With their acquisition of Lineage Power Holdings GE doesn’t simply make their play for the cloud computing power market, but also puts a stake in the ground that says DC power is the future for the datacenter and we will be betting the company (or at least this part of the company) on this being the future.
GE was already a leading proponent of the DC datacenter, with their Validus DC Data Center system, and adding LPH and its high-profile customer base will give them additional clout, not just with technologies they are acquiring, but with their ability to market DC power as the datacenter solution. When most people think about DC power in industrial use, the most common consumer mentioned are the big telcos. By showing a much broader range of customers, GE’s marketing message for their DC solutions will be much more effective.
Currently the datacenter power battle between AC and DC is focused on “green” DC power requires fewer state conversions than AC, resulting in a reduction in the amount of heat and waste in the energy consumed by the datacenter. AC power means that you can just plug almost any existing server into your system, while DC means that you need to, in most cases to invest in new hardware that will run on the direct current option (obviously, installing conversion equipment to support either sort of defeats the whole purpose of going DC).
With such a small percentage of the datacenter power infrastructure being their current customers, it appears that GE hopes that they can become the premier provider of DC equipment to the datacenter, giving them leverage to increase their market share at the expense of the better known players in the market .