GF SEC: Smart computing needs drive data center racks towards high-power development AIDC electrical infrastructure embraces opportunities

GF SEC released a research report stating that according to the "White Paper on Infrastructure Evolution of Intelligent Computing Centers" by VT, the power consumption per rack in domestic data centers has increased from 4-6kW in traditional data centers to 20-40kW in Intelligent Computing Centers (AIDC). It is expected to gradually increase to 40-120kW or even higher in the future, showing a trend of high power density in AIDC racks. According to calculations, from 2025 to 2027, the global AIDC will add 15/24/32GW of power, with a year-on-year growth of 183%/53%/35%. Based on a detailed breakdown of the AIDC electrical equipment industry chain, the composite growth rate of each link from 2024 to 2030 is ranked as HVDC > PSU > lead-acid battery > transformer, with corresponding composite growth rates of 97.8%/80.3%/51.0%/50.1%. The market size in 2025 is estimated to be approximately 22.3/290.4/81.0/80.6 billion yuan. GF SEC's main points are as follows: The demand for intelligent computing is driving the development of high-power data center racks, and AIDC's electrical infrastructure is facing opportunities. According to the "White Paper on Infrastructure Evolution of Intelligent Computing Centers" by VT, the power consumption per rack in domestic data centers has increased from 4-6kW in traditional data centers to 20-40kW in Intelligent Computing Centers (AIDC), with the potential to gradually increase to 40-120kW or even higher, showing a trend of high power density in AIDC racks. High-density racks in AIDC have higher requirements for power supply capacity, distribution equipment area ratio, energy utilization rate, server power, and heat dissipation efficiency, driving the corresponding upgrading of electrical infrastructure such as HVDC/UPS, PSU, BBU/supercapacitors, lead-acid batteries, and transformers in data centers. In addition, from the power supply architecture perspective, as the proportion of high-power servers increases in the future, the proportion of high-voltage direct current power supply solutions is expected to gradually increase, and flexible direct current power supply is expected to penetrate. Transformer: Low energy consumption and high security are basic requirements for AIDC transformers. Dry-type transformers and phase-shifting transformers are expected to structurally improve. According to Winning by Observing Data, the compound annual growth rate of transformers from 2023 to 2028 is estimated to be 4.8%. According to calculations by GF SEC, from 2025 to 2027, the transformer market in the data center field is estimated to be 100.7/154.4/208.5 billion yuan, with year-on-year growth rates of 183%/53%/35%. Companies that enter the whitelist of top cloud companies and supply in bulk are expected to benefit. HVDC/UPS: High-density racks drive a multiple-fold increase in cabinet load, HVDC penetration accelerates + testing of third-generation products, HVDC is expected to rise in both quantity and price. Compared to UPS, HVDC has advantages such as high conversion efficiency, space optimization, high reliability, and flexibility for scalability. The penetration rate is expected to increase gradually with the construction of intelligent computing centers. In addition, with the testing of third-generation products, HVDC is expected to rise in both quantity and price, with a more competitive landscape than UPS and opportunities for rapid growth for leading companies. PSU: The supply pattern is undergoing changes, and there is an opportunity to increase the market share of domestic manufacturers. The surge in power of AI servers is driving the development of PSU towards high-density and high efficiency. For example, based on the physical diagram of the NVIDIA NVL72 rack, PSU is equipped with 120% redundant configuration to ensure peak power, leading to an unexpected increase in demand for PSU. Prices of high-power PSU also show upward elasticity. Currently, Taiwanese companies occupy a major market share in the server power industry. Shenzhen Megmeet Electrical, as the only mainland Chinese company currently cooperating with NVIDIA on server power supplies, has the potential to rise rapidly in the supply chain. BBU & supercapacitors: Safety in power supply is more important than cost sensitivity, and they are expected to shift from optional to mandatory. Currently, in the NVIDIA NVL72 with the GB200 GPU, BBU and supercapacitors play a critical role despite their small proportion in value. They help in solving peak power issues and provide backup power in extremely short times. With the launch of the GB300 and higher power racks in the future, the voltage fluctuations inside servers will increase. BBU is expected to transition from optional to mandatory, leading to a rapid increase in penetration rates. Lead-acid batteries: Limited expansion capacity + long certification cycles for downstream customers lead to a mismatch in supply and demand, continuing the balance of tight capacity and opening a price increase cycle. In recent years, under stricter environmental requirements, the industry has been gradually eliminating outdated production capacity while controlling new capacity. The rapid release of data center demand has highlighted the mismatch between supply and demand. In addition, the long certification cycle for downstream customers and delays in switching capacity have led to a continued balance in tight capacity, opening up the possibility of a price increase cycle. Market space and industry growth According to GF SEC's calculations, from 2025 to 2027, the global AIDC will add 15/24/32GW of power, with year-on-year growth rates of 183%/53%/35%. Based on a detailed breakdown of the AIDC electrical equipment industry chain, the composite growth rate of each link from 2024 to 2030 is ranked as HVDC > PSU > lead-acid battery > transformer, with corresponding composite growth rates of 97.8%/80.3%/51.0%/50.1%. The market size in 2025 is estimated to be approximately 22.3/290.4/81.0/80.6 billion yuan. Investment recommendations: For the HVDC/UPS sector, pay attention to Shenzhen Hopewind Electric (603063.SH), Hangzhou Zhongheng Electric (002364.SZ), Kehua Data Co., Ltd. (002335.SZ), Shijiazhuang Tonhe Electronics Technologies (300491.SZ), Shenzhen Kstar Science & Technology (002518.SZ) that are bound to leading domestic and international customers. For the PSU sector, focus on Shenzhen Megmeet Electrical (002851.SZ) in the NVIDIA supply chain, as a company leading in domestic market share.Companies like Honor Electronic (300870.SZ) are paying attention to the lead-acid battery sector, with a focus on Shandong Sacred Sun Power Sources (002580.SZ) and Zhejiang Narada Power Source (300068.SZ) that have already been certified by leading internet companies.Transformer sector focuses on Hainan Jinpan Smart Technology (688676.SH), Guangdong Mingyang Electric (301291.SZ), Eaglerise Electric & Electronic (002922.SZ), Qingdao TGOOD Electric (300001.SZ), etc. BBU/super capacitor sector focuses on Jiangsu Azure Corporation (002245.SZ), Nantong Jianghai Capacitor (002484.SZ), etc; SVG sector focuses on Shenzhen Sinexcel Electric (300693.SZ), etc. Diesel power generation sector focuses on domestic manufacturers such as Shanghai Cooltech Power (300153.SZ), Tellhow Sci-Tech (600590.SH) who have made breakthroughs from 0-1. Risk warning: Unexpected development of AI applications; fluctuations in downstream AIDC capital expenditures; fluctuations in supply chain prices; slower-than-expected expansion of market share by domestic manufacturers.