--- title: "Guotai Junan Securities: Computing Power Surge, AIDC Wave Elevates the Value of Power Supply and Distribution Systems" type: "News" locale: "en" url: "https://longbridge.com/en/news/227455476.md" description: "Guojin Securities released a research report indicating that the investment proportion of power supply and distribution systems in data centers is about 10-15%. It is expected that global data center investment will exceed USD 400 billion in 2024. With the in-depth application of artificial intelligence technology, the global AIDC installed capacity is expected to grow from 7GW in 2024 to 59GW in 2028, with an average annual growth rate of 73%. It is recommended to focus on four investment main lines: AC/DC server power supplies, backup power HVDC/BBU, supporting electrical equipment, and diesel generators" datetime: "2025-02-07T01:58:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/227455476.md) - [en](https://longbridge.com/en/news/227455476.md) - [zh-HK](https://longbridge.com/zh-HK/news/227455476.md) generator: "portal-rs" --- # Guotai Junan Securities: Computing Power Surge, AIDC Wave Elevates the Value of Power Supply and Distribution Systems According to the Zhitong Finance APP, Guojin Securities released a research report stating that the power distribution system is the "heart and blood vessels" of data centers, accounting for about 10-15% of investment. It is expected that global data center investment will exceed $400 billion in 2024, with the United States/Europe/China accounting for 30%/24%/23%. As artificial intelligence technology continues to deepen its application across various industries, it is expected that the global AIDC new installed capacity will grow from 7GW in 2024 to 59GW in 2028, with a CAGR of up to 73%. It is recommended to focus on four investment main lines: AC/DC server power supplies, backup power HVDC/BBU, supporting electrical equipment, and diesel generators. ## **Guojin Securities' main viewpoints are as follows:** **Uninterruptible Power Supply Systems: High-power power supply is vast, and the HVDC and BBU markets are burgeoning** Traditional UPS technology is mature and highly reliable, but it requires AC/DC-DC/AC two-stage conversion, while HVDC only requires one AC/DC conversion, making it more efficient. In recent years, domestic internet giants have promoted HVDC-Panama power supply, which has better integration and efficiency than traditional UPS and HVDC solutions; overseas giants mainly choose the OCP solution, using PSU+BBU instead of UPS, which is more suitable for high-power scenarios like AIDC. NVIDIA's current GB200 and GB300 have introduced BBU as a backup power solution, and tech giants like Meta have set BBU modules as standard configurations in the new generation of high-power server standards (such as ORv3 HPR), expecting a gradual increase in subsequent penetration rates. The BBU battery market is currently dominated by Japan and South Korea, and it is expected to replicate the domestic substitution path of electric tool batteries. Currently, due to some AI servers being installed in existing data centers, a UPS+PSU power supply solution is still needed to be compatible with traditional loads. As server power consumption requirements continue to rise, it is expected that the proportion of high power density, high efficiency PSU+BBU and HVDC+PSU solutions will continue to increase. Assuming that from 2023 to 2028, the penetration rates of BBU/HVDC in AIDC will increase from 48%/2% to 60%/15%, it is expected that by 2025, the market space for high-power PSU/AIDC backup power (UPS+HVDC+BBU) will be 30.4 billion and 10.1 billion yuan, respectively, with a global AIDC high-power PSU/HVDC/BBU market CAGR of 243%/165%/79% from 2024 to 2028. **Power Distribution and Transformation Systems: AIDC construction drives high demand for transformers and switchgear, leading domestic and foreign leading companies to increase R&D investment** Step-down transformers and high and low voltage switchgear are the core of the power distribution system. AIDC loads are significantly higher than traditional data center loads, so building additional substations is expected to be the mainstream trend in the future, bringing more incremental space for power equipment of 110kV and above. It is expected that by 2028, the global demand for transformers/switchgear for AIDC will reach 68.1 billion and 98.5 billion yuan, respectively, with a CAGR of 71%/69% from 2024 to 2028, and the proportion of total downstream demand will increase to 12%/7%, respectively. Currently, in the data center field, switchgear and transformers, leading overseas manufacturers include Eaton, Siemens, Schneider, etc., which mainly provide modular equipment and integrated solutions, while domestic manufacturers such as Mingyang Electric (301291.SZ), Jinpan Technology (688676.SH), and Igor (002922.SZ) continue to increase R&D investment Downstream customer introduction leads. **Backup power diesel generators: Nearly trillion market scale, clear trend of localization.** Diesel generators are an important backup power emergency solution for data centers. Benefiting from AIDC's requirements for diesel generator power, power output stability, and durability, the barriers to single units and value are expected to increase. It is estimated that by 2028, the global market for diesel generators used in data centers will reach 83.4 billion yuan, with a CAGR of 6%. Among them, the market for diesel generators used in AIDC will reach 30.2 billion yuan, with a CAGR of 43%. Currently, the high-end diesel generator market is monopolized by foreign companies such as Cummins and MTU, with a significant price difference between domestic and foreign products, urgently needing domestic alternatives. With leading domestic manufacturers such as Weichai Power (02338, 000338.SZ) and Yuchai Machinery expanding production, as well as the capital expansion of domestic data center application giants under the trend of AI development, the share of domestic supply is expected to increase. **Investment Recommendations** The most optimistic about the high-power density AC/DC power supply segment with high barriers, large value, and good competitive landscape; secondly, optimistic about the penetration rate increase of HVDC and BBU solutions, which will have a substitution effect on UPS; thirdly, optimistic about the demand growth for supporting electrical equipment and diesel generators driven by AIDC construction. It is recommended to focus on four investment main lines: AC/DC server power supply, backup power HVDC/BBU, supporting electrical equipment, and diesel generators. **Risk Warning:** The global expansion of data centers may not meet expectations, deterioration of policies in the US-China technology sector, intensified market competition, and risks of technological iteration ### Related Stocks - [000977.CN](https://longbridge.com/en/quote/000977.CN.md) - [688334.CN](https://longbridge.com/en/quote/688334.CN.md) - [SIEGY.US](https://longbridge.com/en/quote/SIEGY.US.md) - [ETON.US](https://longbridge.com/en/quote/ETON.US.md) - [600109.CN](https://longbridge.com/en/quote/600109.CN.md) - [002922.CN](https://longbridge.com/en/quote/002922.CN.md) - [02338.HK](https://longbridge.com/en/quote/02338.HK.md) - [ETN.US](https://longbridge.com/en/quote/ETN.US.md) - [CMI.US](https://longbridge.com/en/quote/CMI.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [688676.CN](https://longbridge.com/en/quote/688676.CN.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) ## Related News & Research - [Major IEH Shareholder Makes Bold Move With Fresh Stock Sale](https://longbridge.com/en/news/296178632.md) - [LIVE MARKETS-Europe's time to shine?](https://longbridge.com/en/news/296085944.md) - [Alex Jones gets Sandy Hook family's Texas verdict reduced on appeal](https://longbridge.com/en/news/296643067.md) - [PFSE: Record Q2 revenue and profit growth, driven by strong demand and innovation in HVDC technology](https://longbridge.com/en/news/296308264.md) - [Yonyou hosts GBIC 2026 in Nanjing, unveils BIP 6 enterprise AI software suite](https://longbridge.com/en/news/296076662.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**