As per WAWT’s latest report titled ‘AC-DC and DC Merchant Power Supply Market -2025 Edition‘, the market for power supply for datacenter is expected to grow at a five-year CAGR of 8.3% in the next five years. This includes server, storage and networking segments of the datacenter market.

DataCenter Power Market Overview

The global datacenter industry is at the heart of digital transformation, supporting everything from cloud computing and artificial intelligence (AI) to 5G networks and IoT applications. These technologies demand higher performance, faster processing, and increased storage capacity, which in turn intensify the requirements for reliable and efficient power supplies.

Power supply systems in datacenters are more than just components that keep servers running. They are strategic assets that impact uptime, efficiency, sustainability, and operational costs. As businesses and governments worldwide set ambitious targets for digitalization and sustainability, the Datacenters power supply market is witnessing accelerated growth.

In this insight, we explore the market outlook, including growth drivers, challenges, segment insights, and opportunities shaping the future of Datacenters power supplies.

Datacenters Power Supply Market Growth

The Datacenters power supply market is forecast to expand significantly over the next five years. Several factors are fueling this growth:

• AI and High-Performance Computing (HPC): AI workloads and machine learning models require immense computing power. Power supplies must deliver high-density output with maximum efficiency to support GPU-intensive environments.
• Hyperscale Datacenters Expansion: Tech giants are investing in hyperscale facilities to meet global demand for cloud services. Each new Datacenters brings demand for thousands of high-efficiency AC-DC and DC-DC power supplies.
• Sustainability and Green Datacenters: With rising energy costs and regulatory pressure, operators are adopting eco-friendly power supply solutions with improved power conversion efficiency and reduced carbon footprints.
• Advanced Semiconductor Technologies: Innovations like Gallium Nitride (GaN) and Silicon Carbide (SiC) enable compact, high-efficiency power supplies that minimize energy loss and cooling requirements.

The market is also benefiting from the shift toward modular power architectures, which improve scalability and reduce downtime in mission-critical applications.

Market Challenges in the Datacenters Power Market

While opportunities are abundant, the market faces several challenges that stakeholders must address:

1. Rising Energy Consumption: Datacenters are among the largest consumers of electricity worldwide. Operators face increasing scrutiny to balance growing energy needs with sustainability goals.
2. Thermal Management: As rack density increases, power supplies must handle higher loads without overheating. Efficient thermal design remains a critical challenge.
3. Regulatory Compliance: Governments and regulatory bodies are implementing strict guidelines for energy efficiency, carbon reduction, and environmental standards, creating compliance challenges for vendors.
4. Supply Chain Disruptions: Shortages of semiconductors and critical components affect production timelines, creating uncertainty in availability and pricing.
5. Balancing Cost and Performance: Customers expect cost-effective solutions without compromising reliability, uptime, or efficiency—forcing vendors to innovate continuously.

Datacenters Power Supply Market Report Coverage

At Wired and Wireless Technologies (WAWT), we provide detailed analysis of the Datacenters power supply market through our flagship reports:

• AC-DC and DC-DC Merchant Power Supply Market Report
• External Power Adapters and Chargers Market Report

These reports deliver:

• Market size estimates and annual five-year forecasts for global and regional markets.
• Segmentation by product type, power class, technology, and application.
• Insights into servers, storage, networking, and hyperscale facilities.
• Competitive analysis of leading vendors and emerging players.
• Key market drivers, challenges, and opportunities shaping the sector.

Our research supports companies across the power supply ecosystem, enabling them to make informed strategic decisions.

Datacenters Power Supply Market Outlook: Key Drivers, Challenges, and Opportunities

The Datacenters power supply market is segmented by several key parameters:

• By Product: Includes AC-DC power supplies, DC-DC converters, uninterruptible power supply (UPS) systems, and rack power distribution units (PDUs).
• By Application: Spans servers, storage systems, networking equipment, colocation facilities, hyperscale cloud platforms, and AI-driven datacenters.
• By Power Class: Ranges from low-power supplies for edge computing nodes to high-power solutions for hyperscale environments.
• By Technology: Transition from traditional silicon-based solutions to next-generation GaN and SiC devices that deliver higher efficiency and compact designs.

This segmentation allows stakeholders to target growth opportunities effectively within specific product or application categories.

Datacenters Power Supply Market Regional Insight

Regional analysis highlights varying dynamics across markets:

• North America: Leads the market, driven by hyperscale operators such as AWS, Microsoft, Google, and Meta. The U.S. continues to see strong investment in cloud infrastructure and AI datacenters.
• Europe: Prioritizes sustainability and green energy adoption, with countries like Germany, the Netherlands, and Ireland hosting major hyperscale hubs. Energy efficiency regulations drive demand for innovative power solutions.
• Asia-Pacific: The fastest-growing region, led by China, India, and Southeast Asia. Rapid digitalization, 5G deployment, and e-commerce growth are spurring massive Datacenters investments.
• Middle East & Africa: Emerging growth opportunities are driven by investments in edge computing and regional cloud hubs.

Datacenters Power Supply Market by Region

• North America: Innovation-driven, with strong focus on AI and cloud.
• Europe: Sustainability-centric, integrating renewable energy with Datacenters operations.
• Asia-Pacific: Rapid adoption, large-scale infrastructure investments.
• Middle East & Africa: Emerging region with potential for edge Datacenters growth.

About WAWT

Wired and Wireless Technologies (WAWT) is a strategic technology analyst and consultancy firm specializing in power supply and wireless power markets. Our expertise spans across AC-DC, DC-DC, and wireless charging solutions, delivering critical market data, insights, and competitive intelligence.

Our AC-DC and DC-DC Merchant Power Supply Market Report and External Power Adapters and Chargers Market Report, provides the latest market size estimates and five-year forecasts. These insights help businesses across servers, storage, networking, telecom, medical, industrial, lighting, railways, and datacenters to align strategies with market trends.

Request our brochure and sample reports today to explore how WAWT can help your business gain a competitive edge in the power supply industry.

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