Soochow: HVDC will be the direction of the next generation of AIDC power supply. The power supply revolution will create a market worth billions.

Soochow released a research report stating that the application of high-voltage direct current distribution technology can help AIDC customers reduce system energy consumption, increase data center power density, and facilitate the coordinated development of green power and computing power. HVDC will be the direction for the next generation of AIDC power supply. As supply-side technologies and products gradually mature, the industry expects SST to begin mass production in the second half of 2027, and by 2029-2030, it is expected to gradually become the mainstream solution for external power supply cabinets in AIDC, with the global SST market expected to exceed 100 billion by 2030. Key points from Soochow: - High-voltage direct current distribution technology is the future direction of AIDC power supply. - Compared to traditional AC power supply, DC overcomes the "skin effect" of AC transmission, with advantages such as low transmission loss, low copper usage, and low investment in power supply lines. As AIDC moves towards high energy consumption and high power density with the improvement of computing chip performance in the future, the application of high-voltage direct current distribution technology can help AIDC customers reduce system energy consumption, increase data center power density, and facilitate the coordinated development of green power and computing power. HVDC will be the direction for the next generation of AIDC power supply. External HVDC power supply is imminent, with Panama expected to become mainstream, and SST being the ultimate solution. Based on UPS data center power supply architecture, which is essentially a product of traditional AC distribution system design standards, the external power supply is evolving towards high-voltage direct current technology, with slight differences between domestic and overseas products in terms of form and technical route. 1) The domestic application of external DC power sources in data centers began earlier. Currently, there are mainly two technological routes: modularized HVDC power supply of 240/336V and Panama power supply. The Panama power supply has high integration, significantly lower system CAPEX compared to UPS and HVDC solutions, with the system efficiency reaching up to 97.5%. CSPs centered around Ali and Tencent are expected to adopt Panama power supply in new AIDC constructions in 2026, with the penetration rate of HVDC solutions expected to quickly increase. The Panama power supply solution is expected to dominate the market. The industry expects the domestic HVDC market to exceed 800 billion by 2030, with a CAGR of approximately 122% from 2025 to 2030. 2) The core driving force behind overseas AIDC high-voltage DC is the 800V DC power needed for next-generation Rubin GPUs under NV. The industry expects overseas users to directly adopt the 800V solution. Compared to domestic solutions, overseas power supplies include the Sidecar solution, which has higher power density and integration compared to standalone power cabinets, but is more difficult to mass produce. Major players such as Delta and Shenzhen Megmeet Electrical are promoting 800V HVDC solutions. The penetration rate of overseas 800V HVDC solutions is expected to significantly increase in 2027. The industry believes that standalone power cabinet solutions will be applied in bulk before the Sidecar solutions. The industry expects the overseas HVDC market to exceed 140 billion by 2030, with a CAGR of approximately 170% from 2025 to 2030. 3) SST has eliminated the need for frequency-changing transformers and significantly improved volume and efficiency. The domestic industry is leading globally, with overseas CSPs proposing AIDC power distribution solutions based on SST. The industry expects HVDC technology to quickly converge with SST, and as supply-side technologies and products mature, SST is expected to begin mass production in the second half of 2027. By 2029-2030, it is expected to gradually become the mainstream solution for external power supply cabinets in AIDC, with the global SST market expected to exceed 100 billion by 2030. Domestically, HVDC and SST lead globally, with huge growth potential in cooperation for North American market entry. Downstream data center customers pay more attention to brands and quality, and the supply chain structure remains stable year-round. The industry expects the future overseas HVDC power supply market to maintain a similar competitive landscape. The progress of domestic HVDC power supply technology is significantly ahead of overseas developments. SST has rich experience in engineering applications in charging stations, DC microgrids, etc, that can achieve optimal technology and cost-effective solutions. Top international Tier 1 companies are actively seeking to cooperate with domestic companies on developing HVDC power supply and SST solutions. The industry believes that companies such as Shenzhen Kstar Science & Technology and Shenzhen Sinexcel Electric, which have long-term cooperation or OEM relationships with overseas power manufacturers, are poised to quickly enter the North American HVDC market. Companies like Sungrow Power Supply and Hainan Jinpan Smart Technology, which have overseas channels and expertise in power electronics, are likely to gain market share in North America through their own brands. Companies with SST technology advantages, such as Beijing Sifang Automation and For Photovoltaics, are expected to expand into North America through cooperation with top international Tier 1 companies. Domestic external power supply companies will ride the wave of AI development to achieve rapid growth. Investment recommendations: Key recommendations for comprehensive external power supply suppliers (SST+HVDC): Sungrow Power Supply, Hainan Jinpan Smart Technology. Key recommendations for HVDC power supply: Hangzhou Zhonhen Electric, Shenzhen Kstar Science & Technology, Kehua Data Co., Ltd., Shenzhen Sinexcel Electric, Shenzhen UUGreenPower, etc. Recommended to pay attention to Eaglerise Electric & Electronic, a leading manufacturer of phase-shifting transformers, and Shijiazhuang Tonhe Electronics Technologies, a rectifier module manufacturer. Key recommendations for SST: Beijing Sifang Automation, China XD Electric, etc. Recommended to pay attention to Newonder Special Electric, which specializes in core components like high-frequency transformers, Shenzhen JingQuanHua Electronics, Shenzhen Click Technology, etc. Risk Factors: End-customer bidding is below expectations, AIDC construction progress lags behind expectations, tariff policies are below expectations, intensified competition, etc.