The global market for AI Power Supply Units (PSUs) is set to expand nearly ninefold over the next decade, surging from $698.3 million in 2026 to $6.3 billion by 2036, according to a new report from market research firm Fact.MR. The market, valued at $560.4 million in 2025, is forecast to grow at a compound annual growth rate (CAGR) of 24.6% during the forecast period, creating an absolute dollar opportunity of $5.6 billion.
The rapid growth is being fueled by the escalating demands of artificial intelligence workloads, including machine learning, high-performance computing (HPC), and generative AI, which require significantly higher power density than traditional computing environments. Hyperscalers, cloud providers, and enterprises are investing heavily in AI-ready infrastructure, driving the need 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 trends highlighted in the report include the dominance of multi-rail PSUs, which are expected to account for 62% of the market in 2026 due to their superior load balancing and reliability. PSUs with output ratings between 1,000W and 3,000W are projected to hold a 46% share, while hot-swappable units are expected to capture 43% of the market as operators seek uninterrupted operations. Air-cooled PSUs remain the dominant cooling technology, accounting for 58% of the market.
Geographically, North America remains the largest market, with the United States projected to grow at a 25.8% CAGR through 2036, driven by investments from major cloud providers. However, the fastest growth is occurring in Asia Pacific, where India is forecast to lead with a 28.9% CAGR and China at 27.6% CAGR, supported by government-backed AI initiatives and strong domestic manufacturing. Europe is also investing in energy-efficient data center technologies, with Germany expected to grow at a 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. Industry innovation is increasingly focused 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 PSUs are becoming a critical enabler of data center performance, energy efficiency, and operational reliability. The full report from Fact.MR offers detailed analysis of market sizing, company benchmarking, pricing trends, and competitive intelligence. For more information, visit Fact.MR.
