The Strategic Imperative for New Power Architecture in AI Factories
The dawn of the Artificial Intelligence (AI) era is upon us, and with it comes a seismic shift in how we build, deploy, and power our digital infrastructure. AI is the present and the future of augmented innovation across industries—from defense to healthcare, finance to software engineering, transportation, and manufacturing. As AI continues to evolve, so too must the infrastructure that supports it. Enter the AI factory: a new generation of data centers designed specifically to handle the massive computational demands of large-scale AI workloads.
The Rise of AI Factories
An AI factory is not an average cloud-related data center. They are purpose-built to support the high-density, high-frequency, and high-performance computing requirements of AI applications. These facilities are characterized by their gigawatt-scale capacity, drawing from thousands of kilowatts to ultimately one megawatt per rack power loads. According to recent data, the existing 12,000 data centers accounting for a total of 135 gigawatts worldwide should grow towards 300 gigawatts of capacity by 2030, with an upgraded installed base of 15,000 data centers[1]. Within this growth, the average data center size is expected to increase by 72%, with more than 20 gigawatt-scale AI factories – each ranging from 1 to 5 gigawatts – projected to be built by 2030. The International Energy Agency further projects that global data center electricity consumption will more than double by 2030, with the U.S. accounting for nearly half of that growth[2].
The Challenge: Powering Gigawatt-Scale AI Factories
The rapid proliferation of AI workloads is straining existing power grids, revealing significant challenges in capacity, reliability, and infrastructure deployment. Limited transmission capacity, aging substations, and lengthy permitting timelines are just a few of the hurdles facing the connection of new AI factories to national grids. Moreover, the dynamic and unpredictable nature of AI workloads – characterized by frequent, large swings between high and low power consumption and high frequency load variability – poses unique stability challenges for the grid and on-site generation power quality.
Furthermore, traditional data center requirements for power supply—reliability, latency, affordability, and sustainability—are amplified in the context of AI factories. The intermittent nature of renewable energy sources, the need for rapid energy injection during power network disruptions, and the requirement for load voltage ride-through capability further complicate the design and operation of AI factory power systems.
The Vision: New Power Architecture
To meet these challenges head-on, GE Vernova is pioneering new power architecture for AI factories. This architecture is built on five main elements:
- Grid Infrastructure: High-voltage to medium-voltage transformers, breakers, switchgear, and protection and control systems that enable seamless interconnection from the point of power generation to the AI factory.
- Generation: A mix of baseload, standby, and black start generation capabilities, including gas turbines - CO₂ capture ready, renewable sources, and small modular reactors for a low-carbon energy strategy.
- Stability Solutions: A combination of hardware and software solutions, including Battery Energy Storage Systems, advanced STATCOMs with supercapacitor energy storage, and digital platforms for grid orchestration and management.
- Energy Management System: High-resolution, low-latency systems that empower operators to monitor, control, and improve energy consumption in near real-time.
- Bulk Grid: The main grid supply point that provides power at a capacity and voltage level negotiated based on the AI factory’s requirements.
In collaboration with key data center stakeholders, GE Vernova has developed three reference designs to guide the deployment of AI factories: grid-connected, islanded, and bridging power. These standardized designs enable faster deployment, greater scalability, and improved reliability, ensuring that the demanding requirements of AI workloads are met.
Looking Ahead: 800 VDC Distribution
As we look towards the future of AI factories, it's important to consider the evolving landscape of power distribution with the escalation of power up to 1 megawatt per server rack. While traditional alternating current systems have served us well, the dynamic and high-density power demands of AI workloads are pushing the boundaries of what these systems can handle, especially in terms of plot, footprint, and energy efficiency. In response, we are engaging with the transition to 800 VDC distribution systems, and exploring even higher-voltage optionality, a shift that is fundamental to powering the rising demands of AI workloads. GE Vernova is at the forefront of this transition, leveraging its experience in designing and delivering higher-voltage direct current distribution systems from other industrial applications – a must-have for meeting the energy efficiency challenges of electro-intensive industries. This shift to DC architecture offers several strategic and operational benefits, including global flexibility, alternative semiconductor and magnetic materials, and space efficiency. While this transition requires careful planning and validation, it promises to enhance efficiency, scalability, and resilience in AI factory power infrastructure. As we continue to innovate and collaborate with industry stakeholders, we are committed to paving the way for the next generation of AI factories, ensuring they are powered by the most advanced and reliable systems available.
The Urgency for Action
The strategic urgency for adopting new power architecture in AI factories cannot be overstated. As the demand for AI-ready data center capacity grows at an average annual rate of approximately 33% between 2023 and 2030[3], the need for reliable, scalable, and high-performance power infrastructure becomes increasingly critical.
The future of AI is bright, but it requires a robust, innovative, and seamless “power-to-rack” architecture to support it. GE Vernova is committed to collaborating with the AI gigafactory ecosystem to enable the next generation of AI factories through rigorous validation, targeted design improvements, leadership in establishing industry standards, and ensuring that AI gigafactories can operate with maximum efficiency, resilience, and room for future growth.
For an in-depth look at the trajectory of AI factories, check out our latest whitepaper “AI Factory: Reference Designs”.