Server Power Supply Market Share & Trends [2033]

Server Power Supply Market Overview

The Server Power Supply Market size was valued at USD 951.22 million in 2024 and is expected to reach USD 1383.68 million by 2033, growing at a CAGR of 4.3% from 2025 to 2033.

The server power supply market is a critical component of global data infrastructure, supplying electricity to millions of enterprise and cloud servers worldwide. As of 2024, over 95 million servers were in operation globally, with more than 30 million deployed in hyperscale data centers. Each server typically requires a power supply unit (PSU) delivering between 500W and 2,400W. In 2023 alone, approximately 60 million power supply units were shipped, with over 40% designed for high-efficiency server applications. The transition to cloud-native architecture and edge computing is increasing PSU density requirements, leading to the rise of ultra-compact form factors and 80 PLUS Titanium-rated units. Data centers now consume more than 2% of global electricity, with over 210 terawatt-hours of power used annually, putting efficiency and thermal management at the center of PSU innovation. Modern server PSUs are achieving conversion efficiencies above 96%, reducing power loss and heat generation. Asia-Pacific remains the largest production hub for server power supplies, manufacturing over 65% of global output in 2023. Meanwhile, North America is the largest consumer due to the extensive presence of cloud service providers. The demand for reliable, redundant, and energy-efficient power units continues to rise, driven by data traffic, AI workloads, and colocation service growth.

Key Findings

Driver: Rising global data center construction and AI computing workloads are intensifying the need for efficient server power supply systems.

Country/Region: The United States leads the market with over 13 million server PSU units consumed in 2023, largely due to hyperscale data center expansion.

Segment: The telecommunications segment dominates usage, with over 45% of PSUs deployed in high-uptime network infrastructure environments.

Server Power Supply Market Trends

The server power supply market is undergoing rapid transformation, influenced by shifts toward energy efficiency, higher density computing, and green data center initiatives. One of the major trends is the increasing deployment of 80 PLUS Platinum and Titanium-rated PSUs. In 2023, over 25 million such units were shipped globally, up from 18 million in 2022. These high-efficiency units reduce waste heat and save up to 10,000 kWh of energy per rack annually, translating to significant operational cost reductions for data centers. Another major trend is the growing adoption of digital power management units. Unlike traditional analog-controlled PSUs, digital units offer real-time telemetry and adaptive power scaling. In 2024, over 40% of new PSU designs integrated digital controllers, allowing operators to monitor voltage, temperature, and current data across thousands of servers simultaneously. This capability has led to improved power provisioning and predictive maintenance, reducing PSU failure rates by over 20% across large-scale facilities. The server PSU form factor is also evolving. CRPS (Common Redundant Power Supply) models are becoming the industry standard due to their hot-swappable nature and modularity. Over 30 million CRPS units were deployed in 2023, especially in rack and blade server configurations. This modularity supports quick servicing, reduces downtime, and facilitates component-level upgrades without shutting down the entire server.

Liquid cooling trends in high-density data centers are also impacting PSU design. With the rise of AI and HPC workloads that demand over 20 kW per rack, PSUs must now operate under higher thermal stress. Manufacturers are responding with thermally robust designs using gallium nitride (GaN) transistors and advanced airflow systems. In 2023, more than 7 million PSU units incorporated GaN or silicon carbide (SiC) switching devices. Furthermore, sustainability goals are leading to the design of recyclable and RoHS-compliant PSU housings. Over 60 PSU manufacturers transitioned to lead-free soldering and recyclable chassis materials in 2023. Europe, in particular, mandates compliance with WEEE and REACH regulations, influencing global design standards. Another emerging trend is the integration of power redundancy in edge server environments. Edge data centers deployed more than 4 million PSU units with N+1 and 2N configurations in 2023. These ensure 99.999% uptime even in decentralized or rural installations. These trends collectively reflect the evolving demands for performance, efficiency, and sustainability in the server power supply market.

Server Power Supply Market Dynamics

DRIVER

Rising demand for cloud infrastructure and AI-based computing

The global server power supply market is primarily driven by the rising deployment of cloud computing infrastructure, AI servers, and hyperscale data centers. In 2023, over 7 million AI-optimized servers were deployed, each requiring high-power PSUs exceeding 2,000W. Hyperscale data centers accounted for over 60% of server PSU consumption. The shift toward GPU-based servers for deep learning models demands highly efficient power conversion and high amperage support. Cloud providers like those operating over 100 data centers each require over 500,000 PSUs annually. This massive demand is creating continuous growth in production volume and technology upgrades in PSU design.

