speed adoption.

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Helena Vásquez · Business Desk · 19 Sept 2026 · 05:55 · 2 min read
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ABB and BCG report says DC technology set to become core of future power systems

ZURICH, Sept 9 (PRNewswire) – ABB released a joint study with Boston Consulting Group titled The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture. The paper argues that direct current (DC) technology is moving from niche applications to a central role in industrial, commercial and digital infrastructure.

The authors stress that the future grid will not replace alternating current (AC) but will combine AC for transmission and regional distribution with DC for facilities where generation, storage and loads already operate on DC. Rapid growth in solar photovoltaics, battery storage, electric vehicles, AI‑driven data centres and automation systems creates a strong incentive to reduce conversion steps, improve efficiency and increase usable capacity of existing grid connections.

AI data centres are highlighted as the most immediate catalyst. The report finds that 800‑volt DC distribution is emerging as the preferred architecture for next‑generation AI workloads, allowing operators to maximise compute output within constrained grid limits while lowering energy consumption.

Beyond data centres, the study identifies opportunities for DC in automation‑intensive manufacturing sites, commercial buildings and, over the longer term, residential premises. Benefits include lower conversion losses, smoother integration of on‑site renewables and storage, and greater operational flexibility.

ABB CEO Morten Wierod said the company’s 25‑year history in DC solutions positions it to help customers cut conversion losses, boost power‑transfer efficiency and reduce electricity demand. He added that broader adoption will require common technologies, harmonised standards and a workforce skilled in DC implementation.

The report also dispels long‑standing misconceptions about DC scale, safety and economics, attributing slow uptake mainly to fragmented standards and a shortage of DC‑specific expertise. ABB cites its own milestones – a DC‑based vessel power system that delivered up to 27 % fuel savings and the launch of the industry’s first solid‑state circuit breaker in 2022 – and notes it holds more than 700 DC‑related patents.

ABB is now extending DC distribution to electric transport, micro‑grids and data centres, and is exploring applications in low‑carbon aluminium production and green‑hydrogen generation. The full report is available on ABB’s website.

ABB, a global leader in electrification and automation, employs roughly 110,000 people and is listed on the SIX Swiss Exchange and Nasdaq Stockholm.

This article was produced with AI assistance and edited by a Finance Review Daily journalist.
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Written by
Helena Vásquez
Business Desk

Helena covers corporate news for listed and private companies across Europe, from strategy shifts to leadership changes, with an eye for what a story signals about the broader market.

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