AI Power Supply Unit Market to Reach $6.3 Billion by 2036 as Hyperscale Data Centers Surge
The global AI PSU market is projected to grow from $698 million in 2026 to $6.3 billion by 2036, driven by hyperscale data center expansion and rising GPU deployments, with multi-rail and high-wattage units leading demand.
The global market for AI power supply units (PSUs) is set for explosive growth, with projections indicating it will reach $6.3 billion by 2036, according to a new report from Fact.MR. The market, valued at $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 $5.6 billion. This nearly ninefold expansion underscores the critical role of power infrastructure in supporting the rapid deployment of artificial intelligence workloads.
The surge is driven by the massive investments in hyperscale data centers and cloud computing infrastructure, which require high-efficiency, high-wattage power supplies to support advanced GPU clusters and AI servers. As enterprises, hyperscalers, and cloud providers race to build AI-ready infrastructure, power density requirements are escalating, making PSUs a linchpin of next-generation digital infrastructure. “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.”
Key trends shaping the market include the dominance of multi-rail PSUs, which are expected to account for 62% of the market share in 2026 due to their superior load balancing and safety in high-density environments. PSUs with output ratings between 1,000W and 3,000W are projected to hold 46% share, while hot-swappable PSUs are expected to capture 43% share as operators prioritize uninterrupted operations. Air-cooled PSUs remain prevalent, holding 58% of the market, though liquid-cooling compatibility is gaining traction.
Geographically, North America remains the largest market, with the United States projected to expand at a 25.8% CAGR through 2036, driven by investments from major cloud providers. However, the fastest growth is occurring in Asia Pacific. India is forecast to register the highest global growth rate at 28.9% CAGR, while China is expected to grow at 27.6% CAGR, supported by government-backed AI initiatives and strong domestic manufacturing. Europe is also investing heavily in energy-efficient data center technologies, with Germany projected to grow at 21.2% CAGR.
The competitive landscape is 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. Innovation is increasingly focused on high-efficiency architectures, Gallium Nitride (GaN) and Silicon Carbide (SiC) power electronics, and smart power management systems. For more detailed analysis, the full report is available from Fact.MR.