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TL;DR
Vantage reserved more than 1 gigawatt of factory capacity for Heron Power solid-state transformers designed to convert grid electricity to 800-volt DC. The development reflects a broader shift toward higher-voltage distribution and batteries as AI data centers strain existing power designs, though performance and savings figures remain largely vendor claims.
Data center operator Vantage reserved more than 1 gigawatt of factory capacity for Heron Power solid-state transformers on October 21, a sign that data center infrastructure is shifting to address the power demands of AI. The equipment is designed to convert grid electricity directly into 800-volt direct current, while a separate Microsoft–NiSource agreement adds new generation and battery storage to serve a large load.
Heron Power’s transformer is designed to connect grid power to an 800-volt DC distribution system and includes storage to buffer fluctuations in demand, according to the source report. Vantage reserved factory capacity; that is not the same as confirmation that the equipment has been installed or that the full capacity is already operating. Details of the order, including delivery timing and deployment sites, have not been provided in the supplied material.
On October 16, Indiana utility NiSource signed a 20-year power agreement with Microsoft that adds about 1,100 megawatts of generation and a 600-megawatt battery, according to the report. The agreement is separate from Vantage’s reservation and does not, on the information available, establish that NiSource or Microsoft will use Heron’s transformer or an 800-volt DC design.
The engineering rationale is rising rack demand. The International Energy Agency says AI-server power density increased 11-fold from 2020 to 2025 and is projected to quadruple again by 2027. NVIDIA’s reference design calls for converting 13.8-kilovolt grid power to 800-volt DC for racks designed to draw up to 1 megawatt, with full-scale production planned alongside Kyber systems in 2027. NVIDIA’s projected reductions in copper use and energy losses are company claims, not independent measurements.
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 Becomes an AI Constraint
For data center developers, access to electricity and equipment to deliver it can now shape project schedules as much as access to computing hardware. The IEA says transformers can take two to three years to arrive and grid connections can take five to ten years in many locations. Moving to higher-voltage DC may reduce some conversion stages and the amount of copper needed, but it does not by itself create new generation or speed up a utility connection.
Batteries could help sites manage short-term fluctuations in computing demand and respond to grid disruptions. The IEA estimates that data centers could have 20–25 gigawatts of battery capacity by 2030, and says storage could support the grid if incentives are appropriate. Whether those systems lower electricity costs for other customers depends on how projects are funded, how utilities recover infrastructure costs and how storage is operated.
That distinction matters for households and businesses facing higher bills. The source reports a U.S. average residential rate of 18.21 cents per kilowatt-hour in 2026, compared with 17.30 cents in 2025, and a 41% rise in wholesale prices in the PJM region. Those figures do not show that data centers caused the increases; electricity prices vary by region and depend on multiple factors.
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From AC Conversion to 800-Volt DC
Traditional data centers receive alternating current, then pass it through transformers, uninterruptible power supplies and distribution equipment before converting it to low-voltage DC for servers. Each conversion can lose energy, which also adds heat that cooling systems must remove. Designs built around racks drawing 10 or 20 kilowatts face different constraints from facilities planned for racks approaching a megawatt.
NVIDIA’s technical material says a 1-megawatt rack supplied at 54 volts could require up to 200 kilograms of copper busbar. The company says its 800-volt approach can move more power through conductors of the same size and reduce copper use by 45% compared with 415-volt AC distribution. It also projects up to 5% better end-to-end efficiency than current 54-volt systems. These estimates are tied to NVIDIA’s design and have not been presented here as independently verified results.
A Utility Dive article published October 26 describes a possible intermediate step: a “sidecar” conversion cabinet installed beside racks, allowing higher-voltage equipment to operate in existing AC halls. The article was sponsored by inverter maker SMA America, and its modeled losses—about 80 kilowatts for a traditional 1-megawatt AC chain versus about 20 kilowatts in an 800-volt DC arrangement—are a vendor’s model, not a reported field measurement.
“The company says its design can deliver “up to 5%” better end-to-end efficiency than current 54-volt systems.”
— NVIDIA, in its 800 VDC technical material
Deployment and Grid Costs Remain Open
The reported Vantage reservation does not specify when equipment will be delivered, where it will be installed or how much of the reserved capacity will become operational. Nor does the source establish that the NiSource–Microsoft generation and battery agreement is directly connected to Vantage’s plans. The terms determining who pays for associated grid upgrades and how costs may affect other ratepayers are not detailed.
Several efficiency, copper and maintenance figures in the source come from NVIDIA or SMA and should be treated as design estimates or vendor claims. Independent performance data from large-scale 800-volt data center deployments is not provided. It is also unclear how quickly operators can retrofit existing facilities, what the full equipment costs will be, and whether utilities can accommodate projected demand within the cited connection timelines.
Delivery and Deployment Milestones
The next evidence will be whether the reserved transformer capacity turns into delivered equipment and operating installations, and on what schedule. NVIDIA has said full-scale production for its Kyber systems is planned for 2027; deployment and independent operating results will help test the projected efficiency and copper savings.
For the Microsoft–NiSource agreement, the supplied information confirms a 20-year deal and its stated generation and battery additions, but gives no construction or commissioning timetable. Further contract and project details will be needed to show how the new resources connect to the grid, who bears infrastructure costs, and whether batteries are used to manage data center load or provide services to other grid users.
Key Questions
What happened with Vantage and Heron Power?
Vantage reserved more than 1 gigawatt of factory capacity for Heron Power solid-state transformers designed to convert grid power to 800-volt DC. The report does not say that the equipment has been delivered or installed.
Why are data centers considering 800-volt DC?
AI racks are drawing more power, and higher-voltage distribution can reduce current and potentially cut conversion losses and copper requirements. Specific savings cited by NVIDIA are vendor projections, not independent measurements.
What does the NiSource–Microsoft agreement include?
The 20-year agreement adds about 1,100 megawatts of generation and a 600-megawatt battery, according to the source. It is a separate reported deal; a direct link to Vantage’s transformer reservation has not been established.
Will batteries lower household electricity bills?
That is not established by the reported projects. Batteries may help manage demand or support the grid, but the effect on bills depends on how projects are operated and how generation and network costs are allocated.
Source: ThorstenMeyerAI.com
