Systems and methods are provided for a torch power system using a multi-stage compressor. In one embodiment, a system includes a torch power unit that includes a compressor having multiple compression stages. A method of operation is provided that includes compressing a gas via a multi-stage compressor in a torch power unit. A method of manufacturing a torch power unit is provided that includes providing a multi-stage compressor for a torch power unit and mounting the multi-stage compressor inside an enclosure of the torch power unit. Another system is provided that includes a plasma cutting circuit, a multi-stage compressor, a motor coupled to the compressor, and a compressor controller.