NEMA Projects 300% Data Center Energy Growth, Launches DC Power Guidance

NEMA projects data center energy consumption could rise as much as 300% over the next 10 years, and the Arlington, Virginia-based trade body's answer is a new standard pushing direct current (DC) power architectures to the center of AI facility design.

The National Electrical Manufacturers Association published Data Center Design Considerations for Direct Current (DC) Power Systems (NEMA CS 70018-2026) on its own initiative, targeting developers, engineers and facility managers weighing DC distribution against conventional alternating current (AC) builds. The stakes are straightforward economics: every power conversion inside a facility bleeds energy and generates heat that cooling systems must then remove — a double hit to operating cost.

Why conversions matter to the bottom line

Most data centers run AC architectures, converting electricity to DC at the point where it energizes computing equipment. Each conversion stage introduces losses and adds thermal load. DC architectures cut the number of conversion stages, which NEMA says would improve energy efficiency, lower operating costs and ease thermal management. Fewer conversions also make it easier to integrate battery storage and on-site renewable generation — a growing consideration as AI workloads concentrate power demand.

"Every unnecessary power conversion inside a data center represents an opportunity to improve efficiency," said Patrick Hughes, NEMA SVP of Strategy, Technical, and Industry Affairs. "And in an energy-intensive AI data center, even modest improvements can add up to significant energy savings."

Hughes was careful to frame DC as an option to evaluate, not a mandate: "DC power architectures offer promising possibilities, but they also change how facilities are designed, protected, and operated. This new guidance gives the industry a shared, manufacturer-neutral foundation for evaluating those opportunities and tradeoffs safely and effectively."

In short: the gain is real but conditional, and the standard exists to structure the tradeoff analysis.

What the standard actually covers

NEMA CS 70018-2026 addresses technical, operational and regulatory considerations across four areas:

• Energy efficiency — reducing conversion losses and the cooling load those losses create.
• System integration — connecting DC distribution with computing equipment, battery storage and other facility systems.
• Safety and reliability — requirements for DC-rated equipment, fault protection, maintenance and system coordination (how protective devices across a facility respond together to a fault).
• Practical deployment — equipment availability, infrastructure compatibility and other factors affecting installation and long-term operation.

The publication is meant to inform decisions early in the design process, giving owners, engineers, manufacturers and other stakeholders a common reference. Brian Deckard, Technical Expert at Siemens, underlined the coordination problem the standard addresses: "The adoption of DC power architectures requires careful coordination between power distribution equipment, protection systems, energy storage, and computing infrastructure. This resource helps the industry align on the technical considerations necessary to improve efficiency while maintaining safety, reliability, and operational resilience."

That alignment matters for distributors of electrical equipment too: shared, manufacturer-neutral criteria tend to shorten spec cycles and clarify what DC-rated gear needs to be stocked.

Part of a three-document framework

CS 70018-2026 does not stand alone. It complements two other recent NEMA publications:

• NEMA BS 31061-2026 on low-voltage distribution equipment
• NEMA BE 50104-2026 on data center cooling technologies

Together, the three treat electrical distribution and cooling as interconnected design elements — increasingly necessary as more powerful AI systems strain both simultaneously. All three support NEMA's broader AI Data Center Energy Performance Framework, developed with ASHRAE (the building-standards body) and Pacific Northwest National Laboratory, which pools technical guidance and best practices for safe, reliable and efficient data center development.

With a 300% consumption forecast on the table, expect DC power evaluation to move from niche engineering debate into standard design-phase due diligence across the AI buildout.