SolarEdge Expands Data Center Solutions with Infineon for 800V Protection
SolarEdge is deepening its involvement in the data center sector, particularly for AI infrastructure, by expanding its collaboration with Germany's Infineon. The companies will jointly develop Solid-State Circuit Breakers (SSCB) for 800-volt DC power distribution systems. This builds upon their previous work on Solid-State Transformers (SST) for data centers.
The SST aims to convert medium voltage from the grid directly to the DC voltage required by data centers. The new SSCB technology will handle the subsequent stage: protecting the power flow between the transformer and server racks. This initiative aligns with SolarEdge CEO Shuki Nir's strategy of viewing data centers as a long-term growth engine, though significant revenue is not expected immediately.
The increasing power demands of AI computing are driving the industry towards higher voltage DC power distribution, specifically 800-volt architectures. While higher voltage DC allows for more power transmission at lower current and fewer conversion steps, it presents a challenge in quickly interrupting electrical current during faults. Unlike AC, DC lacks a natural zero-crossing point, making it difficult for mechanical breakers to extinguish arcs. SSCBs, utilizing semiconductor technology, can cut off current in microseconds, crucial for protecting expensive server and GPU equipment and ensuring system availability.
Under the agreement, SolarEdge will design the SSCB solution, while Infineon will supply its CoolSiC JFET components based on silicon carbide. Nir stated that 800-volt high-density AI infrastructure requires "uncompromising efficiency and protection," and Infineon's technology will enable rapid fault isolation without significantly impacting conversion efficiency.
This new collaboration extends the companies' previous project announced in November 2025, which focused on a modular SST platform (2-5 megawatts) designed for direct conversion from 13.8-34.5 kV to 800-1,500 V DC with over 99% efficiency. The goal is to reduce conversion stages, thereby saving space, heat, and energy. Nir highlighted that even small efficiency gains can translate into substantial revenue for data center operators by freeing up power for GPUs, potentially generating over $100 million annually per additional megawatt.
While this development is significant for SolarEdge's future strategy, it is currently a technological development rather than a commercial contract. The company aims to complete an SST system in its labs by the end of 2026, with pilot installations planned for 2027 and large-scale commercial deployment expected in 2028. This indicates that the financial impact of the data center business is still several years away.
In contrast, SolarEdge's core business in solar energy converters, optimizers, and batteries continues to drive its current revenue. In the second quarter of 2026, the company reported $346.2 million in revenue, a 20% increase year-over-year, and achieved its first non-GAAP operating profit since Q2 2023. However, it still incurred a GAAP net loss of $30.8 million. The company faces ongoing challenges in the U.S. residential solar market and seasonality in Europe, making the data center sector a potential avenue to diversify away from solar market cyclicality.
