China Galaxy Securities: The inclusion of algorithmic collaboration in the new infrastructure project has boosted the vitality of IDC computing power.

China Galaxy Securities released a research report stating that the government work report in 2026 will include "computing-electricity synergy" as part of the new infrastructure construction. From a national strategic perspective, the core of computing-electricity synergy is to transform the industrial advantage of China's power system into a competitive advantage in the digital economy. Currently, the cost and constraints of data centers are increasingly focused on two things: whether electricity prices are expensive and whether energy efficiency is high. "Computing-electricity synergy" is expected to expand the model of AIDC/IDC from cabinet rental and heavy asset property operation to a composite infrastructure platform model of "power resources + computing power delivery + energy operation". The main points of China Galaxy Securities are as follows: The 2026 government work report will include "computing-electricity synergy" in the new infrastructure construction "Computing-electricity synergy" refers to deeply integrating computing power infrastructure with the power system through digitization and intelligent technology, achieving bidirectional interaction and optimized allocation of computing power load and power supply. The IT energy consumption of China's AIDC is expected to reach 77.7 terawatt-hours in 2025, and will increase to 146.2 terawatt-hours in 2027, putting increasing pressure on the power supply side. "Computing-electricity synergy" is reflected in two aspects: "electricity support computing", which provides stable, low-cost, and zero-carbon electricity guarantee for computing centers through methods such as green electricity supply and integrated source-network-load storage; and "computing optimized electricity", which uses AI algorithms and big data analysis to predict fluctuations in renewable energy generation, real-time control of computing power loads, transforming data centers from simple electricity consumers to flexible regulatory resources of the power system, participating in peak shaving, frequency regulation and other ancillary services through forms such as virtual power plants. From a national strategic perspective, the core of computing-electricity synergy is to transform the industrial advantage of China's power system into a competitive advantage in the digital economy. As computing power demand rises, electricity has become one of the core operational variables of AIDC Currently, the cost and constraints of data centers are increasingly focused on two things: whether electricity prices are expensive and whether energy efficiency is high. "Computing-electricity synergy" is expected to expand the model of AIDC/IDC from cabinet rental and heavy asset property operation to a model of 'power resources + computing power delivery + energy operation' combined infrastructure platform. China Galaxy Securities believes that enterprises that are expected to benefit from the development of "computing-electricity synergy" should have the following characteristics: scarce energy consumption/land/node resource reserves, proximity to national computing hubs or core demand areas, the ability to access green electricity and efficient power supply and distribution capacity, the ability to accept high-power density AIDC, energy-saving capabilities such as liquid cooling/HVDC/UPS/energy storage, or the ability to operate computing power scheduling/smart cloud operations, etc. In this framework, the directions worth focusing on in the communications industry are mainly AIDC/IDC operators and companies providing liquid cooling and energy-saving support. Computing-electricity synergy opens up a multi-dimensional cost reduction path for IDC, restructuring the cost curve of green electricity trading and energy efficiency management Firstly, computing power follows low-cost green electricity to directly reduce electricity costs; secondly, tasks are dispatched according to electricity prices and green electricity fluctuations, reducing electricity consumption in high-price periods; thirdly, by means of liquid cooling, AI energy management, etc. to reduce PUE, reduce non-IT energy consumption; fourthly, participate in green electricity trading, ancillary services and virtual power plants, shifting some electricity consumption from rigid cost centers to flexible value centers. Taking RunJian Co., Ltd. as an example, the Five Elephants Cloud Valley Intelligent Computing Center built by the company is the highest-level and largest-scale Intelligent Computing Center in Guangxi as of today. At the same time, relying on the technical heritage and accumulation of the power industry, the company has comprehensively laid out the energy network, and built a full-process technical service capability of "power generation-transmission-distribution-energy storage-electricity consumption-cloud services", which is expected to maintain a leading position in the construction of a new power system and the achievement of dual carbon goals. Investment Recommendations Companies that deeply layout at the "East Number West Calculation" hub nodes or have green energy resources in AIDC/IDC services; and data center infrastructure suppliers that can provide efficient, stable, green power supply and distribution, as well as temperature control solutions are expected to benefit from the development of "computing-electricity synergy". AIDC related targets: RunJian Co., Ltd. (002929.SZ), Shanghai AtHub (603881.SH), Range Intelligent Computing Technology Group (300442.SZ), Beijing Sinnet Technology (300383.SZ), etc.; Optical module-related targets: Zhongji Innolight (300308.SZ), Eoptolink Technology Inc. (300502.SZ), Linktel Technologies (301205.SZ), etc.; Optical fiber cable-related targets: Yangtze Optical Fiber And Cable Joint Stock (601869.SH), Hengtong Optic-Electric (600487.SH), Jiangsu Zhongtian Technology (600522.SH), etc.; Liquid cooling-related targets: Shenzhen Envicool Technology (002837.SZ), etc. Risk Warning The risk of AIGC application promotion falling below expectations; the uncertainty risk of domestic and foreign policy and technology frictions; the risk of intensified competition in the computing industry, etc.