Bottom Line
The AI data center bottleneck has moved past compute, memory, and connectivity to power delivery, and SiC/GaN power semiconductors sit at the silicon bottleneck of the 800V DC transition.
As rack power leaps from 120kW to 600kW and 800V DC becomes the standard, where do onsemi and Infineon stand?
The AI data center bottleneck has moved past compute, memory, and connectivity to power delivery, and SiC/GaN power semiconductors sit at the silicon bottleneck of the 800V DC transition.
Rack power leaps from 120kW to 600kW (2027), pushing 54V distribution to its physical limit, and NVIDIA has moved to an 800V HVDC architecture, naming onsemi and Infineon as silicon partners.
Potential beneficiaries — Infineon (power-semi #1, AI power EUR 1.5bn FY26 to EUR 2.5bn FY27), onsemi (data center revenue doubling in 2026), GaN and power-infrastructure suppliers. Pressured — suppliers centered on low-voltage silicon MOSFETs, single-exposure EV SiC makers.
Quarterly: onsemi's data center revenue mix and Infineon's GIP (Green Industrial Power) segment — if both rise while offsetting the EV slowdown, the axis-shift thesis holds.
The real question a data center architect now asks is not how many GPUs to pack in. It is how to feed those GPUs electricity without losing it.
Rack power did not rise gently from generation to generation. It jumped in steps. Rack power that ran around 120kW on GB200 and 140kW on GB300 leaps at once to 600kW in the Rubin Ultra generation. Liquid cooling handles the heat somehow. What remains is electricity.
Power equals voltage times current (P = V x I). If a rack draws 600kW and the distribution voltage is low, current explodes. Higher current makes two things worse at once. The busbar copper grows thicker and heavier. And heat loss rises with the square of the current (I-squared-R). Double the current, and loss is four times higher.
The path forms a single chain: rack power surge -> current explosion -> copper cross-section limit -> conversion loss stacking -> low-voltage distribution collapse. The conclusion the industry reached at the end of this chain is clear. Cut the current. The only way to cut current is to raise voltage.
The fight to pack in more GPUs is over. Now it is a fight over how to deliver the electricity.
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