G Sachs: China Reportedly Plans RMB2T for Data Center Buildout; NEA Power Demand Forecast Above Expectations

G Sachs published a research report citing Bloomberg that China is preparing to invest approximately RMB2 trillion (around USD295 billion) over the next five years to build data centers nationwide. While the bank did not comment on the likelihood of policy rollout, it shared several observations on China’s data center sector.

As early as January 2025, the National Data Administration (NDA), together with multiple ministries, issued guidelines estimating that data infrastructure would attract around RMB2 trillion in direct investment over the next five years, including the construction and upgrade of network, computing and security facilities, as well as data circulation and utilization. G Sachs noted that the National Energy Administration (NEA)’s forecast for data center power demand came in stronger than expected. On May 26, 2026, the NEA stated that China’s data center power consumption is expected to reach 800TWh by 2030, implying a CAGR of 36% from 2025 to 2030 and accounting for 6% of China’s total electricity consumption by 2030 (versus 1.6% in 2025). Taking into account improvements in power usage effectiveness (PUE), the bank believes this could translate into faster growth in China’s IT power demand from data centers, compared with its previous forecast of a 20% CAGR. Meanwhile, NEA data showed that from January to April 2026, national electricity consumption of China’s internet data services industry rose 44% YoY.

Within G Sachs’ China data center coverage, it rates GDS-SW (09698.HK) +0.840 (+2.488%) Short selling $89.33M; Ratio 47.031% , GDS Holdings Limited (GDS.US) , VNET Group, Inc. (VNET.US) and RANGE TECHNOLOGY (300442.SZ) +2.050 (+2.696%) as Buy; @HUB (603881.SH) +0.460 (+1.342%) as Neutral; and SINNET (300383.SZ) +0.150 (+1.190%) as Sell. (ad/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-09 16:25.) (A Shares quote is delayed for at least 15 mins.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)