In Depth: China’s Power-Equipment Makers Ride AI Infrastructure Boom
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As the world races to build out artificial intelligence (AI) infrastructure, Chinese power-equipment makers are reaping an industrial windfall as gaps have opened in traditional supply chains.
From transformers to turbines and components, Chinese manufacturers are increasingly embedded in the global build-out of data centers. A surge in demand — driven by the U.S. and other economies racing to expand AI capacity — has lifted orders, boosted exports and propelled share prices across China’s power equipment sector.
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- Chinese power equipment makers fill global supply gaps for AI data centers, with 2025 exports up 26% to $37.4B; transformers (60% global capacity) and SSTs key drivers.
- Gas turbine demand surges; Chinese firms like Dongfang Electric export first heavy-duty units, stocks rise 140-290%.
- Advantages: 20-30% lower prices, faster delivery; barriers include trade restrictions, certifications, tech gaps in high-end markets.
1. Chinese power-equipment makers are benefiting from global AI infrastructure expansion, filling supply chain gaps in transformers, turbines, and components for data centers. Surging demand from the U.S. and others has boosted orders, exports, and share prices in China's sector [para. 1][para. 2].
2. Despite gains from shortages and cost advantages, Chinese firms face barriers in high-end markets due to certifications, geopolitics, and tech gaps [para. 3].
3. China's transformer industry has grown with AI boom; global demand exceeds supply due to data centers and aging Western grids, with top makers' deliveries past 2027. Chinese firms hold 60% global capacity; 2025 power equipment exports rose 26% to $37.4 billion, transformers at 41% [para. 5][para. 6][para. 7].
4. Solid-state transformers (SSTs) demand rises for efficiency in DC server systems, saving up to 30% energy lost in traditional AC conversions. Global SST market to grow 25-35% CAGR next decade, exceeding 100 billion yuan ($14.7B) by 2030. Chinese firms like Delta Greentech ramp up, targeting mass delivery by 2026 end; competition intensifies [para. 8][para. 9][para. 10][para. 11][para. 12].
5. Data center growth strains grids, with years-long connection waits in Europe/U.S., spurring self-sufficient gas-fired power. Global turbine deliveries to 2029-2030; Siemens Energy hit record 102 Q1 FY2026 orders, €146B ($172B) backlog. Big three (Siemens, GE Vernova, Mitsubishi) hold 80% market; GE backlog to 100GW by 2026 end, Mitsubishi orders doubled [para. 14][para. 15][para. 16][para. 17].
6. Supply crunch aids Chinese firms; Dongfang Electric shipped first heavy-duty turbines to Kazakhstan, stock up 290% HK/160% Shanghai. Smaller turbines win North America/India deals; Yantai Jereh signed $182M U.S. contract (4th since Nov), stock +140%. Component makers' stocks rose 40-310% [para. 18][para. 19][para. 20][para. 21][para. 22].
7. Chinese advantages: 20-30% lower prices, faster delivery, full services from industrial scale. Strong in emerging markets; Saudi Arabia fastest-growing/second-largest at 5.3% share in 2025 (up from 1.3% 2023) for solar/transmission. Others: Australia, Vietnam, Germany, Indonesia, India. U.S. top but down to 6.3% from 8.3% due to tariffs/security [para. 24][para. 25][para. 26][para. 27][para. 28].
8. Hurdles include trade barriers (U.S., India, Argentina restrict imports to protect locals), strict certifications (months-years, favoring U.S./Europe/Japan/Korea suppliers), and tech gaps in high-end like heavy-duty turbines [para. 29][para. 30][para. 31][para. 32][para. 33].
9. Optimism persists: global opportunities from North America to Africa [para. 34].
- Guosheng Securities Co. Ltd.
- **Guosheng Securities Co. Ltd.** research report forecasts the global solid-state transformer (SST) market to grow at a 25%-35% CAGR over the next decade, driven by AI data center demand. (24 words)
- SooChow Securities Co. Ltd.
- SooChow Securities Co. Ltd. forecasts the global solid-state transformer (SST) market could exceed 100 billion yuan ($14.7 billion) by 2030. (22 words)
- Delta Greentech (China) Co. Ltd.
- Delta Greentech (China) Co. Ltd., a Shanghai-based data center infrastructure provider, is boosting production capacity for solid-state transformers (SSTs). It expects mass delivery capability by end of 2026, per director Ye Xinping at the BNEF Summit in Beijing in March. (42 words)
- Siemens Energy AG
- Siemens Energy AG, a German power equipment giant, reported delivery timelines for gas turbines stretching to 2029-2030 due to surging data center demand. In Q1 FY2026 (Oct-Dec), it set a record with 102 orders, pushing its backlog to 146 billion euros ($172B) by end-2025. It controls ~80% of the global market with GE Vernova and Mitsubishi Heavy Industries.
- GE Vernova Inc.
- GE Vernova Inc., alongside Siemens Energy and Mitsubishi Heavy Industries Ltd., controls roughly 80% of the global gas turbine market. Its backlog is expected to reach 100 gigawatts by the end of 2026.
- Mitsubishi Heavy Industries Ltd.
- Mitsubishi Heavy Industries Ltd., alongside Siemens Energy and GE Vernova, controls roughly 80% of the global gas turbine market. It nearly doubled its orders in the first three quarters of 2025 amid surging data center demand, with delivery timelines stretching to 2029-2030, creating opportunities for Chinese competitors.
- Dongfang Electric Corp. Ltd.
- Dongfang Electric Corp. Ltd., a major domestic heavy-duty gas turbine player, shipped three Chinese-developed units to Kazakhstan in November—the first such export. Its stock surged over 290% in Hong Kong and 160% in Shanghai in the past year, fueled by AI data center power demand.
- Yantai Jereh Oilfield Services Group Co. Ltd.
- Yantai Jereh Oilfield Services Group Co. Ltd. (002353.SZ), based in Shandong, signed a $182 million gas turbine generator sales contract with a U.S. customer—the fourth with U.S. clients since November. Its stock price has risen over 140% since then, amid surging demand for gas turbines in data centers.
- Anhui Yingliu Electromechanical Co. Ltd.
- Anhui Yingliu Electromechanical Co. Ltd. (603308.SH) is a turbine component manufacturer. Investor interest in the gas turbine supply chain, fueled by data center power demand, has driven its stock to soar between 40% and 310% over the past year.
- Wedge Industrial Co. Ltd.
- Wedge Industrial Co. Ltd. (000534.SZ), a turbine component manufacturer, has seen its stock soar between approximately 40% and 310% over the past year, fueled by investor interest in the gas turbine supply chain amid surging data center power demands.
- Xi’an Triangle Defense Co. Ltd.
- Xi’an Triangle Defense Co. Ltd. (300775.SZ), a turbine component manufacturer, has seen its stock soar between 40% and 310% over the past year, driven by investor interest in the gas turbine supply chain amid surging data center power demand.
- Financial Street Securities Co. Ltd.
- Financial Street Securities Co. Ltd. analyst She Minhua states that Chinese manufacturers face technological gaps in high-end heavy-duty gas turbines, which remain dominated by Western and Japanese firms with superior high-temperature, efficient technology. (42 words)
- SoftBank
- SoftBank CEO Masayoshi Son announced a planned data center infrastructure project in Ohio, USA, on March 20, channeling $500 billion into a single campus. (24 words)
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