Huatai Securities: U.S. leads the way in AI infrastructure investment with $80 billion nuclear power investment.

Huatai Securities pointed out that the US and Japan jointly support power infrastructure with a $550 billion investment, led by Westinghouse's $80 billion investment in nuclear power. We reiterate that AI narrative will further accelerate the construction of the US power system. On the demand side, the demand for data center interconnection in the US is growing rapidly, and the main trend of power shortage and grid expansion in the US continues. On the supply side, the $550 billion US-Japan investment framework covers base-load power sources, grid equipment, on-site power sources, backup power sources, energy storage, and in-wall power sources in the full process of AI power infrastructure. In terms of construction pace, we predict that the US will postpone the retirement of coal-fired power plants in the short term, increase the deployment of solar storage SOFC, comprehensively build large gas turbines in the medium term, and construct nuclear power plants in the long term. We believe that various sub-sectors of the new electricity sector have great potential during this process.