Power electronics at the forefront in transforming data center sustainability

Date: 25/10/2023
Yole reported the power device market for power supply units (PSUs) is experiencing a noteworthy compound annual growth rate (CAGR) of 7.8% from 2022 to 2028. Substantial growth can be attributed to the increasing adoption of PSUs with a 48 V output voltage, which deviates from the conventional 12 V standard. Yole finds the market size for PSUs is projected to expand from US$250 million in 2022 to US$392 million by 2028. This estimation underscores the positive trajectory and potential opportunities within this sector.

Hassan Cheaito Market and Technology Analyst at Yole Intelligence said that “The demand for digital infrastructure, particularly data center facilities, has seen a significant boost due to various factors like IoT, remote working setups, video streaming, and AI .”

Milan Rosina the Principal Analyst for the power electronics and battery division “To address the increasing power needs of new AI servers, it is expected that PSUs with a capacity exceeding 3 kW will experience the highest CAGR at 17.6%. This growth will translate into an increase from US$1.5 billion in 2022 to US$3.9 billion by 2028.”

The PSU market is experiencing significant growth, playing a crucial role in regulating server voltage. Projections suggest that by 2028, the market will reach a value of US$10.5 billion, with a compound annual growth rate of 6% between 2022 and 2028.

Improving the Power Usage Effectiveness(PUE) of data centers is crucial for reducing operational costs, decreasing energy usage, and aligning with environmental sustainability goals. Ongoing technological advancements are taking place in both the Power Supply Unit(PSU) sector and associated infrastructure. Manufacturers are striving to increase power capacity from 3 kW to 6 kW, while also boosting power density from 45 W/in³ to 100 W/in³ by utilizing Wide Bandgap(WBG) materials and raising the output voltage level from 12 V to 48 V.

Hyperscale data centers and HPC facilities are open to incorporating infrastructure modifications that enhance the Power Usage Effectiveness (PUE). For example, Battery Backup Units (BBU) can substitute upstream Uninterruptible Power Supply(UPS) at the rack level, while existing servers and racks can be retrofitted to accommodate liquid cooling instead of traditional air-cooling techniques. The implementation of DC power distribution presents energy-efficient benefits and serves as a feasible medium-term approach, particularly when DC standards and related equipment attain a higher level of maturity.

power electronics


power electronics


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Source: Yole