Delta Electronics Lands North American AI Deal, First Phase to Deploy 100MW of Solid-State Transformers

What is the background and goal of the Delta Electronics-X LABS partnership?

According to Liberty Times (自由時報), Delta Electronics (2308) signed a memorandum of understanding this week with energy services developer X LABS in California, positioning the two companies to jointly pursue an "energy-as-a-service" (EaaS) model for AI data centers [E1]. Delta Electronics Vice Chairman Simon Chang (柯子興) said the AI industry is facing power infrastructure challenges, and that Delta values X LABS' capability in developing large-scale energy parks. He said the partnership is built on long-term mutual trust and is aimed at "solving the most important power supply challenge for AI infrastructure over the next decade" [E3].

What is the scope of the first-phase 100MW deployment, and what comes after?

Under the MOU, the first phase calls for deployment of 100MW of solid-state transformers (SST) [E2]. Liberty Times reported that the two companies plan to scale beyond this initial phase toward gigawatt (GW)-level capacity, targeting the high-density power demands of next-generation AI data centers [E2]. No specific timeline or contract value for the GW-scale phase was disclosed in the report.

Why does solid-state transformer technology matter for AI data centers?

According to TechNews (科技新報), the power gap between traditional and AI-focused data centers illustrates why this technology matters: legacy data center facilities typically required around 100MW of power, whereas today's AI data centers are measured in GW — a roughly 100-fold difference in power demand that requires power conversion efficiency to improve by a comparable order of magnitude [E12]. That escalation is visible at the rack level too: as NVIDIA's server platforms moved from GB300 to the Vera Rubin generation, the power draw of a single rack rose 1.5-fold to 225KW, equivalent to the electricity consumption of more than 400 households, per TechNews [E8].

What progress has Delta Electronics made on high-voltage DC power and solid-state transformers?

Delta Electronics President Neil Chang (張訓海) predicted during a livestreamed session at NVIDIA's GTC Taipei event on June 1 that the next major technology revolution for AI data centers would come from solid-state transformers, given rising demands on power stability and energy efficiency. He said Delta had begun laying the groundwork for this technology five to ten years earlier, expects development to accelerate over the next one to two years, and that a breakout period could arrive as early as next year [E4].

That groundwork traces back to 2023, when Delta partnered with the U.S. Department of Energy on a project to develop solid-state transformers, originally conceived for electric vehicle charging stations. Delta later found the component also suited AI data centers and industrial applications, and accelerated sample submissions to four major North American cloud service providers (CSPs) for certification, according to TechNews [E13]. On the manufacturing side, TechNews reported that Delta's 800-volt high-voltage DC power cabinets — originally slated for mass production in the fourth quarter — have had that timeline moved up to the third quarter [E11].

What role does Delta Electronics play in the 800-volt power shift for AI infrastructure?

In August 2025, NVIDIA named 18 international partners to advance what TechNews described as an "800-volt power revolution," a list that included Taiwan's Delta Electronics and Lite-On Technology (光寶科) [E9]. This positions Delta among a defined group of named partners supporting NVIDIA's shift to higher-voltage power architectures for AI infrastructure, though the report did not detail the specific responsibilities assigned to each partner.

How is Delta Electronics preparing on high-power cooling and customized power solutions?

The move to 800-volt architectures has forced changes down to the component level. Delta Electronics Power & System Business Group General Manager Kevin Chen (陳盈源) told TechNews that connectors previously had no 800V specification at all, meaning "everything has to be customized" [E10]. Looking further ahead, Delta Electronics Power & Component Business Executive Vice President Victor Shih (史文景) said the company's power supplies will next move to "full liquid cooling," with that product expected to become available in 2027 [E14].

Key figures at a glance

What this means

Taken together, the evidence points to a company moving in step with an industry-wide power constraint. Delta's president had flagged solid-state transformers as the coming "key technology revolution" back in June [E4], and within weeks the company translated that forecast into a concrete 100MW commitment with X LABS [E2], alongside an accelerated production timeline for its 800V HVDC cabinets [E11]. The scale of the underlying problem — a 100-fold jump in power demand between legacy and AI data centers, and a 1.5-fold rack-power increase in a single NVIDIA server generation [E8][E12] — helps explain why Delta's technology roadmap, which began in 2023 as an EV-charging project before pivoting to data centers [E13], and its inclusion among NVIDIA's 18 named 800V partners [E9], are now converging on the same North American deployment described in this MOU.