Institutions: Computing power expansion drives rapid growth in electricity demand

CITIC Securities believes that the construction of “dual carbon” and the new type of power system will remain the main theme running through the “15th Five-Year Plan (15th Five-Year period),” and that a large number of ultra-high-voltage projects being filed/soon filed for review will help solidify the construction and development expectations for major ultra-high-voltage projects. On the other hand, in the context of AI development that continues to drive rising power demand and the backdrop of a global power equipment replacement cycle, new business formats such as computing-and-power coordination will continue to be explored and developed. It is recommended to pay attention to equipment leaders related to major domestic demand projects, as well as companies related to the development trends of advanced technologies such as the digital power grid and computing-and-power coordination.

HuaXin Securities believes that the expansion of computing capacity leads to rapid growth in power demand, gradually making energy supply a key factor constraining the development of the AI industry, and also driving “computing-and-power coordination” to become an important policy direction. In recent years, through policies such as “sending data from the east to the west,” green and low-carbon actions for data centers, and the construction of a new type of power system, the country has promoted the layout of computing centers toward regions rich in new energy resources. It also achieves spatiotemporal matching between computing demand and new energy supply through green power trading, source-grid-load-storage integrated solutions, and joint dispatch of computing power and electricity. From an industrial perspective, “computing-and-power coordination” will drive synchronized expansion of computing infrastructure and power infrastructure. Investment opportunities mainly lie in three main lines: green power and new energy operations, power grids and power equipment upgrades, and IDC development together with expansion of computing infrastructure. The industry chain’s business momentum is expected to continue improving. (Securities Times)