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As AI racks approach 1 MW, Schneider Electric moves power conversion outside the rack

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Schneider Electric says AI workloads are pushing rack power requirements toward the megawatt scale, driving changes in data center power architecture. (Photo: Schneider Electric)

Schneider Electric says AI workloads are pushing rack power requirements toward the megawatt scale, driving changes in data center power architecture. (Photo: Schneider Electric)

As AI infrastructure pushes rack densities beyond the limits of traditional data center power systems, Schneider Electric is preparing for a transition to 800-volt direct current (800V DC) architecture.

Speaking at COMPUTEX 2026 in Taipei, the company outlined how power distribution, backup systems, and grid integration will need to evolve as AI workloads drive rack power requirements from today’s hundreds of kilowatts toward the megawatt scale.

Schneider Electric argued that infrastructure must adapt as data centers increasingly resemble what NVIDIA CEO Jensen Huang has described as “AI factories” rather than conventional computing facilities.

Unlock the full article to explore three key takeaways:

  1. AI rack densities approaching 1 MW are driving a shift toward 800V DC architectures and externalized power conversion systems designed to maximize space for compute hardware.
  2. Schneider Electric's "sidecar" design represents an intermediate step as data centers evolve into industrial-scale AI factories.
  3. Growing AI campuses are creating grid-level challenges, including transmission constraints, rising interest in on-site generation, and increasingly volatile power demand.
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