Wide Bandgap Material Data Center Power Supply Market - Global Forecast 2026-2032

The Wide Bandgap Material Data Center Power Supply Market size was estimated at USD 2.76 billion in 2025 and expected to reach USD 3.11 billion in 2026, at a CAGR of 12.18% to reach USD 6.18 billion by 2032.

As data centers evolve to support surging demands from artificial intelligence, high-performance computing and hyperscale applications, efficiency in power delivery has become paramount. Traditional silicon-based converters, long the industry standard, are increasingly challenged by the need for higher switching frequencies and superior thermal management. Wide bandgap materials such as gallium nitride (GaN) and silicon carbide (SiC) have emerged to overcome these constraints, offering higher breakdown voltages, faster switching speeds and reduced conduction losses compared to silicon counterparts. This shift not only drives significant improvements in power conversion efficiency but also reduces the physical footprint and cooling requirements of power supply units, laying a robust foundation for next-generation infrastructure in hyperscale data centers Â

Innovation leaders have already introduced power supply designs leveraging GaN and SiC to push efficiency beyond 98 percent, exemplified by an 8.5 kilowatt artificial intelligence–optimized unit that achieves unprecedented performance through interleaved power factor correction and resonant topologies. By harnessing high-power GaN and Gen-3 SiC MOSFETs in tandem, designers are reducing component counts and electromagnetic interference, all while improving thermal resilience. These breakthroughs demonstrate the transformative potential of wide bandgap materials to reshape the power delivery landscape for data center operators who prioritize both performance and sustainability Â

The landscape of data center power delivery is undergoing rapid transformation driven by both technological advances and architectural reimagining. Hard switching topologies in complementary and single-ended configurations are being supplanted by soft switching approaches that exploit phase-shifted, quasi-resonant and resonant techniques to minimize switching losses and electromagnetic interference. These design innovations have enabled devices to operate at higher frequencies and temperatures without compromising reliability, thereby unlocking higher power densities and more compact power supply footprints.

Concurrently, regulatory drivers such as global efficiency standards and sustainability mandates are intensifying the focus on total cost of ownership and lifecycle carbon emissions. Data center operators are increasingly adopting wide bandgap–based power modules to achieve 80 Plus Titanium and Platinum certifications, thresholds once deemed unattainable with silicon designs. In parallel, system architects are shifting toward three-phase interleaved front-end converters and two-level DC–DC stages to harmonize scalability, redundancy and energy efficiency. These converging forces signify a paradigm shift in which GaN and SiC stand at the heart of next-generation power delivery ecosystems Â

United States trade policy has imposed a series of tariff measures that cumulatively affect the cost and supply chain dynamics of wide bandgap power devices. On January 1, 2025, tariffs on semiconductors classified under HTS headings 8541 and 8542 were increased from 25 percent to 50 percent, substantially raising the landed cost of GaN and SiC discrete components and modules. This significant duty hike incentivizes manufacturers to evaluate alternative sourcing strategies, including nearshoring and onshore production, to mitigate exposure to elevated import costs Â

In addition to Section 301 actions, reciprocal tariffs of 10 percent on all imports from specifically named countries took effect in early April 2025 under a separate executive order, further complicating supply agreements for power semiconductor distributors and OEMs. These reciprocal measures include exclusions and phased implementations, yet residual uncertainties persist as operators navigate fluctuating duty rates and exclusion processes administered by U.S. Customs and Border Protection Â

Moreover, in April 2025 the Commerce Department launched a Section 232 investigation into semiconductor imports, with the potential to levy new duties of up to 25 percent on strategic technology products. Although final determinations remain pending, the prospect of additional tariffs underscores the need for proactive supply chain resilience strategies. Collectively, these policy shifts drive U.S. stakeholders toward vertically integrated sourcing models and collaborative partnerships that enhance cost predictability and long-term supply security Â

In examining the market through the lens of material selection, it becomes evident that gallium nitride and silicon carbide each deliver unique advantages. Gallium nitride offers exceptional electron mobility and fast switching capabilities ideal for high-frequency converter stages, whereas silicon carbide grants superior thermal conductivity and robustness at elevated voltages, making it indispensable for power factor correction and DC–DC front ends.

Topology segmentation reveals that hard switching approaches, whether in complementary or single-ended architectures, remain relevant for cost-sensitive applications, yet soft switching designs leveraging phase-shifted, quasi-resonant and resonant frameworks are gaining traction where efficiency and EMI performance are critical. Component type distinctions underscore the diversity of device form factors, spanning discrete diodes to integrated power modules and high-voltage transistors, each fulfilling specific roles within multi-stage power systems.

Power rating segmentation further highlights divergent needs across high-power over 10Â kilowatts scenarios requiring advanced thermal management, medium-power ranges between five and ten kilowatts balancing density and cost, and low-power under five kilowatts where form factor and efficiency per watt are prioritized. Finally, application segmentation spanning inverters, rectifiers and uninterruptible power supplies illuminates the spectrum of deployment contexts, from grid-interactive front ends through to mission-critical backup systems.

