--- title: "Debon Securities: DeepSeek accelerates the formation of a closed loop for domestic computing power chains, and the value network is expected to experience explosive growth" type: "News" locale: "en" url: "https://longbridge.com/en/news/229683814.md" description: "Debon Securities released a research report indicating that against the backdrop of AI-driven growth and tightening policy regulations, the supply-demand pattern of the domestic IDC industry is expected to improve, with leading enterprises benefiting first. As the demand for AIDC increases, the server and switch industries will also benefit, and it is recommended to pay attention to related companies. Data center leasing methods are divided into retail and wholesale types, and the issue of market oversupply still exists, but the growth in AI demand will drive industry development" datetime: "2025-02-26T03:57:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/229683814.md) - [en](https://longbridge.com/en/news/229683814.md) - [zh-HK](https://longbridge.com/zh-HK/news/229683814.md) --- # Debon Securities: DeepSeek accelerates the formation of a closed loop for domestic computing power chains, and the value network is expected to experience explosive growth According to the Zhitong Finance APP, Debang Securities has released a research report stating that against the backdrop of AI-driven growth and tightening policy regulations, the supply-demand pattern of the domestic IDC industry is expected to marginally improve. The firm believes that leading companies with core regional data center resources and layouts in AIDC will benefit first. With the rapid increase in AIDC demand, the firm also believes that the server and switch industries are likely to benefit significantly, and recommends paying attention to relevant domestic companies. Data center leasing methods are divided into retail and wholesale types, where retail data centers mainly target small and medium-sized enterprise clients, have a relatively low rack utilization rate, but generate higher rental income per cabinet; while wholesale data centers serve large enterprises, and analysis shows that newly built data centers can yield considerable returns. ## Debang Securities' main viewpoints are as follows: **Computing power reflects network value, AIDC becomes the pioneer of infrastructure** IDC utilizes existing internet communication lines and bandwidth resources to establish standardized telecom-grade server room environments, providing comprehensive services such as server hosting, leasing, and related value-added services for enterprises and governments. China's IDC industry has developed rapidly, with the total scale of data center racks growing from 3.15 million in 2019 to 8.1 million in 2023, but this has also led to a short-term oversupply issue in the market. The rack utilization rate in first-tier cities remains high, while the demand for computing power in the central, western, and northeastern regions is limited, resulting in lower rack utilization rates. Against the backdrop of supply-demand imbalance, some companies have seen varying degrees of decline in IDC rental prices. **Based on AI demand pull and stricter domestic energy consumption assessments, the firm believes the IDC supply-demand pattern is expected to improve** Demand side: The iterative development of AI large models is expected to drive AIDC demand. Since the popularity of ChatGPT, numerous domestic large models have emerged, with performance catching up, such as Deepseek-R1, which matches the performance of OpenAI's o1 official version, and has a low usage cost, with API service pricing at 1 yuan (cache hit) / 4 yuan (cache miss) per million input tokens, and 16 yuan per million output tokens, compared to OpenAI's o1 prices of 55, 110, and 438 yuan respectively. The firm believes that as low-cost inference models like Deepseek gradually become popular, the significant reduction in inference costs and prices may lead to a boom in application-side demand, thereby driving a substantial increase in overall computing power demand and subsequently AIDC demand. Additionally, from the perspective of capital expenditure, domestic cloud vendors, foreign cloud vendors, and domestic operators have significantly increased their investments related to AI, keeping AIDC demand robust. **Data center supply is accelerating clearance, focus on the demand for intelligent computing center switches and servers** The national regulation of data centers has shifted from rough to refined, clearly leaning towards intelligent computing centers, with the focus shifting from reducing PUE to improving the efficiency of energy-computing power conversion. The firm believes that under a series of policy combinations, existing data centers will accelerate clearance, rack power density will gradually increase, and rental prices are expected to stabilize. Meanwhile, with the rapid increase in AIDC demand, the firm believes that the server and switch industries are likely to benefit significantly, and recommends paying attention to relevant domestic companies **Profitability Analysis: New Data Center Generates Significant Revenue** Data center leasing methods are divided into retail and wholesale types. Retail data centers primarily target small and medium-sized enterprise clients, with a relatively low rack utilization rate but higher rental income per cabinet; wholesale data centers, on the other hand, serve large enterprises, providing highly customized large-capacity modular spaces, with a higher rack utilization rate but lower rental income per cabinet. The bank uses the Aofei Data New Generation Cloud Computing and Artificial Intelligence Industrial Park (Building B and C in Langfang Gu'an) project as an example, estimating that the post-tax investment payback period for the project is 6.7 years (including the construction period), and the post-tax internal rate of return is 12.3%. Considering loans, the equity IRR reaches as high as 25.8%. **Risk Warning:** Intensified industry competition; capital expenditures on computing power may fall short of expectations; IDC construction may not meet expectations ### Related Stocks - [603118.CN](https://longbridge.com/en/quote/603118.CN.md) - [301165.CN](https://longbridge.com/en/quote/301165.CN.md) - [301191.CN](https://longbridge.com/en/quote/301191.CN.md) - [300738.CN](https://longbridge.com/en/quote/300738.CN.md) - [OpenAI.NA](https://longbridge.com/en/quote/OpenAI.NA.md) ## Related News & Research - [Koç Holding buys 0.67% Ford Otosan stake for TL 1.85 billion from Temel Ticaret](https://longbridge.com/en/news/295498143.md) - [Reworthing Launches: An Independent Scoring Framework for Direct Selling and Social Commerce](https://longbridge.com/en/news/295453860.md) - [VirExit Technologies announces availability of shareholder letter in new report](https://longbridge.com/en/news/295532931.md) - [Uniper net income rises 108.61% to €557 million in H1 FY26; sales increase 0.8% to €33.33 billion](https://longbridge.com/en/news/295490663.md) - [SiS International unit SiS Distribution Thailand posts THB 525.56 million H1 profit attributable to owners](https://longbridge.com/en/news/295388466.md)