The semiconductor group Infineon increases the performance of power supplies for servers significantly in light of the rising energy demand in data centers. The goal is to benefit from the growing business with servers that are suitable for the use of Artificial Intelligence.

Infineon plans to improve the performance of so-called Power Supply Units (PSU) to up to 12 kilowatts (kW) by using a combination of the semiconductor materials silicon, silicon carbide, and gallium nitride, as the company announced on Thursday in Munich. Currently, PSUs with 3 and 3.3 kW are available. Infineon announced the market launch for a power supply unit with 8-kilowatt performance for the first quarter of 2025.

The increasing use of Artificial Intelligence will drive energy demand in servers. High-performance graphics processors currently consume up to 1 kilowatt of electricity per chip. Infineon expects this value to double by the end of the decade.

As a result, the group anticipates significantly increasing revenues in the business with AI servers. Power supplies are only one component. In a presentation, Infineon spoke of potential revenues of between $850 and $1,800 per AI server. In conventional servers, Infineon components can be found for less than $100.

The Infineon stock temporarily fell by 1.14 percent to 37.64 euros via XETRA.