Should you install your PSU facing up or down?

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In most PC cases you have the choice of mounting the power supply unit with the fan intake facing upwards or down. Which is better?
Deciding on whether to mount your PSU either facing up or down depends entirely on a few factors, namely case design, airflow with other fans, and the power supply unit itself. The answer is an easy one, should you have enough room between the intake and the floor (and your case has a grill on the bottom for a PSU fan to draw air) you'll want to have your PSU facing downwards.
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This will aid in the unit drawing in much-needed cool air when under load. Granted, a PSU will rarely be under much stress in everyday use — in fact, many units today have an ECO mode that disables the fan unless temperatures and load hit certain levels — but it's best practice to aim for optimal performance. That said, if you want to install your PSU facing up, that's perfectly fine too.

Why is it important to have the PSU facing a cold air intake, if your case has one available?

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