Power Electronics for Data Centers 2025

Key features

• Market forecast of the power supply unit split within three segmentations: data center types, server types and power range. For each, MUnit and $M are provided.
• Forecast for power devices market for PSU in Munits and $M with split according to technology and voltage level.
• Analysis of the 48-to-400 V transition and its impact on the market of power devices.
• Market trends in data centers industry and impact on other segments like UPS, renewable energy, etc. are discussed.
• Overview of the PSU supply chain and key players are shown.
• Deep insight into the technology trends aiming to improve efficiency are highlighted.
  

What's new

• Breakdown of the WBG adoption according to the PSU power range.
• Introduction of the power vs energy concerns in the data center context.
• Identification of the three PSU main form factors in the market.
• Update of the players market share.
• New standard appeared revealing new efficiency required.
• Supply chain reshaped due to Nvidia influence.
• IBC supply chain added.
• Emerging of the 400 V architecture leading to the off-rack servers.
• Higher power range inducing higher power density requirements.

Report's objectives

Yole Group has released this report, Power Electronics for Data Centers 2025, to provide deep insights about the of power electronics market forecast and technology trends for data center, from PSU, cooling, down to power devices and wafers.

The report’s main objectives are as follows:

• Analyze the market drivers and understand the dynamics of the datacenter market
• Provide an overview on synergies with other applications.
• Provide market metrics and forecasts for power converters, power devices and wafers for data centers
• Give an overview of the data center power electronics supply chain
• Review the latest news impacting the data center market
• Analyze the different business models and how do they evolve
• Furnish an analysis of main technology trends and their impact on power electronics
  

New power level triggers a new TAM for PSU with a CAGR24-30 of 15.5%

The PSU is one of the essential parts of the hardware in data center powertrain. There are three mainstream PSU standards having different specifications: ATX (Advanced Technology eXtended), CRPS (Common Redundant Power Supply) and Open Compute project (OCP). CRPS dominates across most segments due to flexibility and modularity. OCP is hyperscaler-centric, driven by scale and cost efficiency. Custom PSUs thrive in HPC, where standardization doesn’t meet extreme demands. ATX remains in legacy/low-power setup, but growth is declining. As of 2025, the total PSU market for data centers is estimated to worth more than $7B. Seeing the increasing demand for higher power required by PSU, the market value of PSU higher than 3 kW is expected to dominate the market (~80%) by 2030. Therefore, to meet efficiency and density requirements, wide Bandgap (WBG) semiconductors (i.e., GaN and SiC), are increasingly adopted. The CAGR24-30 market value of SiC and GaN devices will feature a double-digit growth.

Nvidia is influencing the power supply chain

On one hand, major PSU suppliers include Delta, Liteon, Huawei and Advanced Energy collectively holding over 60% market share. Therefore, Delta is not only the N°1 in PSU market share, but they have also secured a privileged position, working closely with Nvidia across almost the entire powertrain. On the other hand, Nvidia, as the leader in computing GPUs, is setting stringent requirements, leading to rapid adoption of technologies like liquid cooling and high-power PSUs. PSU makers are aligning with Nvidia’s power, thermal, and mechanical requirements (e.g., 5.5kW–33kW PSU, liquid-cooled racks).

AI is driving the adoption of new technologies

The architecture of future data centers is being completely rethought by industry giants to maximize efficiency. What was once considered a long-term design goal—such as DC power distribution—is now being actively pursued, with Meta and Microsoft planning deployments in the second half of 2026. In parallel, the 80 PLUS Ruby standard has emerged as the highest official PSU efficiency certification to date, requiring up to 96.5% efficiency at 50% load and 92% at full load. Introduced in January 2025, it was specifically designed to meet the demands of AI workloads. At the same time, the target of 100 W/in³, once considered a roadmap milestone, has already been achieved by several players. As a result, wide-bandgap adoption has become essential to meet both the rising power levels and new efficiency requirements. Rather than choosing between Si, GaN, or SiC, the new trend is to combine their strengths in a single architecture—commonly referred to as a hybrid design. 

