Nvidia's 800VDC Architecture Ignites a New Track for Electrical Equipment! Legrand and Siemens Named by Goldman Sachs

According to a report from Zhitong Finance APP, Goldman Sachs noted in a recent research paper that investor discussions are increasingly focusing on Nvidia (NVDA.US)'s 800VDC architecture, as well as the progress of major electrical equipment original equipment manufacturers (OEMs) competing to develop related product portfolios. These technological changes may reshape the competitive landscape of the industry. Among companies under Goldman Sachs’ European coverage related to the datacenter demand theme, the firm believes the best valuation opportunities are Legrand (upgraded to "Buy" rating today), followed by Siemens (maintained at "Buy" rating).

The transition to an 800VDC power distribution architecture is mainly to address the physical and electrical bottlenecks brought by the scaling up of next-generation AI workloads. During this transition, rack power density is soaring from tens of kilowatts to over 1 megawatt per rack. This architecture will enable higher power efficiency, reduce copper usage by up to 45%, and better manage highly variable load changes. Key products currently under development include: upstream medium-voltage (MV) uninterruptible power supplies (UPS) and sidecar power modules for hybrid configurations and rack-adjacent deployment; solid-state transformers (SST) or MV rectifiers for primary power conversion; high-efficiency DC-DC converters; solid-state circuit breakers; and advanced energy storage systems (CESS/BESS).

The competitive landscape for 800VDC products encompasses traditional electrical equipment giants, solar inverter manufacturers, and startups focused on solid-state transformers (SST). Goldman Sachs notes that there are differences among companies in their technological roadmap choices, as well as varying expectations for the implementation of hybrid AC/DC transformation schemes and fully native 800VDC architectures. Among the traditional industry leaders, Legrand, Schneider Electric, Eaton (EYN.US), Vertiv (VRT.US), and Delta seem to have the most comprehensive product portfolios, covering both traditional products (including power transmission chains, cooling infrastructure, and network infrastructure) and products adapted to the 800VDC architecture. All these companies plan to launch sidecar power modules and are developing or advancing the commercialization of solid-state transformers.

It is especially noteworthy that Legrand's product portfolio announcement at its Capital Markets Day (CMD) exceeded Goldman Sachs' expectations. Highlights include the introduction of new sidecar power modules, organic liquid cooling solutions, and AI load stabilizers, along with the disclosure that the company is developing solid-state transformers (SST). These new additions bring Legrand close to forming a complete product portfolio, helping the company move beyond its traditional dependence on datacenter whitespace infrastructure business. This is one of the core investment rationales behind the firm's rating upgrade to "Buy."

With the transition to an 800VDC architecture, other key areas attracting attention include specialized cables and liquid cooling technology. Due to lower current requirements, cables can be made thinner and smaller. Although reduced copper usage could negatively impact sales volume, for Europe’s leading cable manufacturers such as Prysmian ("Buy" rating) and Nexans ("Buy" rating), higher average selling prices (ASP) resulting from more advanced engineering capabilities may help to boost profit margins. High power concentration in next-generation AI data centers (AIDC) may also accelerate the adoption of high-temperature superconducting (HTS) cables, a market where Nexans is a pioneer.

Liquid cooling technology has also become a key enabling technology for maintaining megawatt-level rack loads in 800VDC data centers, regardless of whether the data center adopts a hybrid architecture or a complete 800VDC architecture. Invt and Vertiv possess extensive liquid cooling product portfolios, covering cold plates, piping, and coolant distribution units (CDUs); Alfa Laval is the market leader in copper-brazed heat exchangers used in CDUs.