Published by Global Banking & Finance Review®
Posted on May 20, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleInfineon and Nvidia collaborate on advanced power delivery chips for AI data centers, focusing on centralized direct-current systems to enhance energy efficiency.
By Stephen Nellis
SAN FRANCISCO (Reuters) -German chipmaker Infineon said on Tuesday it will work with Nvidia on developing chips for new power delivery systems inside artificial intelligence data centers.
Infineon said it will work with Nvidia to develop high-voltage, direct current power delivery systems. In current data centers, most high-voltage power is distributed as alternating current and then converted to the direct current needed by computer chips by individual power supply units inside of servers.
But that method of distributing power introduces losses in moving power around and converting it. With each server rack within AI data centers expected to take a megawatt of power by the end of the decade, Infineon and Nvidia said they are hoping to reduce those losses by creating a centralized direct-current distribution system.
“Through this innovative approach, Nvidia is able to optimize the energy consumption of our advanced AI infrastructure, which supports our commitment to sustainability while also delivering the performance and scalability required for the next generation of AI workloads,” Gabriele Gorla, vice president of system engineering at Nvidia, said in a statement.
(Reporting by Stephen Nellis in San Francisco; Editing by Lisa Shumaker)
Infineon is collaborating with Nvidia to develop chips for new power delivery systems inside artificial intelligence data centers.
They are focusing on high-voltage, direct current power delivery systems, which aim to reduce losses associated with power distribution.
The new method is crucial as each server rack in AI data centers is expected to require a megawatt of power, making efficient power distribution essential.
Nvidia's innovative approach helps optimize energy consumption in AI infrastructure, aligning with their commitment to sustainability.
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