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I am trying to fit a Mini-ITX PSU into a small custom computer case. However with the PSU metal cage it is about 1/8" too tall. I can make it fit if I remove the cage.

  1. It is safe to run a PSU without the metal cage?
  2. The PSU will be about 1/8" away from the motherboard. Does that cause any issues?

I also tried looking for a smaller PSU and the only thing I can find is a Pico PSU with an external power adapter. However the power adapters seem to be sold out everywhere I have looked. 12V 16A power adapters are apparently hard to find or I am looking in the wrong places.

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If you have to ask, then no. It is not safe. The input capacitor is at extremely high voltage (upto 350V for 240V mains, not counting transients). And as you suspect, there will also be electrical noise.

The metal chassis is supposed to be earthed. Besides safety, it also acts to suppress EMI (via Y capacitors), which may interfere with whatever it is powering.

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