ABB and Boston Consulting Group (BCG) have published a report arguing that direct current (DC) is becoming increasingly important in power infrastructure, driven in particular by artificial intelligence, electrification and renewable energy. The report says the future of electricity distribution will not be a matter of choosing between alternating current (AC) and direct current, but of building a hybrid system that combines both.
The central argument is that DC is gaining ground because many of today’s fastest-growing loads and generation sources naturally operate on it. Data centers, AI-related computing infrastructure, battery storage and solar power all rely heavily on DC at some stage, which makes conversion losses and system complexity a growing concern in increasingly electrified grids.
Rather than replacing AC, the report envisions a complementary model in which DC is used where it is most efficient, while AC remains the backbone of existing transmission and distribution networks. In this framework, hybrid architectures could improve efficiency, reduce conversion steps and better support the rapid expansion of digital infrastructure and renewable energy capacity.
The report positions this shift as a structural evolution in electricity networks, with implications for utilities, equipment makers and infrastructure planners as they adapt to rising demand and the changing technical requirements of the energy transition.