The increasing deployment of artificial intelligence (AI) in data centers is driving a significant transformation in power management strategies. AI workloads, particularly in high-performance computing (HPC) and generative AI, require immense computational power, leading to escalating power demands and heat generation. Point-of-load (PoL) converters play a critical role in optimizing power distribution within these data centers, ensuring efficiency, scalability, and thermal management. This insight explores the growing importance of PoL converters in AI data centers, their advantages, and the key trends shaping their adoption.
The Growing Power Demands of AI Data Centers
AI data centers are characterized by their high power densities, necessitated by massively parallel computing architectures such as graphics processing units (GPUs), tensor processing units (TPUs), and field-programmable gate arrays (FPGAs). These processors require highly efficient power conversion architectures to meet the stringent voltage regulation, transient response, and thermal management requirements.
As AI applications continue to expand, the power demand per rack is increasing, moving from traditional 20-30 kW levels to 70 kW and beyond. Some next-generation AI racks are expected to reach 135 kW, with future projections exceeding 400-500 kW. This unprecedented power demand necessitates highly efficient PoL power architectures to mitigate losses and improve overall system efficiency.
To discuss the latest market trends and insights
The Role of PoL Converters
PoL converters are DC-DC power regulators positioned close to the load, delivering precise voltage regulation with minimal conversion losses. They step down intermediate bus voltages (e.g., 48V) to lower levels required by processors, memory, and other components, reducing transmission losses and improving power density. Their primary advantages include:
1. Enhanced Energy Efficiency
PoL converters contribute to overall power efficiency by minimizing resistive losses during power transmission. As AI workloads scale, efficiency improvements translate into significant energy savings. Advances in wide-bandgap (WBG) semiconductor materials, such as Gallium Nitride (GaN) and Silicon Carbide (SiC), have further enhanced PoL converters, allowing them to operate at higher frequencies with lower losses.
For instance, PoL converters integrated with GaN transistors can achieve efficiency levels exceeding 96%, significantly reducing waste heat and improving overall system performance.
2. Improved Power Density
AI processors operate at low voltages but require extremely high currents—often exceeding 1,000 A per chip. PoL converters enable high power density by efficiently managing this power delivery without excessive losses. This capability is crucial in dense computing environments where space constraints demand compact and highly integrated power solutions.
PoL converters using advanced topologies such as multiphase buck converters allow for efficient current sharing and better thermal management, ensuring stable operation even under high computational loads.
3. Enhanced Thermal Management
Heat dissipation is a major challenge in AI data centers. Traditional power distribution architectures lead to increased heat buildup due to resistive losses. PoL converters mitigate this by reducing transmission distances and optimizing power conversion efficiency.
By integrating digital power management techniques, PoL converters can dynamically adjust their operation to match workload demands, reducing unnecessary power dissipation and improving thermal performance. Some advanced PoL modules incorporate vertical power delivery (VPD) architectures, where power is delivered directly to the processor through an optimized substrate, further reducing thermal bottlenecks.
Our brochure and sample reports highlighting the scope and coverage of our research solutions.
Key Trends Driving PoL Converter Adoption
Several technological trends are accelerating the adoption of PoL converters in AI data centers:
1. Transition to Higher Bus Voltages in Converters
To minimize conduction losses, data centers are shifting from traditional 12V power distribution systems to 48V or even 400V high-voltage DC (HVDC) architectures. This transition significantly reduces the current required for the same power level, enabling thinner and more efficient power distribution networks. PoL converters are essential in stepping down these high voltages to the precise levels required by AI processors and memory modules.
2. Integration of Digital Power Management
Digital power management technologies are increasingly being integrated into PoL converters, enabling real-time monitoring and adaptive power regulation. These digital controllers offer:
- dV/dt scaling for dynamic voltage adjustments based on workload demands
- Remote monitoring and predictive maintenance capabilities
- Adaptive frequency control for optimized efficiency under varying loads
Advanced PoL converters with digital power management have achieved peak efficiency improvements and reduced system losses compared to conventional solutions.
3. Adoption of WBG Semiconductors in PoL Converters
The adoption of GaN and SiC semiconductors in PoL converters is revolutionizing power distribution in AI data centers. These materials enable:
- Faster switching speeds, reducing energy losses and improving transient response
- Higher operating temperatures, allowing for more compact and thermally resilient designs
- Extended voltage ranges, supporting high-voltage DC distribution systems
New AI-optimized power supply units leveraging GaN and SiC technologies have demonstrated high efficiency levels, meeting the stringent power demands of next-generation AI and hyperscale data centers.
4. Vertical Power Delivery (VPD) and Integrated Voltage Regulators (IVRs)
Traditional lateral power distribution faces increasing limitations due to power density constraints. VPD and IVR technologies are emerging as alternatives, delivering power directly to the processor substrate, minimizing PDN (power distribution network) resistance, and improving conversion efficiency.
Some AI power delivery platforms employ VPD, eliminating bulky bypass capacitors and reducing power delivery losses, making them ideal solutions for AI data centers demanding compact, high-efficiency power delivery systems.
For our informative & insightful Newsletter “Power Bulletin”
Challenges and Future Outlook
Despite their advantages, PoL converters in AI data centers face several challenges:
- Thermal constraints: High-current delivery in dense AI racks generates significant heat, requiring advanced cooling solutions such as liquid cooling and direct-to-chip cooling.
- Scalability: As AI workloads grow, PoL architectures must scale efficiently without compromising reliability or efficiency.
- Cost considerations: The integration of advanced materials and digital management features increases initial costs, though long-term efficiency gains often justify the investment.
Looking ahead, AI-driven power management, predictive maintenance, and further advancements in WBG semiconductors will continue to shape the evolution of PoL converters in data centers. The push toward sustainability and energy-efficient AI computing will further accelerate the adoption of these advanced power conversion technologies.
Conclusion
Point-of-load converters are indispensable for AI data centers, offering enhanced efficiency, power density, and thermal management. As AI workloads continue to grow, PoL converters will play a crucial role in optimizing power distribution, minimizing losses, and ensuring reliable operation. By leveraging innovations such as digital power management, high-voltage bus architectures, and WBG semiconductor technologies, data centers can achieve significant energy savings and performance improvements, paving the way for the next generation of AI-driven computing.
About Wired and Wireless Technologies (WAWT)
WAWT (Wired and Wireless Technologies), a strategic technology analyst and consultancy firm, specializes in the wireless power and power supply industry. Its comprehensive research and reports on the power supply industry, titled “AC-DC and DC-DC Merchant Power Supply Market Report” and “External Power Adapters and Chargers Market Report”, offer critical market data, trends, insights, and market intelligence. It provides the latest market size estimates and forecasts for the power supply market, benefiting companies across the power supply ecosystem. The report analyses the market across various segments – by product; application sector (including servers, storage, networking, datacentres, telecom, medical, industrial, lighting, railways, etc); region; power class and others; and includes a detailed competitive analysis of power supply vendors looking at their market share. Furthermore, it ranks all profiles of power supply companies based on their revenues, across industry sectors, including datacentres.
WAWT‘s report is an invaluable resource for businesses seeking to understand the power supply landscape, make informed decisions, and stay competitive in this dynamic industry.
Feel free to contact our subject matter experts (SMEs) by emailing analyst@wawt.tech and following our LinkedIn page (WAWT) for the latest market trends, insights and updates on power supplies and allied technologies.