 

About the author

Glossary

Report Objectives

Companies cited

What we got right, What we got wrong

Methodology & Definitions

Three-page summary

Executive summary

Context

Market forecasts   

• AI server – volume forecast 2020-2030
• 2020-2030 global PSU market forecast (in Munits and in $M) 
  
Split by data center type (Hyperscale, Enterprise, High Performance Computing)
Split by server type (computing, storage, network)
Split by power level (< 1 kW, 1 kW < x < 3 kW, > 3 kW)

• 2020-2030 global device market forecast (in Munits and in $M)

  Split by device type (Si, SiC, GaN)
  Split by voltage level (40 V, 100 V, 600 V)

• 2020-2030 global wafer market forecast (in Munits and in $M) 
  

Market trends 

• AI everything: Transition to a new era
• Forecast of power consumption worldwide
• It’s a matter of power not energy
• Myth of Electricity shortage ?
• PSU standards
• PSU Form Factor Adoption: Market Pyramid Perspective
• Estimated ASP per PSU
• What drives down the cost of data center PSUs?
• Synergy between data center and other power segments
• BESS to peak shaving
• Medium Voltage DC distribution in favor of data centers: ongoing project
• UPS: modularity trends
• Replacing UPS by BBU improves PUE

Supply chain

• Data Center global analysis
• Data center hardware, owner, services
• PSU is not the bottleneck!
• PSU & UPS supply chain mapping
• Main Suppliers of PSU for data centers: no European player
• Leaders of one step shop in data center
• Modularity goes in a favor of China
• Main passive manufacturers – Geographic regions
• Power components for PSU supply chain
• GaN players opportunity
• GaN players to supply IBC makers
• Who is powering the AI rack
• Players adopting WBG
• Estimated PSU market share for PSU in 2025
• GPU – NVIDIA Influence on the power supply chain
• Data center GPU and AI ASIC Established competitors
• Hardware for AI models
• Will Nvidia create “Tesla Effect” in GaN adoption?
• Everyone is looking to work with NVIDIA
• Mergers & acquisitions, key investments, and partnerships

Technology trends

• Trends at infrastructure level
• Three possible PSU configurations
• To increase Input voltage level: what is the new architecture? What bottleneck?
• DC evolution is the key enabler for 1 MW rack
• Solid State Transformer industry
• From UPS toward BBU
• Datacenter could be a business opportunity for charger players?
• PSU trends
• Targeting Beyond Titanium Standard: Ruby
• 3 kW to 5.5 kW power capacity in PSU
• Power density exceeding 100 W/in3
• Why will electrolytic capacitor remain a must in DC-link?
• Wide-band gap adoption in PSU for data centers
• GaN vs Sic race: toward hybrid approach
• 400 V SIC devices: what rationales behind?
• Embedded Die in POL: The invisible power supply
• Cooling
• Cooling: technology trade-off
• S-curve adoption of liquid cooling

Outlook – To be watched closely in the coming years

Appendix: Data Center PSU topologies

ABB, Advanced Energy, AIC, Airedale, Alibaba Group, Aramco, Arkema, Asperitas, AT&A, AWS, Bel Fuse Inc., BOC, Box Technology, Castrol, CEC Great Wall, Coilcraft, Compuware, CR Micro, CyrusOne, Dell, Delta Electronics, Diodes Inc., Dynapower, EAST, Eaton, EDF, Equinix, EPC, Flex, FSP, Fujitsu, Fuji Electric, GE Vernova, Gigabyte, Goaland, Google, Gospower, GRC, Hitachi, HP, Hewlett Packard Enterprise, Huawei, Immersion, Infineon, Ingeteam, Innovance, Innnoscience, Intel, iTeaQ, JQH, Kehua Tech, Kstar, Legrand, Lenovo, Liteon, Littelfuse, Liquid Cool Solution, Lubrizol, Megmeet, Meta, Micron, Microchip, Midas, Microsoft, Mitsubishi Electric, Murata, Navitas, Nexperia, Nichicon, Nvidia, Onsemi, OpenAI, Orange, Power Integration, PowerLeader, Renesas, Riello UPS, Rohm, Schneider Electric, Shanghai Shenglin M&E Technology Co., Socomec, Solum, STMicroelectronics, Submer, Supermicro, TDK, Tencent, Texas Instrument, Toshiba, TotalEnergies, Vertiv, Vishay, Wise Integration, Wolfspeed and more.