Power rack: Will Megmeet See Another Incremental Space Exceeding 30 Billion? | Zhike

Author | Ding Mao

Editor | Zheng Huaizhou (Translated to English as a proper name remains the same, but usually it would be Huaizhou Zheng according to English naming convention)

At the recently concluded GTC 2025 conference, the update of the AIDC power supply architecture became an important highlight in NVIDIA's industrial chain.

Based on Delta's presentation at the GTC conference, the most important points of concern regarding the AI server power supply architecture at this GTC conference are: (1) The power supply units are independently placed in cabinets; (2) The usage of Power shelves is further increased; (3) The importance of components such as BBU, supercapacitors, and PDU is increasing; (4) The SST solution will become the future power supply architecture for AIDC.

Combined with the power supply unit products previously exhibited by Megmeet, it can be basically considered that under the new power supply architecture, the value and importance of server power supply suppliers are further highlighted. As a pioneer of the Power rack solution, Megmeet is expected to benefit the most.

So, what are the key points of concern for NVIDIA's new - generation power supply architecture? And what kind of imagination space will it bring to Megmeet?

Power supply units are independently placed in cabinets

Regarding the power supply architecture, the biggest increment at this GTC conference is the confirmation that the Power rack will become the new - generation power supply technology solution. Looking at the background, as the power of GPUs increases, the requirements for power supply are getting higher and higher. At the same time, the increase in data processing volume has also led to the proportion of GPUs in servers rapidly increasing from 10% to over 70%. This means that there is no extra space in the current IT rack for incremental power supplies and power accessories such as BBU and supercapacitors.

To solve the above problems and ensure the safety and stability of server power supply, at this GTC conference, power supply suppliers such as Delta and Megmeet all demonstrated NVIDIA AIDC's new - generation power supply architecture, which is to move the Power shelf, BBU shelf, Super cap shelf, etc. out of the IT rack and form an independently existing Power rack.

According to the HVDC 800V Power Sidecar previously exhibited by Megmeet, in the power side - cabinet solution, the Power shelf, BBU shelf, Super cap shelf, PDU, etc. are integrated into a highly integrated and independent Power rack. Its input is 384V - 528V alternating current, and the output is 800V direct current. The size is 600mm (W) * 1068mm (D) * 2236mm (H). In terms of specific structure, the PDU solution is integrated at the upper end, the Power shelf is on the left, and the BBU shelf and Super cap shelf are on the right.

Compared with the current power supply architecture, this solution has three advantages. Firstly, it cancels the UPS link outside the cabinet and uses BBU as the backup power supply to reduce losses. Secondly, as the server power continues to increase, the necessity of supercapacitors with the functions of "peak shaving + backup power" for power supply reliability is highlighted. Thirdly, the original AC/DC Power shelf is moved out of the IT rack and integrated with modules such as BBU and supercapacitors into an integrated Power rack.

Combined with the new products such as BBU and Super Cap for GB200/300 simultaneously released by Megmeet, the implementation of the new power supply solution may potentially catalyze Megmeet in three aspects: (1) The development of the company's capabilities in accessories such as BBU and supercapacitors. As the usage increases, it will expand new revenue sources for the company and further highlight the company's platform - type attributes. (2) Under the sidecar solution, Megmeet's role is upgraded from a simple AC/DC supplier to an integrated power supply solution provider, and the value per watt is significantly revised upwards, which will lead to a huge change in the valuation logic.

Further increase in the usage of Power shelves

After the sidecar solution was previously announced, the market once worried that since the AC/DC was moved out of the IT cabinet, Megmeet's original advantageous business would be damaged. However, from the data center power supply architecture evolution diagram released by Delta, in fact, the sidecar solution does not reduce the usage of Power shelves. Instead, the usage of Power shelves is further increased due to the addition of a power supply circuit.

As can be seen from the following figure, the voltage conversion in the data center under this solution can be divided into three levels. Firstly, the 480V alternating current on the PDU side is converted into 800V direct current through the Power shelf on the Power rack side. Then it enters the Power shelf in the IT rack and is converted into 50V direct current. Finally, it is converted into 12V or 0.8V direct current suitable for chips through the chip power supply (DC/DC).

Figure: Delta's demonstration of NVIDIA's power supply architecture. Data source: Delta, compiled by 36Kr

Therefore, in fact, the Power shelves under the sidecar solution can be divided into two types of products: those on the Power rack side and those on the IT rack side. In other words, power supply suppliers such as Megmeet will be further catalyzed by the incremental business of the Power rack on the basis of their original business, which undoubtedly means an increase in the overall value for power supply suppliers.

How much imagination space is there? When will it be implemented?

As mentioned above, if according to the architecture diagram released by Delta, a separate Power rack is added while retaining the Power shelf in the IT rack, then for power supply suppliers such as Delta and Megmeet, the sidecar is a complete incremental part.

The Power rack can be specifically divided into four module groups: PDU module, Power shelf module, BBU module, and supercapacitor module. According to Morgan Stanley's prediction, the value of the four module groups in a single rack is expected to be $11,000, $115,000, $38,000, and $16,000 respectively, and the total value of the entire Power rack is approximately $216,000.

Figure: Morgan Stanley's prediction of the value of the Power rack. Data source: Morgan Stanley, compiled by 36Kr

Regarding the implementation time of the solution, according to Delta's disclosure, in the short term, GB200 and GB300 (Blackwell Ultra) will still use the AC PSU solution based on 5.5/12kw power supplies. In addition, the existing AC system uses more power management devices (SVG + APF) due to the deterioration of the power factor. In the medium term, when the cabinet power exceeds 250kw, the 800V HVDC sidecar power supply architecture solution will be adopted. In the longer term, it will be upgraded to the SST solution.

Currently, the market generally expects that the GB300 in 2025 will introduce an energy - storage tray integrating BBU and supercapacitors. From 2026 - 2027, with the application of the next - generation Rubin, the Power rack solution will also be implemented synchronously. Some optimists even believe that after the large - scale shipment of GB300 in the third quarter of 2025, some Power rack solutions may be tested.

This indicates that it is highly likely that in 2025, power supply suppliers such as Megmeet will gradually implement new incremental businesses such as BBU and supercapacitors. Starting from 2026, with the implementation of the new Power rack solution, Megmeet and others are expected to see a huge incremental value. According to Morgan Stanley's prediction, NVIDIA's server shipments in 2026 are expected to be 50,000 units, of which about 90% are GB300 and higher - end models. If all use the Power rack solution, according to the current architecture of Delta where two servers are equipped with one Power rack, the expected incremental value of the Power rack will exceed 30 billion yuan.

Considering that currently only Megmeet in the supply chain has released an integrated sidecar solution, after the solution is implemented, Megmeet is expected to obtain the largest market share of NVIDIA's Power rack part by virtue of its first - mover advantage. In an extreme case, if Megmeet is the sole supplier of the sidecar, it means that this part of the business can recreate the valuation of a Power shelf. At the same time, considering the accelerating construction of the domestic AI computing power end, it is expected that Megmeet's domestic AI power supply business will also grow synchronously, further boosting the company's performance and laying the foundation for future market value expansion.

However, while paying attention to incremental opportunities, investors also need to consider the geopolitical risks brought by the Trump administration's tariff policies. On April 2, Trump further signed two executive orders on "reciprocal tariffs", indicating that the tariff risks continue to rise. For enterprises such as Megmeet, geopolitical risks will directly affect the profit performance of the company's export business through price or cost changes on the one hand. On the other hand, after continuous tariff increases, US technology stocks represented by NVIDIA face adjustment risks, which may affect the market performance of the supply chain from the valuation side.

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