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A power supply takes the AC current from the wall and gives the correct internal DC connectors (3.3V, 5V, and 12V) to power the board, drives, and devices in your system. The biggest reasons to increase the size / type of power supply is for higher level video cards, a large number of drives, or commercial or business use.  Higher end power supplies are rated for more maximum amps and will be more durable 

A power supply will have a certain number of 15 pin SATA connectors (for drives), 4 pin molex connectors (for fans), and the required connectors for the motherboard power. Some power supplies also have PCIe 6 pin or 8 pin connectors for video cards.

High end video cards often need separate power plugs to be populated with a corresponding plug from the power supply.  The video card may have a single or multiple 6pin  or 8pin plugs.  Your power supply will need the correct plugs for your video card.

ATI Radeon R9 / RX and Nvidia Geforce GTX cards need a feature called Active PFC (Power Fault Control / Power Factor Correction). Active PFC prevents a system reboot when these cards increase current usage for brief period  

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