Demand patterns across the Americas underscore the United States as a mature market where early adopters have driven wide bandgap integration in hyperscale facilities and colocation deployments, leveraging domestic investments in semiconductor manufacturing to reduce geopolitical risks. Canada and Latin America, while smaller in scale, show growing interest in energy-efficient power solutions tied to sustainability targets and renewable energy integration.

In Europe, Middle East & Africa, regulatory imperatives such as the European Ecodesign Directive and regional energy performance standards have accelerated adoption of silicon carbide modules in data center front ends and microgrid-supported backup systems. Market participants in EMEA are aligning with local content preferences and benefit from government incentives aimed at bolstering semiconductor fabrication capacity, further strengthening supply security and innovation ecosystems.

Asia-Pacific remains the fastest-growing region for wide bandgap applications, with China rapidly expanding manufacturing capabilities and government-led initiatives to localize wafer and device production. Japan and South Korea continue to push high-reliability solutions in hyperscale clusters, while emerging economies in Southeast Asia integrate GaN-based designs to meet stringent energy efficiency mandates and infrastructure resilience goals Â

Industry leadership in gallium nitride power integrated circuits is exemplified by pure-play innovators who have achieved world-first demonstrations of multi-kilowatt data center power supplies operating above 98 percent efficiency. These pioneering solutions combine GaN and SiC device sets to optimize both switching performance and thermal resilience, driving early traction in AI and hyperscale environments Â

Silicon carbide specialists have advanced wafer capacity agreements with global semiconductor organizations to secure long-term supply of 150 millimeter wafers, underscoring the critical importance of scaled material access. Recent events in mid-2025 have prompted certain SiC pioneers to restructure operations through prepackaged Chapter 11 proceedings, highlighting the capital intensity of wafer and module fabrication Â

Broader semiconductor incumbents have fortified their positions through strategic acquisitions of GaN technology firms and partnerships to extend capacity reservations. One leading power semiconductor manufacturer expanded its supply agreement for SiC wafers, reinforcing a multi-source sourcing strategy for high-voltage device portfolios. Additionally, global foundries and ASIC vendors are collaborating on reference designs that leverage third-generation SiC MOSFET platforms and digital isolation drivers to accelerate time to market in server power and telecommunication power modules Â

Leaders should prioritize vertically integrated supply strategies that combine in-house wafer production, strategic partnerships and diversified sourcing to mitigate tariff volatility and ensure continuity of critical component access. Embracing hybrid topologies that balance hard and soft switching approaches can reduce component count and simplify thermal management without sacrificing efficiency.

Investing in targeted research and development efforts around advanced packaging and thermal interface materials will further enhance power density thresholds, while close engagement with standards bodies can shape the efficiency benchmarks that will govern future data center deployments. Forming cross-industry consortiums to share best practices in wide bandgap device qualification, reliability testing and manufacturing yield optimization can accelerate collective progress and drive down unit costs.

Finally, establishing long-term supply agreements that align with emerging policy incentives and municipal energy efficiency targets will position organizations to capitalize on government funding programs and sustainability mandates. By integrating these strategic imperatives into both corporate planning and technology roadmaps, industry leaders can unlock the full potential of wide bandgap materials to deliver resilient, high-performance power infrastructures.

This research synthesized insights through a robust multi-method approach combining primary interviews with device manufacturers, power supply OEMs and hyperscale data center operators alongside secondary analysis of industry white papers, patent filings and regulatory filings. Device performance metrics were validated through laboratory testing data and reference design efficiency results published by leading semiconductor vendors.

Supply chain dynamics were assessed via a comprehensive review of tariff schedules, exclusion notices and trade investigation proceedings, while regional demand patterns were triangulated using energy consumption datasets, sustainability roadmaps and government incentive program archives. Segmentation frameworks were constructed by mapping device attributes such as bandgap material, topology configuration, component type, power rating and application context against deployment scenarios in modern data center architectures.

This structured methodology ensured that findings were corroborated across diverse data sources, enabling a nuanced understanding of both technological trajectories and market access considerations. Rigorous data triangulation and peer review by subject matter experts further heightened the reliability of insights presented in this summary.

Wide bandgap materials represent a transformative frontier for data center power delivery, offering pathbreaking advances in efficiency, power density and thermal management. The confluence of GaN and SiC technology developments, evolving design topologies and supportive policy frameworks heralds a new era in which power conversion systems are tailored to meet the scale, reliability and sustainability demands of modern compute environments.

Regional nuances in adoption, from mature markets in the Americas to robust growth in Asia-Pacific and regulatory-driven uptake in EMEA, underscore the strategic need for tailored approaches to sourcing, design and certification. Meanwhile, tariff escalations and trade investigations reinforce the value of supply chain resilience strategies and collaborative innovation consortia.

Moving forward, data center operators and power electronics stakeholders must align technology roadmaps with actionable policy engagement, invest in advanced materials research and forge partnerships across the ecosystem. By doing so, they will ensure that wide bandgap innovations continue to unlock the next generation of power systems capable of fueling the ever-expanding digital economy.

Ready to propel your data center power strategy with unrivaled insights derived from rigorous analysis of GaN and SiC applications? Reach out to Ketan Rohom, Associate Director of Sales & Marketing, to secure your exclusive access to the full market research report and gain the competitive edge your organization demands.