The WS hub can accept either AC or DC. As noted above the WS transformer is 16V AC, 1000 mA.
Each hub can daisy-chain the incoming AC (or DC) voltage to the next hub. Within each hub, the voltage is converted from AC-to-DC by a....wait for it....bridge rectifier! It then drives DC to each of its 4 LED outputs - each output has its own brightness control knob.
Note that from way back when, even HO DC train transformers typically supplied an AC output for accessories. I wouldn't be surprised if the issue of whether or not Menards buildings should directly accept 16V AC (or whatever) and/or 4.5V DC via switch selection, automatic selection, from different input connectors, etc. etc. is a topic of discussion at the alleged meeting Menards is having with their factory engineers this month...