The shift towards the use of Wide Band Gap Semiconductors, higher power densities, and higher efficiency is rather driven by the cumulative but diverse demands of various applications of power supplies, but the recent boom of AI is steamrolling the technological attention of the industry towards itself. The magnitude of the scenario is a bit difficult to fathom. But just take a look at some data by the International Energy Agency– datacenter electricity consumption worldwide is expected to be over 1,000 TWh by 2026, with AI-related workloads contributing a major portion of that growth. In the US alone, data centers can account for as much as 8% of the country’s electricity by 2030, driven predominantly by the spread of generative AI. Furthermore, training large AI models can require as much as 1,200 megawatt-hours (MWh) per training cycle, a figure that continues to rise with each generational leap in AI capability.

These numbers highlight an important fact: power is not merely a logistical issue—it is the underlying limitation defining the future of AI infrastructure. Power supply units (PSUs), previously considered commoditized components, are now key to establishing the viability and scalability of AI data centers.

Power Availability: The Foundational Limitation

Availability of power is currently the top limiting factor in AI data center construction. Conventional racks that used 5 to 10 kilowatts (kW) are being replaced by high-density compute racks that require 30 to 100 kW, and in some cases, even higher. The outcome is a scale of energy demand that is beyond what many local grids can supply, leading to delays, site limitations, and increasing energy procurement costs.

From the system design standpoint, this limitation puts tremendous stress on each point in the power delivery chain—utility interconnection through point-of-load regulation. It is no longer feasible to have an after-the-fact approach to power provisioning. Power is not only the enabler and the limiter but also the competitive differentiator.

Rethinking PSU Capabilities: Density and Efficiency

PSUs are being forced to provide increased output within given form factors. In typical redundant power supply (CRPS) configurations, output levels are increasing from 2–3 kW to 8–12 kW, with high efficiency requirements. Providing such performance without adding volume or sacrificing reliability requires the use of advanced materials and topologies.

Wide bandgap semiconductors like gallium nitride (GaN) and silicon carbide (SiC) are now crucial for realizing the required switching speeds and thermal efficiencies. These devices can handle high-frequency operation, minimize power losses, and have low packaging, allowing designers to achieve power densities over 130 W/in³ without sacrificing >97% efficiency.

Efficiency standards are being codified into industry standards and regional legislation. Certification schemes like 80 PLUS—especially at the Titanium level—have become the standard for high-efficiency PSUs, requiring performance up to 96% at 50% load. In many jurisdictions, such performance has become a requirement through legislative requirements linked to environmental performance.

In the future, new regulatory landscapes will drive efficiency levels above 97%, requiring more comprehensive innovation in PSU structures, switch techniques, and system integration. This is no longer a choice but a necessity for compliance and competitiveness.

Distribution Architectures Are Evolving

As compute density rises, so does the demand for effective power distribution. Numerous AI data centers are moving away from 12V and 48V designs and adopting 400V DC distribution. This reduces current demands dramatically, eliminates I²R losses, and enables denser server deployment.

Future PSU designs will have to accommodate these changes, handling increased output voltages and allowing intermediate bus architectures that allow efficient voltage regulation near the load. Vertical power delivery (VPD) solutions—power modules placed underneath processors—are also becoming more popular, minimizing electrical paths and enhancing thermal performance.

Engineering a New Generation of Power Supply Solutions

To enable the scale and sophistication of AI infrastructure, PSUs will need to transform quickly and assertively. The future will be shaped by seven engineering imperatives:

 1. High Power Density Without Compromising Reliability

Compact, high-output PSUs demand architectural innovation. The passive components of transformers and inductors have to be redesigned based on planar topologies. Cooling techniques need to improve, possibly by the inclusion of liquid cooling or hybrid thermal architectures. Wide bandgap semiconductors will play a critical role in providing compact, thermally efficient, and electrically stable platforms.

2. Ultra-High Efficiency Conversion

Next-gen PSUs will need to provide >97% efficiency on a consistent basis, with peak efficiencies over 98%. This will be made possible by the use of advanced topologies—interleaved totem-pole PFC and resonant LLC converters—coupled with digital control systems that dynamically change switching patterns in real time for maximum performance under variable loads.

 3. Embedded Telemetry and Predictive Monitoring

PSUs will be smart systems unto themselves, with embedded processors and sensors to provide real-time feedback on temperature, voltage, load fluctuation, efficiency, and component health. This level of visibility supports predictive repair, fault detection, and adaptive energy management—a path to data-based infrastructure optimization.

4. Conformance to High-Voltage Architectures

As 400V DC is established as the norm for AI data center power distribution, PSUs need to adapt accordingly. This involves support for high-voltage backplanes, vertical power delivery support, and enhanced insulation and safety features to handle higher operating voltages.

5. Resilience Across Diverse Energy Sources

With numerous AI data centers using renewable power, onsite generation, and microgrids, PSUs will have to handle variable inputs, such as frequency deviations, voltage fluctuations, and brief interruptions. Future PSUs need to provide grid-agnostic performance, high switchover speed, and improved surge protection in order to handle hybrid power conditions.

6. Lifecycle Sustainability

Sustainability also goes beyond operational efficiency. The entire PSU life cycle, from materials choice and manufacturing through recyclability, must demonstrate environmental responsibility. Designs will increasingly be aimed at low-impact materials, disassembly for recycling, and embedded environmental reporting functionality.

7. Standardization and Interoperability

To speed deployment and lower operational complexity, PSU designs will have to conform to standard dimensions, communication protocols, and telemetry formats. This will make interoperability across platforms easier, reduce maintenance, and make procurement and supply chain management less complicated.

Conclusion

The surge in the prevalence of AI has also ignited a trend shift in the power supply industry. Above, we have tried to explore the specifics of the power demands of AI datacenters. This transformative phase is redefining what power supplies must deliver—not just in terms of watts and volts, but in intelligence, adaptability, and sustainability. AI workloads are pushing the boundaries of what was previously considered feasible in power infrastructure, turning PSUs into strategic assets that can shape the success of entire data center ecosystems.

As we look ahead, innovation in PSU architecture, materials, and monitoring will be key to unlocking scalable, efficient, and environmentally conscious AI infrastructure. The challenge is not just to keep up with the rising demand—but to anticipate it, design for it, and build systems that can evolve alongside AI’s relentless growth. In this AI-powered era, the future of datacenter power is no longer just technical—it’s pivotal.

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.