Datacenter and Server Power Supplies Market, Global Outlook and Forecast 2025-2032

MARKET INSIGHTS

Global datacenter and server power supplies market size was valued at USD 1,296 million in 2024. The market is projected to grow from USD 1,344 million in 2025 to USD 1,744 million by 2032, exhibiting a CAGR of 4.4% during the forecast period.

Datacenter and server power supplies are critical hardware components that convert and regulate electrical power for computing infrastructure. These systems ensure stable voltage delivery to servers through specialized connectors, with redundant configurations preventing downtime through failover capabilities. The market primarily consists of open frame, single, and redundant power supply units, each serving different reliability requirements.

Market growth is being driven by escalating demand for cloud computing infrastructure and AI workloads, which require increasingly efficient power solutions. However, the industry faces challenges including rising energy costs and sustainability pressures, pushing vendors to develop innovations like 80 PLUS Titanium certified units achieving 96% efficiency. Leading manufacturers such as Delta Electronics and Lite-On Technology are investing in modular designs and intelligent power management systems to address these demands, while the telecommunications sector emerges as the fastest-growing application segment.

MARKET DYNAMICS

MARKET DRIVERS

Exponential Growth in Cloud Computing and Hyperscale Data Centers Driving Market Expansion

The global datacenter industry is undergoing massive transformation fueled by the rapid adoption of cloud services and hyperscale infrastructure. Hyperscale operators are expected to increase their capacity by over 45% annually through 2026, directly translating into higher demand for reliable power solutions. These facilities typically deploy thousands of servers with redundant power configurations, significantly driving unit shipments. The shift towards cloud-native architectures and distributed computing models is creating unprecedented demand for power supplies that can handle dynamic workloads while maintaining 99.999% uptime standards.

Stringent Efficiency Regulations Accelerating Adoption of Advanced Power Solutions

Global initiatives to reduce datacenter energy consumption are compelling operators to upgrade legacy power infrastructure. Modern 80 Plus Titanium-certified power supplies achieve >94% efficiency at 50% load, representing up to 30% energy savings compared to older models. Regulatory frameworks like the EU Code of Conduct for Data Centres and Energy Star certifications are creating strong economic incentives for adoption. Many leading operators now require power supplies with minimum Platinum efficiency ratings across all new deployments, establishing this as a baseline industry standard.

The confluence of sustainability goals and total cost of ownership considerations is creating a perfect storm for high-efficiency power supply adoption. Some hyperscalers report achieving payback periods under three years when upgrading to next-generation power solutions, factoring in both energy savings and reduced cooling requirements.

MARKET RESTRAINTS

Supply Chain Disruptions and Component Shortages Constraining Market Growth

The industry continues facing challenges from ongoing semiconductor shortages and logistics bottlenecks. Critical components like power MOSFETs and high-capacity capacitors have seen lead times extend beyond 52 weeks in some cases, creating production challenges for power supply manufacturers. The situation is particularly acute for server-grade power supplies that require specialized components meeting stringent reliability specifications. While some recovery has been observed in general electronics supply chains, the specialized nature of datacenter power components continues experiencing constraints.

High Capital Costs of Redundant Power Architectures Limiting SME Adoption

While hyperscalers and large enterprises readily invest in N+1 or 2N redundant power configurations, the additional 25-40% cost premium poses significant barriers for smaller operators. Many colocation providers report that mid-market customers frequently opt for single power supply configurations despite the reliability risks, prioritizing upfront cost savings over operational resilience. This creates a bifurcated market where adoption of advanced power solutions remains concentrated among top-tier operators with deeper capital reserves.

MARKET OPPORTUNITIES

Emerging Liquid Cooling Technologies Creating New Power Delivery Paradigms

The rapid adoption of liquid cooling solutions presents transformative opportunities for power supply innovation. Immersion-cooled servers enable novel power delivery approaches that eliminate traditional AC-DC conversion losses, potentially improving system-level efficiency by up to 18%. Leading hyperscalers are actively testing direct current distribution systems that integrate power supplies with cooling infrastructure, creating opportunities for suppliers who can deliver holistic thermal-power solutions.

AI Workloads Driving Demand for High-Density Power Solutions

The explosive growth of AI infrastructure is creating demand for power supplies capable of supporting GPU-dense server configurations. Next-generation AI servers frequently require 3-5kW power units compared to traditional 1-2kW configurations, representing both a technical challenge and market opportunity. Suppliers developing compact, high-efficiency power solutions for these applications stand to capture significant value as AI deployment scales globally across cloud and enterprise environments.

MARKET CHALLENGES

Thermal Management Constraints in High-Density Deployments

Increasing power density in modern racks creates significant thermal challenges for power supply units. While server components are moving towards liquid cooling solutions, most power supplies still rely on air cooling, creating thermal bottlenecks in high-density deployments. Operating at elevated temperatures can reduce component lifespan by up to 30%, forcing difficult tradeoffs between power density and reliability. Manufacturers are challenged to develop cooling solutions that maintain acceptable operating temperatures without compromising efficiency or acoustics.

