BOCOM International published a research report stating that the data center industry is entering a phase of orderly explosive growth. Generative artificial intelligence (AI) has triggered explosive growth on the demand side, while supply is constrained by power quotas, approval thresholds and delivery cycles of key equipment, compounded by chip constraints. The supply-demand gap is unlikely to be closed in the short term. From an infrastructure supply-demand perspective, the probability of systemic oversupply in the near term is low, but investors should remain mindful of potential phased mismatches and valuation volatility over a longer cycle.

The broker noted that the proportion of inference is rising rapidly and is expected to become the primary driver of future computing power demand growth. For data center operators, demand for high-density and low-latency computing power will become the main growth engine. In upstream equipment segments, the broker recommends focusing on growth opportunities arising from the large-scale adoption of liquid cooling technology, as well as incremental opportunities for green energy and compliance service providers driven by supportive policies.

BOCOM International maintains a leading rating on the data center sector, believing that leading operators capable of providing immediate supply supplementation are well positioned to further increase market share. The broker recommends GDS-SW (09698.HK) +1.100 (+3.492%) Short selling $51.28M; Ratio 34.979% and SUNEVISION (01686.HK) +0.060 (+1.172%) Short selling $15.98M; Ratio 35.919% as top picks in Hong Kong and mainland China, both rated Buy. (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-16 16:25.)