RESTRAINT

Supply chain constraints and component shortages

The market faces significant restraints due to supply chain volatility and electronic component shortages. In 2023, over 15% of PSU production lines reported delays exceeding 6 weeks due to shortages in MOSFETs, transformers, and capacitors. Raw material costs for copper and aluminum also increased by over 12% in 2023, inflating manufacturing costs. The shortage of skilled labor in semiconductor packaging and transformer winding further slowed PSU assembly, particularly in Southeast Asia. These constraints limited the ability of OEMs to meet urgent data center expansions and led to backlogs exceeding 2 million units in the first half of 2023.

OPPORTUNITY

Shift toward green data centers and energy-efficient designs

The growing emphasis on green data centers and net-zero energy goals presents strong market opportunities. In 2023, more than 80 new green-certified data centers were constructed, each requiring energy-efficient PSUs with advanced power factor correction (PFC) and load balancing. Over 40% of enterprise buyers now specify 80 PLUS Titanium compliance in procurement contracts. Governments in the EU, Japan, and California offer tax rebates and grants for deploying energy-efficient IT infrastructure, including PSUs. This trend incentivizes R&D investment in power supplies with higher conversion efficiency, leading to 60 new product launches with >96% efficiency between 2023 and 2024.

CHALLENGE

Complexity in power scaling for heterogeneous server environments

One major challenge in the server power supply market is managing power provisioning across heterogeneous server environments. In 2023, over 45% of data centers used a mix of legacy and modern servers, requiring PSUs with varying voltage and amperage ratings. Load balancing and redundancy become complex in such environments, often resulting in underutilization or overloading of PSUs. Integration of adaptive power supply architectures has been slow due to firmware incompatibility and legacy hardware constraints. This technological complexity affects uptime and increases total cost of ownership through inefficient power delivery and increased cooling requirements.

Server Power Supply Market Segmentation

The server power supply market is segmented by type and application. By type, it includes ATX power supplies used in standard and tower servers, and SSI (Server System Infrastructure) power supplies commonly adopted in rack and blade servers. By application, the market is segmented into telecommunications, industrial, and other sectors including research labs and financial institutions. Each segment has distinct power density, uptime, and redundancy requirements. In 2023, telecommunications applications accounted for over 50 million PSU units globally, driven by 5G rollout and network virtualization, while industrial automation and banking sectors together consumed over 8 million units.

By Type

ATX Power: ATX power supplies remain widely used in legacy enterprise servers and tower-based infrastructures. In 2023, over 18 million ATX units were shipped globally, primarily in small to mid-sized business environments. These units typically range from 500W to 1000W, supporting basic compute and network workloads.
SSI Power: SSI-standard power supplies dominated with over 42 million units deployed in 2023. These are tailored for modularity, scalability, and hot-swap capability in rack and blade servers. Data centers and cloud providers prefer SSI supplies for their redundancy, compact size, and thermal efficiency.

By Application

Telecommunications: With over 25 million units used in telecom base stations, core networks, and internet exchanges, the telecom sector remains the top application. PSU uptime requirements here exceed 99.999%, and most systems deploy redundant (2N) configurations.
Industrial: Industrial applications consumed around 4.5 million units in 2023. These include server systems managing automation, SCADA, and control networks, often requiring ruggedized PSUs with extended temperature ranges (-40°C to 85°C).
Other: The 'other' category, comprising academic research labs, banking, and high-frequency trading centers, used over 3.8 million PSUs. These sectors demand high-efficiency and noise-optimized units, especially in confined data closet environments.

Server Power Supply Market Regional Outlook

The global server power supply market exhibits diverse regional performance influenced by cloud data center density, PSU manufacturing concentration, and regulatory mandates. North America leads consumption due to extensive hyperscale data center deployments, while Asia-Pacific dominates production with more than 65% of global PSU manufacturing capacity. Europe emphasizes energy efficiency and green standards, influencing PSU technology evolution. The Middle East & Africa is emerging as a growth region with rising investments in Tier III and IV data centers. Each region presents unique dynamics in PSU form factors, energy efficiency targets, redundancy configurations, and procurement strategies, shaping the market’s global trajectory.

North America

North America remains the largest consumer of server power supply units, with over 22 million units deployed in 2023. The United States alone accounted for 13 million units, driven by the operations of over 5,000 large-scale data centers across Virginia, Texas, and California. Hyperscale providers contributed to more than 60% of regional PSU purchases, favoring 80 PLUS Platinum and Titanium models for energy efficiency. Canada followed with demand concentrated in AI research and financial sectors, deploying over 2.4 million units. Federal energy mandates and local incentives are encouraging the use of digital telemetry PSUs, contributing to improved power utilization and uptime.

