The whole thing with eliminating 70 discrete 1U server size AC-to-DC power supplies is nothing new. It's the same general concept as the power distribution unit in the center of an open compute platform rack design from 10+ years ago.
Everyone who's doing serious datacenter stuff at scale knows that one of the absolute least efficient, labor intensive and cabling intensive/annoying ways of powering stuff is to have something like a 42U cabinet with 36 servers in it, each of them with dual power supplies, with power leads going to a pair of 208V 30A vertical PDUs in the rear of the cabinet. It gets ugly fast in terms of efficiency.
The single point of failure isn't really a problem as long as the software is architected to be tolerant of the disappearance of an entire node (mapping to a single motherboard that is a single or dual cpu socket config with a ton of DDR4 on it).