Powering AI: The Critical Role of Electricity
When we talk about the AI industry, the first things that often come to mind are semiconductors and GPUs. However, the true foundation supporting the AI era is electricity.
As AI technology continues to advance, AI data centers are rapidly expanding, driving a significant increase in electricity demand. At the same time, as carbon neutrality has become a global priority, data center operators are facing the challenge of meeting growing power demand while also reducing carbon emissions. In response, global technology companies, including Google and Microsoft, are actively incorporating renewable energy into their AI data center operations.
The Technology Connecting Renewable Energy with AI Data Centers
Solar power generation is characterized by intermittency, meaning that the amount of electricity generated varies depending on sunlight conditions. For example, power generation may decrease at night or on cloudy days, making it difficult to produce sufficient electricity.
To address this limitation, an ESS (Energy Storage System) stores excess electricity generated during the day and supplies it to the grid when solar power generation is insufficient, helping ensure a more stable power supply.
However, the electricity generated by solar modules and the electricity stored in an ESS are both in the form of direct current (DC), which cannot be used directly by AI data centers. To be used by data centers, it must first be converted into alternating current (AC). Solar-generated electricity is converted from DC to AC by an inverter, while electricity stored in an ESS is converted by a PCS (Power Conversion System).
Renewable energy does not end with power generation. For it to be actually utilized by AI data centers, electricity must be converted into a form that can be used by the facility. At the center of this process is power conversion technology.
*[Term 1] Direct Current (DC): A form of electricity in which electric current flows continuously in one direction.
*[Term 2] Alternating Current (AC): A form of electricity in which the magnitude and direction of electric current periodically change over time.
“If I had to highlight just one of OCI Power’s technologies, I would introduce our power conversion technology.
Inverters and PCS are, after all, equipment based on power conversion technology.”
— Kim Seong-yeop, CEO of OCI Power
▲ OG 4400 High-Efficiency Modular Central Inverter ▲ OS 500 PCS for ESS
OCI Power’s Global Strategy
OCI Power identifies the United States as a key market for expanding its global business.
Recently, the United States has been moving to strengthen regulations on Chinese-made power conversion equipment, including solar inverters, from a national security perspective. Because solar inverters and ESS PCS are critical components connecting renewable energy to the power grid, not only product performance but also the country of origin has become an important consideration.
Against this backdrop, OCI Power is strengthening its competitiveness in the U.S. market based on its accumulated technological expertise and the trust associated with “Made in Korea.”
The United States also saw rapid development of large-scale solar power plants throughout the 2010s, and OCI Power supplied inverters to numerous projects. As many of these plants have now been in operation for more than 10 years, demand for repowering is gradually increasing. OCI Power sees this growing demand as a new growth opportunity in the U.S. market, aligning with the company’s broader vision for future growth.
*[Term 3] Repowering: A business involving the replacement of aging equipment at an operating power plant with newer equipment to improve power generation performance and efficiency.
“OCI Power aims to continuously expand its systems and services based on our product competitiveness and ultimately grow into a company that provides integrated solutions to customers.”
— Kim Seong-yeop, CEO of OCI Power
OCI Power continues to strengthen its competitiveness through ongoing technological development and global market expansion. As the importance of power infrastructure grows alongside the expansion of the AI industry, all eyes are on the future OCI Power is building.
(Written by Jae-in Shin, OCI Power Press Corps)
