The global AI Power Supply Units (AI PSU) market is set to expand rapidly as artificial intelligence workloads transform data center infrastructure. According to a new report from Fact.MR, the market, valued at $560.4 million in 2025, is projected to grow from $698.3 million in 2026 to $6.3 billion by 2036, registering a compound annual growth rate (CAGR) of 24.6%. The industry is expected to create an absolute dollar opportunity of $5.6 billion, expanding nearly ninefold between 2026 and 2036 as enterprises, hyperscalers, and cloud providers invest heavily in AI-ready infrastructure.
The growing adoption of artificial intelligence, machine learning, high-performance computing (HPC), and generative AI applications is significantly increasing power density requirements across modern data centers. As a result, demand for high-efficiency, high-wattage power supply units capable of supporting advanced GPU clusters and AI servers is accelerating worldwide.
“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 expected to account for 62% of market share in 2026, while 1,000W–3,000W PSUs will hold 46% share by output rating. Hot-swappable PSUs are projected to capture 43% share, and air-cooled PSUs remain dominant with 58% market share. Regionally, 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. Germany is expected to grow at a 21.2% CAGR during the forecast period.
The AI infrastructure boom is fueling demand for advanced power delivery systems. Multi-rail PSUs are gaining adoption for 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.
North America remains the largest market, supported by investments from major cloud providers and AI infrastructure developers. In Asia Pacific, rapid digital transformation and data center investments are driving exceptional growth. India is forecast to register the highest growth rate globally at 28.9% CAGR, while China is expected to grow at 27.6% CAGR, supported by government-backed AI initiatives and strong domestic manufacturing capabilities.
The competitive landscape remains semi-consolidated, with leading manufacturers focusing on efficiency, power density, thermal management, and OEM partnerships. Key companies 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. 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.
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 here.
