[Solving AI's Power Crunch with Direct Current] (4) South Korea's Power Sector, Armed with Technology, Eyes Global Market Lead

Following Nvidia's 800VDC Transition Announcement
South Korea Responds with Fast Delivery and Turnkey Solutions
Experts: "Technology Validation, Demonstration Projects, and Private-Sector Participation in Standards-Setting Are Essential"

Nvidia's adoption of an 800-volt direct-current (800VDC) power supply system for AI data centers is opening up opportunities for growth in South Korea's power equipment industry. Demand is expected to rise for related equipment and systems as the need for direct-current technology, which reduces losses during power conversion, increases. Industry observers say companies will need to validate their technology on actual power grids and actively participate in international standards discussions to gain an early foothold in the market.

From Inside Servers to Regional Power Grids... The Direct-Current Market Is Expanding

According to industry sources on October 21, large-scale AI data centers face major challenges in securing power and dealing with delays in power equipment deliveries. As power consumption surges in server racks packed with high-performance graphics processing units (GPUs), the need to reduce power losses and heat generation is also growing.

Nvidia's planned 800VDC system supplies direct current to server racks, reducing the number of power conversion stages. Demand for direct-current power equipment and control systems is expected to increase as the existing alternating-current-based supply infrastructure is replaced.

South Korean industry players are seeking to enter the market by leveraging their technological capabilities and ability to meet delivery schedules. Their strategy is to lower construction costs by supplying power equipment and energy management systems (EMS) as an integrated package, while shortening delivery times by making use of local facilities in the United States. "Low-voltage direct current (LVDC) is an area in which South Korea has focused on developing technology since the 2010s," said Kim Seulgi, a principal researcher at the Korea Electrotechnology Research Institute. "The current increase in demand for direct current is an opportunity for South Korean companies to gain an early foothold in the market."

Demonstration projects are also underway in the medium-voltage direct current (MVDC) sector, which applies direct current to regional distribution grids, beyond the confines of data centers. Korea Electric Power Corporation is carrying out a project to apply MVDC technology to a public distribution grid along a 6-kilometer section between Naju and Wangok.

Korea Electric Power Corporation is also working to establish international standards alongside its demonstration projects. After leading the publication of the International Electrotechnical Commission's (IEC) MVDC white paper in 2025, it submitted a proposal in October to establish a South Korea-led subcommittee. The plan is for South Korea to serve as the secretariat and lead the development of related international standards through 2032.

Operational Track Record Is the Next Step After Technological Capability... Competition Over Standards Has Begun

For market growth to translate into orders, companies must demonstrate not only the performance of individual devices but also their ability to operate the entire power grid reliably. This is because sharp fluctuations in AI data center power consumption can affect the connected grid.

"Sudden load fluctuations at AI data centers can destabilize the entire power grid," said Lee Jino, a professor at the Korea Institute of Energy Technology. "We need to demonstrate that South Korea's power system can accommodate and control these fluctuations reliably."

Support for demonstration projects from the government and Korea Electric Power Corporation is also needed. Industry sources say it is difficult to secure overseas customers without a track record of stable operations in real-world settings, even if the technology has been successfully developed. "We need to continue national demonstration projects, including the MVDC test bed scheduled to run through 2029," Kim said. "Support is needed to help South Korean companies validate their products and build up their operational track records."

Companies' participation in international standards discussions is another challenge. If technical specifications developed by overseas companies are adopted as standards, South Korean companies may have to redesign their products or change their production facilities to comply. "Global leaders have secured a voice by participating in international standards organizations for many years," Kim added. "Long-term investment is needed to ensure that the technologies and views of South Korean companies are reflected in standards, starting with fields such as MVDC, where the market is still in its early stages."

This content was produced with the assistance of AI translation services.