AI ignites the electricity revolution! Just how power-deficient is the United States?

On Wednesday (March 4th), the power grid equipment stocks surged significantly, with Canaan Intelligent, Tongguang Cable, AnKao Smart Electric, and others hitting the daily limit-up, along with Hanlan Co., Ltd. and Huadong Cable also reaching the limit.

In terms of news, according to Xinhua News Agency, several American tech giants including Amazon, Google, and Meta plan to visit the White House to meet with President Trump. During the visit, they will sign written agreements to commit to supplying or purchasing electricity needed for AI data centers. This move aims to address widespread public dissatisfaction over rising electricity prices, though Trump did not disclose the specific details of the agreement.

PJM, the largest regional power grid operator in the U.S., previously required AI data centers to source electricity only from new energy sources to avoid reducing existing power supplies. Due to demand forecasts exceeding supply increases, electricity prices in some regions have risen by over 20% in the past year.

The surge in AI demand for electricity has driven increased investment in U.S. power grids. According to Cailian Press, in recent months, the three major regional grid operators in the U.S. have approved a total of $75 billion in transmission expansion projects, primarily involving the construction of ultra-high-voltage lines at 765 kV—the highest operating voltage level in the U.S., with transmission capacity six times that of traditional lines. If these grid expansion projects are successfully completed, they will form the largest and most powerful power transmission network in U.S. history.

Guoxin Securities data shows that U.S. power grid investments are projected to be $93 billion in 2023, $105 billion in 2024, and $115 billion in 2025. These figures are expected to grow to $122 billion and $128 billion in 2026 and 2027, respectively.

The U.S. power infrastructure boom also presents opportunities for Chinese related companies to expand overseas. According to Huaxia Fund research, North America faces a 30% gap in power transformer supply and an 80% reliance on imports. Chinese equipment companies, with their complete industrial chain, fast delivery cycles, and technological advantages, are becoming an indispensable force in global grid upgrades, with export orders and prices rising simultaneously.

These opportunities are even extending into high-end fields such as gas turbines. For example, Jereh Group recently announced that its overseas subsidiary signed a $182 million (about 1.265 billion RMB) contract for gas turbine generator sets with North American clients.

Industry analysts point out that as the energy supporting market for U.S. AI data centers may surpass $100 billion, Chinese related industry chain companies are expected to continue capturing market share.

Huaxia Fund believes that from a technological iteration perspective, a new growth pole is forming. New technologies such as solid-state transformers (SST), flexible direct current transmission, and virtual power plants are moving from laboratory experiments to large-scale applications. These technologies not only meet the high-density power supply needs of AI computing centers but also significantly increase the value of individual devices, opening a “second growth curve” for the industry.

(Source: Oriental Wealth Research Center)