The global market for AI Power Supply Units (PSUs) is poised for explosive growth, with a new report from Fact.MR projecting it will reach $6.3 billion by 2036. Valued at $560.4 million in 2025, the market is expected to expand at a compound annual growth rate (CAGR) of 24.6% from 2026 to 2036, creating an absolute dollar opportunity of $5.6 billion as enterprises, hyperscalers, and cloud providers invest heavily in AI-ready infrastructure.
The surge is driven by the growing adoption of artificial intelligence, machine learning, high-performance computing (HPC), and generative AI applications, which are 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."
According to the report, multi-rail PSUs are expected to account for 62% of the market share in 2026, offering superior load balancing and reliability for high-density AI 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 and simplified maintenance. Air-cooled PSUs remain dominant with 58% market share, but liquid-cooling compatibility is becoming increasingly important.
Regionally, North America remains the largest market, supported by investments from major cloud providers and AI infrastructure developers. The United States is projected to expand at a 25.8% CAGR through 2036. 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. Europe continues to invest in energy-efficient data center technologies, with Germany projected to grow at 21.2% CAGR during the forecast period.
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, LITE-ON Technology, AcBel Polytech, FSP Group, Advanced Energy Industries, OmniOn Power, Shenzhen Megmeet Electrical, and Great Wall Power Technology. 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 at Fact.MR.
