Industry boom! Power grid equipment continues to surge. Will global investment reach $620 billion by 2030?

Power grid equipment rebounded again in the morning session on February 26, reaching a new all-time high. Among individual stocks, Beijing Kerey, Shena Power, Hangdian Shares, and Xinlian Electronics hit the daily limit; Zhiyang Innovation and Tongguang Cable surged over 10%.

In the view of market participants, the continued strength of power grid equipment is closely related to artificial intelligence. As AI technology accelerates its evolution, the consensus in the tech industry is that “the limit of computing power is electricity.” From the AI red envelopes during the intensive coverage of the Year of the Horse Spring Festival to AI interactions on the Spring Festival Gala, behind these tech hotspots is the stable and efficient support of electrical infrastructure. As AI computing power demand surges and AI develops rapidly, power grid equipment, as the “electricity foundation” supporting technological progress, has been elevated to a new level of importance.

High Growth in AI Power Demand

Data shows that the electricity demand in the AI field, especially AI data centers, is indeed astonishing. According to IEA data, global data center electricity consumption is about 415 TWh in 2024, expected to rise to 945 TWh by 2030, with an average annual growth rate of about 15%. IEA predicts that by 2030, the US and China may account for 80% of the world’s data center electricity demand. Compared to 2024, US data center electricity use could increase by 240 TWh (+130%), China by 175 TWh (+170%), Europe by 45 TWh (+70%), and Japan by 15 TWh (+80%).

Trump Also “Getting Worried”

This surge in electricity demand has already become somewhat “overburdening” for countries like the US. According to Cailian Press, during the State of the Union address on Tuesday night, US President Trump issued new “guidelines” for leading data center and AI companies: self-supply electricity, pay out of pocket.

Next week, major tech companies will meet with President Trump at the White House to sign related commitments. A White House official confirmed that Amazon, Google, Meta, Microsoft, xAI, Oracle, and OpenAI will sign agreements during the meeting on March 4 local time. This move is the latest effort by President Trump to protect consumers from rising electricity costs.

White House spokesperson Taylor Rogers stated, “Under this bold plan, these large companies will build, introduce, or purchase their own power supplies for new AI data centers, ensuring that as demand grows, Americans’ electricity bills do not increase.”

Robust Investment in Power Grid

It is precisely this new demand from AI, combined with the need for renewal due to aging infrastructure in Europe, America, and other regions, that drives strong global demand for power grid equipment and steady investment growth.

According to IEA data, since 2020, global power grid investments have grown rapidly, reaching about $330 billion in 2023, and increasing to $390 billion in 2024, with projections exceeding $400 billion in 2025. Regionally, investments in China, North America, and Europe have all shown upward trends since 2020.

Under the APS scenario (announced commitment scenario), IEA forecasts that from 2023 to 2030, the global annual investment in power grids will grow at a compound annual rate of 9.4%, reaching further to $620 billion by 2030.

China’s power grid equipment exports continue to grow strongly, indirectly confirming this trend. According to General Administration of Customs data, the total transformer exports in 2025 reached $9.036 billion, with a cumulative growth of 34.83%, setting a new record high. In December 2025, among key electrical equipment exports, transformers, cables, copper wound wires, low-voltage switches, and insulators saw month-on-month increases of 31.92%, 22.20%, 11.71%, 10.60%, and 31.91%, respectively, showing a high-growth trend across multiple product categories.

Frequent Domestic Policy Support

Looking domestically, the power grid equipment sector also benefits from policy opportunities. In September 2025, the Ministry of Industry and Information Technology and two other departments jointly issued the “Work Plan for Stabilizing Growth in the Electric Power Equipment Industry (2025–2026),” which explicitly emphasizes expanding domestic demand and actively exploring international markets.

Regarding power grid investment, during the 14th Five-Year Plan, State Grid Corporation of China’s investment is expected to reach 4 trillion yuan, a 40% increase over the 13th Five-Year Plan. Specific investments include accelerating the construction of backbone and distribution networks as essential infrastructure, supplementing with smart microgrids; speeding up the construction of ultra-high-voltage direct current transmission channels; and promoting technological breakthroughs in key core technologies of new power system industry chains to achieve full independence and control.

Top 20 Performance Forecasts

Against this background, according to institutional forecasts, many power grid stocks are expected to see high growth. Kelu Electronic’s 2026 performance is projected to increase by 544.53% year-on-year. Wteng Electric is expected to grow by 157.63%, Taihu Yuanda by 137.5%. Xinte Electric, Yuan Dong Shares, Huadong Cable, Shuangjie Electric, Jinpan Technology, Guangxin Technology, and Wangbian Electric are also expected to exceed 50%.

Among these stocks, Yuan Dong Shares, Wangbian Electric, Xinte Electric, and Kelu Electronic saw net financing purchases exceeding 10 million yuan in February. As of February 25, these stocks—Yuan Dong Shares, Shuangjie Electric, Wangbian Electric, XinFengGuang, Huadong Cable, Jiangsu Huachen, and Xinte Electric—have risen significantly since 2026, with increases exceeding 30%.

Looking ahead to 2026, Founder Securities states that the AI data center industry will remain highly prosperous. On one hand, major domestic and international internet companies’ capital expenditure plans generally show high growth expectations; on the other hand, overseas leading power equipment manufacturers have performed well, reflecting high industry growth in their earnings.

From the perspective of industry chain beneficiaries, Yuan Shuai, Deputy Director of Investment at China Urban Development Research Institute, said that companies providing power supply and distribution equipment directly to data centers will be the first to see increased orders; technology service companies in fields like smart grids, energy storage systems, and power dispatching will also benefit as grid automation deepens.

(Source: Oriental Wealth Research Center)