Standardization Fragmentation Across Regions and Verticals

The market faces ongoing challenges from competing standards and regional requirements. While 208V three-phase power dominates North American hyperscale facilities, European operators predominantly use 230V single-phase, and Asian markets show even greater variation. This fragmentation requires manufacturers to maintain extensive product portfolios and complicates inventory management. The lack of universal standards for modular power supply interfaces and form factors further compounds these challenges, limiting economies of scale.

Segment Analysis:

By Type

Redundant Power Supply Segment Dominates Due to High Reliability and Downtime Prevention

The market is segmented based on type into:

• Open Frame Power Supply

• Single Power Supply

• Redundant Power Supply

By Application

Internet Industry Segment Leads with Expanding Cloud Infrastructure Requirements

The market is segmented based on application into:

• Internet Industry

• Government

• Telecommunications

• Financial

• Manufacture

By Power Rating

High Power (>1000W) Segment Growing for Large-scale Data Center Deployments

The market is segmented based on power rating into:

• Below 500W

• 500-1000W

• Above 1000W

By Form Factor

Modular Power Supplies Gaining Preference for Flexible Configuration

The market is segmented based on form factor into:

• Non-modular

• Semi-modular

• Full-modular

COMPETITIVE LANDSCAPE

Key Industry Players

Technological Innovation and Strategic Partnerships Drive Market Competition

The global datacenter and server power supplies market exhibits a consolidated competitive landscape dominated by major players with strong technological expertise and global distribution networks. Delta Electronics leads the market with an estimated 22% revenue share in 2024, owing to its comprehensive portfolio of high-efficiency power solutions and strategic partnerships with hyperscale data center operators.

Lite-On Technology and Artesyn Embedded Technologies have emerged as significant competitors, collectively holding about 28% of the market share. Their growth is propelled by continuous R&D investments in energy-efficient power conversion technologies and expansion into emerging Asian markets where data center construction is accelerating.

The market has witnessed increased competition from Chinese manufacturers like Greatwall and Shenzhen Honor Electronic, who are gaining traction through cost-competitive solutions for mid-tier data centers. Meanwhile, established players such as Murata Power Solutions and Bel Fuse are focusing on high-margin specialized power supplies for mission-critical applications.

Recent industry developments include Delta's introduction of 94% efficiency titanium-level power supplies and Artesyn's expansion of its 3kW redundant power supply series. These innovations reflect the industry's shift towards higher power densities and improved energy management capabilities to meet evolving data center requirements.

List of Key Datacenter and Server Power Supply Companies Profiled

• Delta Electronics Inc. (Taiwan)

• Lite-On Technology Corp. (Taiwan)

• Artesyn Embedded Technologies (U.S.)

• Chicony Power Technology (Taiwan)

• Greatwall Technology (China)

• Acbel Polytech Inc. (Taiwan)

• Murata Power Solutions (Japan)

• Bel Fuse Inc. (U.S.)

• FSP Group (Taiwan)

• Enhance Electronics (China)

• ZIPPY TECHNOLOGY (Taiwan)

• Sure Star Computer (China)

• Shenzhen Honor Electronic (China)

• Gospower (China)

DATACENTER AND SERVER POWER SUPPLIES MARKET TRENDS

Advancements in Energy Efficiency to Redefine Power Supply Standards

The global datacenter and server power supplies market is experiencing a significant shift toward energy-efficient solutions, driven by both environmental concerns and operational cost savings. Titanium-level efficiency power supplies, which operate at over 96% efficiency, are becoming the industry standard as businesses seek to minimize power loss and reduce cooling requirements. This trend is accelerated by hyperscale datacenters, which account for nearly 40% of total datacenter power consumption globally. Furthermore, new innovations in wide-bandgap semiconductors (SiC and GaN) are enabling power supplies to achieve higher energy density while reducing component size by up to 50%, making them ideal for space-constrained server environments.

Other Trends

Modular and Scalable Power Architectures

The growing demand for flexible infrastructure is pushing manufacturers toward modular power supply designs that allow for hot-swappable components and capacity adjustments without service interruption. Major cloud service providers are increasingly adopting rackscale power distribution architectures, where power conversion happens at the rack level rather than within individual servers, improving overall efficiency by 5-8%. This shift is particularly evident in edge computing deployments, where power supply reliability directly impacts service availability for latency-sensitive applications.

Intelligent Power Management Integration

Modern datacenter power supplies are evolving into smart power nodes equipped with real-time monitoring capabilities through Power Management Bus (PMBus) interfaces. These systems now incorporate machine learning algorithms that predict power demand patterns and optimize energy distribution across server racks, potentially reducing power consumption by 10-15% in dynamic workloads. Additionally, the integration of digital power controllers allows for remote firmware updates and predictive maintenance features, which has become crucial as datacenter operators aim to minimize unplanned downtime that costs an estimated $9,000 per minute for enterprise facilities.