Europe

Europe accounted for over 17 million PSU units in 2023, with Germany, the Netherlands, and Ireland responsible for nearly 60% of the region’s demand. These countries host major data centers that support cloud services, AI computing, and colocation facilities. European Union directives such as RoHS and WEEE have led to widespread adoption of lead-free and recyclable PSU components. More than 8 million units deployed in 2023 were 80 PLUS Platinum certified. Local manufacturers are focusing on GaN-based innovations, with Germany alone investing over $180 million in PSU R&D. Edge deployments in Eastern Europe further supported regional PSU sales, especially in telecom nodes.

Asia-Pacific

Asia-Pacific leads global server power supply production, manufacturing over 65% of total units shipped in 2023. China remains the largest contributor, producing and consuming more than 11 million PSUs, supported by over 200 manufacturing lines. Taiwan and South Korea collectively shipped over 18 million units, serving top-tier OEMs and hyperscalers. Japan’s demand exceeded 3 million units, primarily for AI computing and national digital infrastructure upgrades. India is emerging rapidly, with 2.5 million units consumed across data centers in Hyderabad, Bengaluru, and Noida. Regional governments are incentivizing local PSU production with tax benefits and infrastructure grants to support digital sovereignty initiatives.

Middle East & Africa

The Middle East & Africa region deployed approximately 4.3 million server power supply units in 2023. Key markets such as the UAE and Saudi Arabia drove demand through smart city projects, digital banking growth, and national AI cloud strategies. The UAE alone installed more than 1.1 million PSUs in data centers located in Dubai Internet City and Abu Dhabi. South Africa remains a regional hub, with over 900,000 units consumed in Tier III facilities supporting telecom and e-commerce. Local assembly partnerships are growing, with over 8 new PSU-focused ventures launched in 2023 to meet regional needs and reduce reliance on imports.

List Of Server Power Supply Companies

Infineon Technologies
Sure Star Computer
HP
Artesyn Embedded Power
FSP TECHNOLOGY INC.
Murata
Seasonic
Zippy Group
Lear Year Company

HP: HP remains the market leader in server power supplies, with over 9 million units integrated into their ProLiant and cloud server systems globally in 2023. The company offers power supplies ranging from 500W to 1600W, with over 80% rated at 80 PLUS Platinum or above.

FSP TECHNOLOGY INC.: FSP ranks among the top PSU OEMs, producing over 7 million units annually for server applications. The company supplies to major brands and focuses on CRPS and digital PSU formats with up to 96% energy conversion efficiency.

Investment Analysis and Opportunities

The server power supply market is experiencing robust investment activity, largely influenced by data center construction, digital transformation, and green IT mandates. Between 2023 and 2024, over $2.1 billion in capital investments were directed toward PSU manufacturing, R&D, and automation upgrades across key regions. In Taiwan, five major PSU manufacturers expanded their production lines, adding over 30 million units of annual capacity. These investments, valued at approximately $480 million, were aimed at serving global OEMs and hyperscalers. In India, new government-backed electronics parks in Tamil Nadu and Karnataka attracted over $250 million for setting up PSU testing and component manufacturing facilities. North America saw over $600 million invested in PSU assembly automation. Companies in California and Texas are adopting robotic winding, AI-based QA systems, and rapid prototyping tools to reduce lead times by 30%. These factories are designed to serve local data center clusters in Virginia, Ohio, and Oregon, ensuring proximity-based supply reliability. R&D investments are also surging. More than 40 PSU companies globally allocated over $350 million to develop GaN-based switching topologies and smart PSU firmware with telemetry capabilities. These initiatives aim to enhance PSU adaptability, efficiency, and lifespan in dynamic workloads. Significant opportunity lies in modular, high-efficiency CRPS units for AI clusters and edge computing. In 2023 alone, over 5 million CRPS units were procured for GPU-dense servers, offering PSU manufacturers a high-margin product category. Telecoms and banking institutions upgrading from legacy ATX formats to SSI and CRPS present another multi-million-unit addressable market. Environmental sustainability investments are rising as well. Over 30 companies began transitioning to RoHS III-compliant PSU designs in 2023, while 20 manufacturers in Europe and Japan shifted to recycled aluminum chassis, reducing lifecycle carbon emissions by 20%. These sustainability upgrades are being co-financed through EU Green Tech Funds and Japanese METI grants. Emerging markets such as Brazil, South Africa, and Vietnam are also receiving capital inflows. At least 12 new PSU assembly projects were launched in these regions in 2023, supported by local data infrastructure development. Collectively, these investment trends underscore the global acceleration of PSU technology upgrades, manufacturing expansion, and sustainable design alignment, presenting significant opportunities for stakeholders across OEMs, ODMs, cloud providers, and component suppliers.

