Industry News
Next-Generation Data Centers Adopt HVDC Design
(Yahoo Finance 2025-10-13)
[Chen Wei-Tai | Columnist]
Under current rack designs, BBU (Battery Backup Unit) systems are integrated with servers. Firstly, lithium batteries inherently pose stability issues. Secondly, in the event of a fire, the potential losses could be incalculable, a risk no data center in the world can afford. Therefore, Nvidia has decided to incorporate "HVDC" (High Voltage Direct Current) design into the development of its next server platform, Vera Rubin.
[4 Reasons Driving the HVDC Business Opportunity]
1. Safety Consideration: As the news report at the beginning suggests, integrating the BBU with the AI server is a risky practice. Should the BBU accidentally catch fire, it would inevitably affect AI servers costing millions of dollars.
2. Energy Consumption Consideration: In the past, the power supply model for data centers involved converting AC to DC, storing it, then converting it back to AC, and finally stepping it down for the server host. This process involves multiple AC-to-DC conversions, with each conversion causing energy loss. To save unnecessary power consumption, reducing the number of AC-to-DC conversions is a solution.
3. Heat Dissipation Consideration: The previous use of 48V low-voltage, high-current mode required thicker and more copper wiring, which often caused line heating and triggered failures. By switching to 800V high voltage, the current is reduced, which relatively decreases the heat generated and the amount of copper required.
4. Commercial Consideration: BBU battery cells have specific regulations, and currently, only Panasonic, Samsung, and Murata have passed the specifications for 48V BBU battery cells, creating an oligopoly market. However, with global data center clients urgently placing orders and rushing to get online, there is no time to wait, so changing the design may be a fundamental solution.
RiTWIN (7816), an energy storage system and lithium battery module manufacturer invested in by RiTdisplay (8104), is worth noting. Besides its more accessible stock price, RiTWIN is one of the very few domestic manufacturers capable of producing high-voltage lithium battery energy storage modules. While many manufacturers in Taiwan produce battery modules, most focus on low-voltage products for consumer electronics. Therefore, under the future trend of HVDC, RiTWIN is poised to be a natural beneficiary.
Furthermore, RiTWIN is the supplier of uninterruptible power systems for a major domestic semiconductor manufacturer. This year, it has extended the relevant technology to UPS systems for AI server DC server rooms. As the scale of data center construction continues to expand, the proportion of related revenue is expected to gradually increase. Coupled with grid-scale energy storage cabinets, RiTWIN is jointly deploying with strategic partner TaiProventec in markets such as the United States, Japan, the Philippines, and Taiwan. This year, it has already secured a 410MWh energy storage system order, with phased shipments expected to begin in Q4 and continue until 2026. In addition, with the widening difference between peak and off-peak electricity prices from Taipower, the demand for medium-sized energy storage cabinets from private enterprises continues to grow. The company remains optimistic about its future outlook, with this year's EPS projected to exceed NT$5.