Regional Analysis: Datacenter and Server Power Supplies Market

North America
The North American market leads in innovation and adoption of high-efficiency power supplies, driven by the concentration of hyperscale data centers and stringent energy efficiency standards. The U.S. accounts for over 60% of regional demand, with major cloud service providers investing heavily in power infrastructure. 80 Plus certification has become a baseline requirement, with Titanium-grade power supplies gaining traction. However, supply chain disruptions and component shortages temporarily impacted production in 2022-2023. The region also sees increasing demand for lithium-ion battery backup systems as alternatives to traditional UPS solutions, particularly in California where diesel generator restrictions are tightening.

Europe
Europe's market is characterized by strong regulatory pressures for energy efficiency (EU Code of Conduct for Data Centers) and growing emphasis on circular economy principles in power supply manufacturing. The Nordic countries excel in green data center deployments, leveraging hydro and wind power, which creates unique requirements for power supply compatibility with renewable energy sources. Germany and the UK remain the largest markets, though Brexit has introduced some component sourcing challenges. The region is pioneering transformerless power supply designs to improve efficiency, though higher costs limit mainstream adoption. Recent EU taxonomy regulations are accelerating the phase-out of less efficient power units across the industry.

Asia-Pacific
APAC presents the fastest-growing market, projected to surpass North America in power supply unit shipments by 2026. China dominates with 45% regional share, driven by massive data center expansions from Alibaba, Tencent, and government-backed digital infrastructure projects. Cost-conscious procurement remains prevalent, though Tier IV data centers are adopting redundant power configurations. Japan maintains premium positioning with focus on high-reliability units for earthquake-prone areas, while Southeast Asian markets show increasing demand for modular power solutions. India's market is constrained by inconsistent power quality, creating demand for robust voltage regulation capabilities in server power supplies.

South America
The region shows steady but slower growth, with Brazil accounting for nearly 60% of the market. Economic instability has led some operators to extend server refresh cycles, impacting power supply replacement rates. Local manufacturing remains limited, with most units imported from Asia. However, new submarine cable projects connecting to the U.S. and Europe are driving some hyperscale investments, particularly in Chile and Argentina. Power reliability challenges have made redundant power supplies virtually mandatory for enterprise data centers throughout the region, though adoption in smaller facilities lags due to budget constraints.

Middle East & Africa
MEA represents an emerging market with Saudi Arabia, UAE, and South Africa as primary growth hubs. Large-scale smart city initiatives like NEOM are driving demand for modular, scalable power solutions. The hot climate necessitates power supplies with enhanced cooling capabilities, creating opportunities for liquid-cooled units. Africa faces infrastructure challenges that limit market growth, though mobile money services are driving small-scale data center deployments. The region is gradually shifting from basic single power supplies to redundant configurations, particularly in the Gulf States where data sovereignty regulations are boosting local data center construction.

Report Scope

This market research report offers a holistic overview of global and regional markets for the forecast period 2025–2032. It presents accurate and actionable insights based on a blend of primary and secondary research.

Key Coverage Areas:

• ✅ Market Overview

  • Global and regional market size (historical & forecast)

  • Growth trends and value/volume projections

• ✅ Segmentation Analysis

  • By product type or category

  • By application or usage area

  • By end-user industry

  • By distribution channel (if applicable)

• ✅ Regional Insights

  • North America, Europe, Asia-Pacific, Latin America, Middle East & Africa

  • Country-level data for key markets

• ✅ Competitive Landscape

  • Company profiles and market share analysis

  • Key strategies: M&A, partnerships, expansions

  • Product portfolio and pricing strategies

• ✅ Technology & Innovation

  • Emerging technologies and R&D trends

  • Automation, digitalization, sustainability initiatives

  • Impact of AI, IoT, or other disruptors (where applicable)

• ✅ Market Dynamics

  • Key drivers supporting market growth

  • Restraints and potential risk factors

  • Supply chain trends and challenges

• ✅ Opportunities & Recommendations

  • High-growth segments

  • Investment hotspots

  • Strategic suggestions for stakeholders

• ✅ Stakeholder Insights

  • Target audience includes manufacturers, suppliers, distributors, investors, regulators, and policymakers

FREQUENTLY ASKED QUESTIONS:

What is the current market size of Global Datacenter and Server Power Supplies Market?

-> The global datacenter and server power supplies market was valued at USD 1,296 million in 2024 and is projected to reach USD 1,744 million by 2032 at a CAGR of 4.4%.

Which key companies operate in Global Datacenter and Server Power Supplies Market?

-> Key players include Delta, Lite-On, Chicony, Artesyn, Murata Power Solutions, FSP, and Bel Fuse, among others.

What are the key growth drivers?

-> Key growth drivers include rising demand for cloud computing, AI infrastructure expansion, and increasing data center construction activities globally.

Which region dominates the market?

-> North America holds the largest market share, while Asia-Pacific is the fastest-growing region due to rapid digital transformation.

What are the emerging trends?

-> Emerging trends include high-efficiency power supplies (80 Plus Titanium), liquid cooling integration, and intelligent power management systems.