Digital Low Dropout Regulators (LDOs) are an excellent candidate for area-efficient fine-grain power management in heterogeneous systems, leveraging integrated power switches. Relocating the power switches to the backside of the wafer in conjunction with the Backside Power Delivery Network (BSPDN) layer is envisaged as a System Technology Co-Optimization (STCO) booster for finer grain power management and reduced area/cost. We perform a detailed thermal analysis using power-switch-based LDOs enabling per-core DVFS for a high-performance server 3D computing chiplet in a Nanosheet CMOS (A10) technology node with BSPDN. While BSPDN introduces thermal penalties due to a lack of lateral heat spreading, our high-resolution thermal simulations explore the feasibility of moving LDOs to the backside. Increasing the LDO area from 5% to 50% of the backside die area effectively lowers the 2.5/3D System-in-Package (SiP) peak temperature, confirming that thermal concerns do not impede backside LDO integration. This study supports the cost-effective design of next-generation SiPs by demonstrating no adverse thermal impact for relocating power switches to the wafer backside in the nanosheet era.