Galaxy Securities: Green Power and Computing Power are expected to achieve mutual benefit and win-win cooperation, and the value of green power is expected to be reassessed.

Galaxy Securities research report states that the rapid growth of computing power demand is driving the increase in electricity consumption. China's data center electricity consumption is expected to increase from 130 billion kwh in 2022 to 196 billion kwh in 2025, with the proportion of total social electricity consumption rising from 1.5% to 1.9%. Looking ahead, it is estimated that data center electricity consumption will exceed 700 billion kwh by 2030, accounting for more than 5% of total social electricity consumption. The coordinated development of green power and computing power is expected to achieve mutual benefits. The coordination of power and computing is included in the "14th Five-Year Plan", and policies will encourage the use of green electricity. In terms of data centers, using green electricity not only meets policy requirements, but also is expected to achieve cost savings in electricity consumption. This is partly due to the lower cost and price advantages of green electricity compared to thermal power, and partly due to the introduction of policies promoting direct connection to green electricity. For power generation companies, new energy or coordinated development of power and computing is the most beneficial trend. Power companies are gradually establishing a strategy for coordinated development of power and computing. Currently, many power generation companies have been making arrangements for the coordination of power and computing, which can be divided into two categories: directly entering the data center competition, creating a second growth curve; and providing support for data centers by developing power projects, which expands the profit model of existing power generation business.