AmberSemi Launches PowerTile to Cut Data Center Power Drain

Why It Matters

The 85% loss reduction could dramatically lower operating expenses and carbon footprints for hyperscale AI farms, easing grid strain as data‑center demand surges. By improving server‑level efficiency, PowerTile helps operators achieve higher compute density without costly power‑plant upgrades.

Key Takeaways

• PowerTile reduces board-level losses by 85%.
• 1,000‑amp vertical delivery fits quarter‑size module.
• Saves 225 MW annually for 500 MW AI data center.
• Enables higher power density without new grid capacity.
• Shipping slated for 2027 after partner testing.

Pulse Analysis

Data centers now account for over 4% of U.S. electricity consumption, a figure projected to climb toward 12% by 2028 as AI workloads explode. Operators face mounting pressure to trim energy waste while maintaining performance, prompting a wave of architectural innovations aimed at tightening the power‑to‑compute chain. In this context, AmberSemi’s PowerTile arrives as a targeted solution that tackles one of the most stubborn inefficiencies: lateral power distribution on server boards.

PowerTile flips the traditional power‑delivery paradigm by routing 1,000 amps vertically through a compact module mounted directly beneath the processor. This vertical path shortens the electrical distance, slashing voltage drop and heat generation, which the company quantifies as an 85% reduction in board‑level losses. At roughly 20 mm × 24 mm × 1.68 mm, the device fits the footprint of a quarter yet can be stacked to exceed 10,000 amps for the most power‑hungry GPUs, CPUs, and FPGAs. The claimed annual savings—225 MW for a 500 MW AI facility—translate into roughly $160 million, a compelling economic argument for hyperscalers seeking to stretch capex.

If the technology lives up to its promises, PowerTile could become a cornerstone of next‑generation AI infrastructure, allowing data‑center operators to increase rack density without triggering new grid upgrades or cooling overhauls. AmberSemi’s roadmap includes partner testing later this year and a 2027 commercial launch, positioning the product to ride the wave of AI‑driven expansion. However, experts caution that efficiency gains must be layered with broader power‑system upgrades to fully mitigate the looming 300% rise in data‑center electricity demand projected for 2050.

AmberSemi Launches PowerTile to Cut Data Center Power Drain

Shane Snider, Senior News Writer, Data Center Knowledge · January 29 2026 · 4 Min Read

California‑based fabless semiconductor firm AmberSemi said it has taped out a new power‑delivery device for AI processors in data centers, claiming large power reductions in board‑level power distribution losses. The coin‑sized PowerTile mounts on the back of a server board directly beneath the processor, and, according to the company, can cut board‑level power distribution losses by 85 %.

The PowerTile is a 1,000‑amp vertical power device that delivers current via a vertical path rather than a traditional lateral one. Measuring about 20 mm × 24 mm × 1.68 mm – roughly the size of a quarter – the module can be used with multiple devices to scale beyond 10,000 amps. AmberSemi said it is designed to support CPUs, GPUs, FPGAs, and other high‑performance processors that require large current delivery in a minimal space.

For a 500 MW AI data center, AmberSemi estimates the PowerTile can save 225 MW of power per year (worth about $160 million). The company compares this to the approximate annual energy output of a small modular nuclear reactor, depending on plant capacity and capacity factor.

“This is entirely on target,” said Mark Vena, CEO and principal analyst at SmartTech Research. “AmberSemi is basically saying the power path should go vertical, not sideways, by mounting a 1,000‑amp device on the backside of the server board directly under the processor. That targets one of the ugliest hidden costs in AI racks: voltage drop and wasted power between the rack input and the chip.”

Data Centers Going Vertical

In an interview with Data Center Knowledge, AmberSemi CEO Thar Casey said PowerTile has been designed with future AI data‑center architectures in mind as processors continue to advance in performance and power needs.

“The industry has recognized, based on future AI processors, that lateral power will not work,” Casey said. “We made a conscious decision to focus on future AI data centers.”

Rapidly evolving processors from Nvidia, AMD, and others are increasing pressure on data‑center operators to handle rising power demands. “Existing power architectures are struggling to scale with the rapidly increasing demands of next‑generation AI processors, creating a bottleneck that limits system performance,” Casey added. He noted that PowerTile delivers “extremely high current in a compact form factor that can be mounted beneath the processor for a shorter, more efficient power path.”

Solution to Power Crunch?

A U.S. Department of Energy report estimates that data centers alone consumed 4.4 % of U.S. electricity in 2023 and projects a sharp rise in the coming years, with data centers potentially eating up to 12 % of electricity output by 2028. Power and natural‑resource use have become growing concerns, delaying or halting dozens of planned data centers. According to Data Center Watch, local activism in the past two years has blocked or delayed construction for $64 billion in data centers. A National Electrical Manufacturers Association study projects that U.S. electricity demand could grow 50 % by 2050, with data‑center consumption increasing by 300 %.

The power dilemma has become a key factor in the AI arms race as hyperscalers build out massive data centers at an unprecedented pace. AmberSemi sees its PowerTile product as one piece of the broader efficiency puzzle.

“Power is now the key constraint in scaling AI infrastructure,” Casey said in an AmberSemi whitepaper. “By improving efficiency at the server level, we enable higher power density and deliver more usable energy directly to the AI processor – without requiring the power sooner from the massive new investments in power plants or grid infrastructure.”

Vena noted that solutions like PowerTile could play an important role as demand for efficiency increases, while cautioning that broader upgrades will still be necessary.

“It helps, but it’s not a silver bullet,” Vena said. “If it really cuts board‑level delivery losses by 85 % and pushes more watts into the compute instead of heat, that lowers wasted energy per inference. But grid strain also comes from sheer demand growth, plus cooling and facility power chains, so efficiency wins like this need to stack with broader data‑center power and thermal upgrades.”

AmberSemi expects to start evaluation and testing with partners later this year, with initial shipping targeted for 2027.