Institution: Computing Power Expansion Drives Rapid Growth in Electricity Demand

China Securities believes that dual carbon goals and the construction of new power systems will remain the main themes throughout the 14th Five-Year Plan for the power sector. A large number of ultra-high-voltage projects are being approved or planned, strengthening expectations for the development of major ultra-high-voltage projects. On the other hand, with AI development continuously increasing electricity demand and the global large-scale upgrade cycle of power equipment, new business models such as computing and electricity collaboration are actively exploring and developing. It is recommended to focus on leading companies related to major domestic demand projects and those involved in the development of digital grids and advanced technologies like computing and electricity collaboration.

Huaxin Securities believes that the expansion of computing power is driving rapid growth in electricity demand, making energy supply increasingly a key factor constraining AI industry development. This also promotes “computing and electricity collaboration” as an important policy direction. In recent years, policies such as “East Data West Computing,” green and low-carbon data center initiatives, and new power system construction have encouraged the deployment of computing centers in regions rich in renewable resources. Through green electricity trading, integrated source-grid-load-storage, and joint scheduling of computing and electricity, the spatial and temporal matching of computing demand with renewable energy supply has been improved. From an industry perspective, “computing and electricity collaboration” will promote the synchronized expansion of computing infrastructure and power infrastructure. Investment opportunities mainly focus on three main areas: green electricity and renewable energy operations, grid and power equipment upgrades, and the expansion of IDC and computing infrastructure. The prosperity of related industry chains is expected to continue improving.