News
GaN adoption in data centers projected for 2028
Sunday, January 18, 2026 at 08:22 PM
Adoption of Gallium Nitride (GaN) power solutions within data center infrastructure is projected to be delayed until 2028, impacting the roadmap for advanced power management in AI server clusters.
Context
Monolithic Power Systems (MPS) has indicated that the broad adoption of Gallium Nitride (GaN) in data centers is likely deferred until 2028. While GaN promises superior efficiency over traditional silicon, existing power management solutions are proving sufficient to handle the immediate energy demands of the AI infrastructure boom. This timeline reflects the industry's rigorous focus on reliability and cost-scaling for hyperscale environments, ensuring that silicon-based architectures remain the primary standard through the mid-2020s.
For investors, this shift extends the lifecycle of MPS’s high-margin silicon power modules currently powering NVIDIA’s Blackwell and Hopper GPU architectures. Although GaN is expected to eventually dominate the $30 billion power conversion market, the 2028 target allows MPS to maximize its current market leadership while leading the gradual transition to next-generation wide-bandgap materials. This suggests a more stable and predictable roadmap for the power supply chain, favoring established leaders with robust, high-volume silicon portfolios.
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