Is the move from AC to DC distribution inside AI data centers actually happening? Eaton's chief executive Paulo Ruiz told investors on 3 November that it is, because customers see large power savings in it, but that the timing of the change is not in Eaton's hands. Utility Dive reported the remarks on 5 November, from the company's third-quarter call.
A 2 MW Solid-State Transformer Through UL
The hardware behind the statement is a 15 kV, 2 MW solid-state transformer. According to Ruiz, it is to Eaton's knowledge the first multi-megawatt unit to pass all tests under a new UL Solutions standard. A solid-state transformer does with power semiconductors and magnetics what a conventional unit does with a large core of electrical steel and copper windings, and it is more compact and efficient than the medium- and low-voltage transformers it replaces. Eaton bought the technology with Resilient Power Systems in August 2025, for $86 million according to its earnings release.
Eaton expects 800 V DC to become the industry standard for data center distribution. Utility Dive cites a McKinsey analysis that such designs could cut non-IT capital spending by up to 18 percent, and a test earlier this year by EPRI, the New York Power Authority and NC State, in which a 1 MW solid-state transformer halved power losses compared with a conventional arrangement. Ruiz did not sell it as a one-way bet: the AC designs are not bad, he said, and Eaton wins either way. He counts the transformer among several building blocks, next to DC breakers, power quality and advanced cooling.
Orders Running Ahead Of Output
The quarter gave him room to say so. Eaton's release reports record sales of $8.9 billion, up 28 percent, of which 19 points were organic growth. Electrical Americas, a little less than half of the quarter's sales, sold $4.2 billion, up 22 percent organically, and its rolling twelve-month orders rose 39 percent. Utility Dive puts the segment's backlog at $16 billion, 33 percent above a year earlier. Ruiz told analysts that demand still runs ahead of what Eaton can convert into shipments, and that the data center projects announced worldwide add up to 366 GW against about 50 GW installed. Eaton has also agreed to buy COL Group, an Italian maker of medium-voltage distribution equipment with about 400 employees, for EUR 810 million; closing is expected in the first quarter of 2027.
What Stays The Same At The Generator End
For the people who plan backup and on-site generation, DC inside the hall does not remove the generator from the site. Gensets and gas engines still produce AC at medium or low voltage, and the conversion simply moves to a different place in the chain. What changes is the interface: who supplies the conversion equipment, where it stands, and how the generator, UPS and batteries are coordinated when the load steps. Those questions belong in the first design review, not at commissioning. Power electronics also turn their losses into heat in the electrical rooms, so the cooling load moves with them. Our data centers page covers the generator side; the same 800 V DC topic came up in our report on Vantage and Heron Power.
