The research on nanofluids has shown important improvements of the electrical performance, but so far the attention has only been focused on their use in transformers. The target of this work is to understand if nanofluids can be applied as insulators for power electronics modules, where the major stresses are caused by square waves or PWM voltages. Breakdown events in non-uniform field conditions and different voltage configurations have been deeply investigated revealing the effects of space charge mechanisms. While for DC fields the nanofluids contribution is positive, a completely different conclusion can be evinced from sinusoidal and square waves, where the situation even worsens at higher frequencies. Schlieren images of breakdown events seem to confirm the postulated hypotheses.