Analysis: Power semiconductor for datacenter power distribution

AIs shift to accelerator-centric computing drives datacenter power semiconductor revenue forecasts to $5B in 2026.

AI is shifting datacenters from CPU-centric to accelerator-centric computing, driving a step-change in power demand and infrastructure buildout. Using an xPU-driven model that translates processor shipments into rack demand and subsystem requirements, we forecast datacenter power semiconductor revenue reaching $5B in 2026 and growing at a 24.6% CAGR (2025–2031) to $14.3B. Rising rack power densities increase semiconductor content per rack, with the average Bill of Materials projected to climb from ~$2,300 in 2025 to ~$7,600 by 2031. Technology evolution is central to this outlook, including higher-power 48V-class architectures, the emergence of HVDC distribution from 2027, and accelerating adoption of SiC and GaN across power supplies, battery backup, and other emerging datacenter subsystems.