Zhongjin: The contradiction between supply and demand in overseas electricity is prominent, and Chinese manufacturers are welcoming an accelerated period of going global.

Zhongjin released a research report stating that overseas data centers are facing the dilemma of "difficulty in finding electricity," with queue times in congested areas of the power grid in Europe and the United States exceeding 7 years. It is observed that the capacity of the power grid is determining the flow of funds, with large developers focusing on Northern Europe, Southern Europe, and emerging markets. At the same time, in some regions of the US and European FLAP-D markets, self-supplied power is shifting from optional to mandatory, with various new power supply solutions being explored simultaneously. The contradiction between supply and demand overseas is prominent, and Chinese manufacturers are seizing the opportunity to accelerate their overseas expansion to capture highly elastic market opportunities. Key points raised by Zhongjin include: Power supply side: On-site power supply is the trend, with breakthroughs in independent gas turbine exports. Gas turbines are the mainstream solution for on-site power supply, with global gas turbine orders and prices expected to rise in 2025. However, leading overseas manufacturers are facing supply shortages, with delivery times of over 3 years, making it difficult to meet the rapidly growing demand for power supply. This presents a market breakthrough opportunity for Chinese turbine manufacturers, with leading company Dongfang Electric Corporation achieving its first export of the G50 gas turbine last year. Additionally, various forms such as SOFC, SMR, and geothermal systems each have their own characteristics. It is believed that the combination of "self-supplied power + power grid" is a viable direction for the future. Power grid side: Global power cycle, with high growth in Chinese transformer exports. With the scale of AIDC increasing to the hundred-megawatt level and requiring dedicated substations at high voltage levels, delays in approvals and other factors have constrained the effective development of power transmission in Europe and the United States. There is a supply gap in core equipment such as transformers. In 2025, the export amount of Chinese transformers reached a record high, and it is anticipated that Chinese enterprises with a complete industrial chain and fast delivery capabilities will continue to open up the market. Data center side: SST is expected to help AIDC achieve grid-friendly operations. On one hand, SST is suitable for coordinated electricity and algorithm scenarios, and can work with energy storage systems to provide grid peak shaving and frequency control services, enabling flexible and interactive grid operations. On the other hand, SST relies on power electronic technology for rapid response and active control, mitigating the impact on the grid during AI model training. It is believed that Chinese manufacturers with strong grid understanding and market channel capabilities have the potential to stand out. Risks: - AIDC development falls short of expectations - Changes in international trade policies - Changes in new technology routes.