AI Power Supply Units Market to Reach $6.3 Billion by 2036 Amid Surging AI Data Center Investments

The global market for AI power supply units (PSUs) is set to expand dramatically, with projections indicating it will reach USD 6.3 billion by 2036, according to a new report from Fact.MR. The market, valued at USD 560.4 million in 2025, is expected to grow at a compound annual growth rate (CAGR) of 24.6% from 2026 to 2036, creating an absolute dollar opportunity of USD 5.6 billion as enterprises, hyperscalers, and cloud providers invest heavily in AI-ready infrastructure.

The rapid adoption of artificial intelligence, machine learning, high-performance computing (HPC), and generative AI applications is driving up power density requirements in modern data centers. This is fueling demand for high-efficiency, high-wattage PSUs capable of supporting advanced GPU clusters and AI servers. “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 from the report include that multi-rail PSUs are expected to account for 62% of the market share in 2026, while PSUs with output ratings between 1,000W and 3,000W will hold a 46% share. Hot-swappable PSUs are projected to capture 43% of the market, and air-cooled PSUs remain dominant with a 58% share. Regionally, India is forecast to be the fastest-growing market with a 28.9% CAGR, followed by China at 27.6% CAGR, driven by government-backed AI initiatives and strong domestic manufacturing. North America remains the largest market, with the United States expanding at a 25.8% CAGR through 2036, supported by investments from major cloud providers.

The 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, making efficient and reliable PSU solutions essential. Multi-rail PSUs are gaining traction for superior load balancing and reliability, while hot-swappable and modular configurations are increasingly sought after for uninterrupted operations and simplified maintenance.

Europe continues to invest in energy-efficient data center technologies, with Germany projected to grow at a 21.2% CAGR. The competitive landscape remains semi-consolidated, with key players including Delta Electronics, LITE-ON Technology, AcBel Polytech, FSP Group, Advanced Energy Industries, OmniOn Power, Shenzhen Megmeet Electrical, and Great Wall Power Technology. Industry innovation is focusing on high-efficiency architectures, liquid-cooling compatibility, Gallium Nitride (GaN) technologies, Silicon Carbide (SiC) power electronics, and smart power management systems.

For a comprehensive analysis of the market, including company benchmarking, pricing trends, and competitive intelligence, the full report is available from Fact.MR at https://www.factmr.com/connectus/sample?flag=S&rep_id=15138.

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