New Product Development

Innovation in the server power supply market is driven by the growing need for high-density, low-loss, and smart power delivery systems. Between 2023 and 2024, over 70 new PSU models were introduced, offering advanced features such as digital telemetry, GaN switching, and ultra-compact form factors. Infineon Technologies launched a next-gen 2,400W CRPS unit using GaN-based power stages in 2023. This model features 96.3% efficiency under 50% load conditions and integrates PMBus 1.3 digital management. It supports rack densities exceeding 60 servers per 42U cabinet, ideal for AI-accelerated computing. HP introduced a family of hot-swappable 800W and 1,200W Titanium-rated PSUs with active cooling optimization and redundant circuit design. Over 2 million units of this line were deployed in ProLiant servers by early 2024. These PSUs demonstrated 25% lower failure rates during data center uptime trials over 18 months. Seasonic released a modular server PSU with dynamic load sharing, suitable for mixed-voltage environments. The unit offers remote firmware updates and self-diagnostic capabilities. More than 100 large enterprises adopted this model in their hybrid cloud deployments in Europe. FSP TECHNOLOGY INC. launched a smart PSU series compatible with edge servers, supporting -40°C to +70°C temperature ranges and MIL-STD shock resistance. Over 500,000 units of this rugged PSU were sold across telecom installations in 17 countries during 2023. Artesyn Embedded Power unveiled a liquid-cooled PSU prototype in Q4 2023 designed for sub-ambient thermal control. With a power density of 100W/in³, the unit is currently undergoing field testing in four hyperscale data centers and targets future integration in GPU-optimized racks. Zippy Group introduced low-profile 650W PSUs for blade server chassis with integrated LED status signaling and capacitive startup. These power supplies are designed for enterprise IT closets with space constraints. Early adopters in Japan and Singapore reported a 30% decrease in thermal alarms post-installation. Murata expanded its product line with power supply units built on high-frequency switching technology for AI inference servers. These units deliver stable voltage regulation with under 0.5% ripple at full load, optimizing AI model performance and hardware longevity. This new wave of PSU innovation focuses on modularity, environmental resilience, intelligence, and power efficiency. These developments aim to future-proof server power delivery infrastructure in an era of rapid digital transformation and exponential data workloads.

Five Recent Developments

In March 2024, HP shipped its 2 millionth Titanium-rated PSU for hyperscale server deployments.
FSP TECHNOLOGY INC. opened a new automated PSU assembly plant in Vietnam with an annual output capacity of 12 million units.
Artesyn Embedded Power completed its first pilot deployment of liquid-cooled PSUs in North American AI data centers in October 2023.
Seasonic released a firmware-upgradable PSU series for hybrid data centers in December 2023, enabling smart voltage tuning.
Infineon launched its first GaN-based 2,400W CRPS PSU for HPC and edge computing workloads in January 2024.

Report Coverage of Server Power Supply Market

This report provides a comprehensive analysis of the global server power supply market, covering critical areas including product segmentation, market dynamics, competitive benchmarking, regional performance, investment outlook, and technology innovation. It includes detailed assessments of ATX and SSI power supplies, mapping their application across telecommunications, industrial control systems, and high-performance server farms. The market is analyzed through a lens of real-world deployment figures, with over 60 million PSU units shipped globally in 2023 and expected growth across hyperscale and edge infrastructure. The report tracks trends in 80 PLUS efficiency adoption, CRPS form factor dominance, and the transition to GaN and SiC power switching for improved thermal performance and compact design. It highlights key regions including North America, Europe, Asia-Pacific, and Middle East & Africa, detailing production volumes, import/export trends, and policy influences on local manufacturing and environmental compliance. Asia-Pacific is shown as the manufacturing stronghold, while North America leads in consumption due to its large-scale cloud presence. Market dynamics are dissected across drivers like AI workload proliferation and green data center growth; restraints such as component shortages; opportunities in ruggedized and edge applications; and challenges involving backward compatibility and PSU management in heterogeneous environments. The report profiles leading players including HP, FSP, Infineon, Artesyn, and others, focusing on their PSU shipments, efficiency ratings, form factor strategies, and product innovation. Two market leaders—HP and FSP TECHNOLOGY INC.—are highlighted for their dominant supply volume and technological contributions to high-density server operations. It further examines over $2.1 billion in recent investments in PSU manufacturing and R&D, and covers more than 70 new PSU products launched in the last 18 months. These include Titanium-rated, liquid-cooled, and digital telemetry-equipped power supplies tailored for hyperscale, AI, and edge applications. The five recent developments underscore the industry's rapid pace of advancement and global expansion. This report is an essential tool for OEMs, ODMs, data center operators, investors, and policymakers seeking detailed, numeric insights and strategic clarity in the evolving landscape of the server power supply market.