Seven consecutive days of gains! Power stocks rise against the trend in early trading, with BlackRock transforming into a "Liaoxiang" of the power sector

On the morning of March 12, the three major A-share indices all declined. By the early close, most sectors were down, with the power industry bucking the trend and rising 0.11%, temporarily reporting seven consecutive days of gains on the daily K-line chart. In individual stocks, Datang Power Generation, Green Power, Green Power Electric, Central South Culture, Energy-saving Wind Power, and Meiyan Jixiang hit the daily limit. GCL Energy Science & Technology rose over 9%, while Xintian Green Energy, Shanghai Energy, Construction Investment Energy, Zeyu Intelligent, and Baitong Energy all gained more than 4%.

BlackRock Transforms into Power “Liaoxiang”

In news, on March 11 (Wednesday), Wall Street giant and the world’s largest public fund management company BlackRock announced a $100 million investment in a technical worker training program. The funds will be distributed through non-profit organizations and workforce development partners across multiple states in the U.S. The goal of this plan is to benefit 50,000 workers over the next five years.

The technical workers to benefit include electricians, plumbers, HVAC technicians, and steelworkers. Currently, these industries face an aging workforce, with many workers nearing retirement. According to the International Brotherhood of Electrical Workers, over the next decade, more than 200,000 electricians are expected to retire in the U.S., while over 300,000 new electricians will be needed to meet AI infrastructure demands.

Image source: BlackRock official website

From the above news, the phrase “the end of computing power is electricity” continues to gain significance. Building AI data centers in the U.S. faces not only practical energy grid challenges but also a shortage of skilled technicians, making it difficult for Silicon Valley giants to quickly establish AI infrastructure despite ample funding.

BlackRock CEO Larry Fink pointed out that by 2033, the U.S. will need $10 trillion in infrastructure investment to upgrade old systems and build new energy, digital, and AI infrastructure. However, funding alone is not enough; talent is the core to building America’s future.

The shortage of technical workers has already driven up wages in these professions. While there are regional differences, U.S. electricians can earn six-figure salaries after training. Near Washington, D.C., where data centers are most concentrated, the International Brotherhood of Electrical Workers Local 26 apprentices start at about $26 per hour, roughly equivalent to a monthly salary of 30,000 RMB.

After completing a five-year apprenticeship, licensed electricians earn about $59.50 per hour, approximately 410 RMB, plus benefits like health insurance and pensions. With overtime or supervisory roles, their income can approach $200,000.

Power-Computing Collaboration Opens a New Green Power Cycle

The explosive growth of AI computing power is profoundly reshaping electricity demand structures. Currently, power companies are actively developing various business models, with new integrations involving computing, energy storage, green hydrogen, and green alcohol emerging continuously.

CICC Securities pointed out that this year, “power-computing collaboration” was included in the government work report for the first time. The March government work report explicitly states: “Implement large-scale intelligent computing clusters, power-computing collaboration, and other new infrastructure projects; strengthen nationwide integrated computing power monitoring and dispatch; support the development of public clouds.” The inclusion of “power-computing collaboration” in the State Council’s report indicates that the coordinated development of power and computing has risen to a national strategic level. In February, the State-owned Assets Supervision and Administration Commission (SASAC) proposed that central enterprises should strengthen investment guidance, actively expand effective computing investments, and promote the coordinated development of “computing power + electricity.”

Previously, policies required data centers to use over 80% green electricity. As high-energy-consuming industries, data centers face strict energy consumption dual-control policies. The introduction of green electricity offers a feasible policy path for data centers to break through traditional energy consumption bottlenecks and meet growing computing demands. Electricity costs are a major part of data center operating expenses, accounting for up to 56.7%, making it the largest expenditure. The low electricity prices of green power provide an effective way to reduce costs.

In the A-share market, according to Eastmoney’s StockChoice data, the green power concept has performed strongly this year. As of midday on March 12, out of 155 constituent stocks, 138 saw their prices rise this year, with a median increase of 18.66%. Four stocks doubled in value, with Yunnan Energy Holding up over 220%, and Xiaocheng Technology, Southern Power Grid Energy, and GCL Energy Science & Technology all up more than 110%.

(Article source: Eastmoney Research Center)