The global AI Power Supply Units (AI PSU) market is set for explosive growth as artificial intelligence workloads drive unprecedented demand for high-efficiency, high-wattage power solutions in data centers. According to a new report by Fact.MR, the market was valued at USD 560.4 million in 2025 and is projected to reach USD 6.3 billion by 2036, expanding at a compound annual growth rate (CAGR) of 24.6%. The industry is expected to create an absolute dollar opportunity of USD 5.6 billion, growing nearly 9X between 2026 and 2036.
“The AI PSU market is no longer driven by traditional server power requirements alone,” said Shambhu Nath Jha, Principal Consultant at Fact.MR. “Hyperscale AI data center expansion, rising GPU deployments, and the need for energy-efficient computing are transforming power supply units into a critical component of next-generation digital infrastructure.”
Key market highlights include multi-rail PSUs accounting for 62% of market share in 2026, PSUs with output ratings between 1,000W and 3,000W holding 46% share, hot-swappable PSUs capturing 43% share, and air-cooled PSUs remaining dominant at 58% market share. Geographically, India (28.9% CAGR) and China (27.6% CAGR) emerge as the fastest-growing markets, while the United States is projected to expand at a 25.8% CAGR through 2036.
The rapid growth of hyperscale data centers and cloud computing infrastructure is creating substantial demand for advanced power delivery systems. AI workloads require higher energy consumption than traditional computing environments, making efficient and reliable PSU solutions essential for operational performance. Multi-rail power supply units are gaining widespread adoption because they provide superior load balancing, improved safety, and enhanced reliability in high-density AI server environments. Meanwhile, demand for hot-swappable and modular PSU configurations is increasing as operators seek uninterrupted operations and simplified maintenance.
In North America, investments from major cloud providers and AI infrastructure developers continue to drive market growth. Europe is also investing in energy-efficient data center technologies, with Germany projected to grow at a 21.2% CAGR. The Asia Pacific region is witnessing exceptional growth due to rapid digital transformation and government-backed AI initiatives. Industry innovation is increasingly centered on high-efficiency architectures, liquid-cooling compatibility, Gallium Nitride (GaN) technologies, Silicon Carbide (SiC) power electronics, and smart power management systems.
Leading manufacturers operating in the AI PSU market include Delta Electronics, Inc., LITE-ON Technology Corporation, AcBel Polytech Inc., FSP Group, Advanced Energy Industries, OmniOn Power Inc., Shenzhen Megmeet Electrical, and Great Wall Power Technology Co., Ltd. As AI infrastructure deployment accelerates globally, advanced power supply units are expected to become a critical enabler of data center performance, energy efficiency, and operational reliability.
For more detailed analysis, the full report is available at Fact.MR.
