Power Equipment 2026 Annual Investment Strategy

1. Core Conclusion: 2026 Marks the First Year of Global AIDC (AI Data Center) Mass Deployment, Industry Fundamentals Are Positive

• Global computing power demand is surging, data center construction is entering a high-growth phase. 2026 is expected to be the starting point for the mass deployment of global AIDC, with broad room for technological iteration across multiple segments of the industry chain. Maintain an industry "Recommended" rating.

2. Market Size: AIDC New Installations Grow Rapidly, Liquid Cooling Market to Break Through 100 Billion First

• The global AIDC new installation CAGR from 2023-2028 is projected to be as high as **40.4%**.
• The global AIDC liquid cooling market size is expected to exceed 100 billion yuan in 2026, with the Chinese market accounting for about 800 billion yuan, growing at a rate of up to 160%.

3. Power System: Upgrading Towards High Voltage and Integration, Mass Application of 800V HVDC Imminent

• External Cabinet Power: Evolving from traditional UPS to HVDC (High Voltage Direct Current), Panama Power, SST (Solid State Transformer), with continuous efficiency improvements.
• Core Trend: 800V HVDC is expected to begin mass application in 2026, compatible with NVIDIA's Rubin architecture, with a vast market potential (overseas/domestic CAGR from 2023-2028 projected at 128%/100%).
• Internal Cabinet Power: Iterating towards 8-12kW as server power consumption increases, adopting new technologies like SiC/GaN. GB300 standard includes BBU (Battery Backup Unit) and supercapacitors, contributing new growth.

4. Liquid Cooling System: Industrial Mass Deployment Imminent, Diversified Solutions, ASIC Chips Open New Space

• Necessity: Under high power density, liquid cooling becomes a necessity, with heat dissipation efficiency far exceeding air cooling.
• Technical Path: Cold plate (especially two-phase cold plate, micro-channel cold plate) is expected to be the first to see large-scale application; immersion cooling is the long-term direction.
• New Driver: Cloud vendors' self-developed ASIC chips (e.g., Google TPU) will significantly boost liquid cooling demand. Google's liquid cooling demand alone is projected to reach $24-30 billion in 2026.

5. Energy Storage System: Data Center Energy Storage Shifts from "Optional" to "Essential," Long-Duration Storage Applications Increase

• Core Logic: To smooth computing power fluctuations, ensure stable power supply, and participate in electricity markets, energy storage for data centers has become a rigid demand.
• Market Size: U.S. data center energy storage demand is projected to reach 22GWh in 2026 and 116GWh in 2030, with a CAGR of **62%** from 2025-2030.
• Technical Trend: Lithium batteries dominate, with 4-hour or longer duration storage configurations being more economical, and applications expected to accelerate.

6. Power Supply Side Innovation: North American Power Shortages Drive Increased Penetration of New Generation Methods Like SOFC (Solid Oxide Fuel Cell)

• Background: Tight supply of gas turbines in North America, imbalance between power supply and demand, increasing risk of blackouts.
• Solution: SOFC offers high generation efficiency, low carbon, and fuel flexibility, accelerating its application in data center scenarios. International leaders have secured GW-level orders, and domestic companies are accelerating their layout.

7. Investment Theme One: Power System

• Focus Areas: High Voltage Direct Current (HVDC) power supplies, server power supplies, BBU/supercapacitors.
• Companies to Watch: Jinpan International Technology Ltd., Eaglerise Electric & Electronic Co., Ltd., Liangxin Co., Ltd., KSTAR Science and Technology Co., Ltd., Kehua Data Co., Ltd., Shenzhen Sinexcel Electric Co., Ltd., Megmeet Electrical Co., Ltd., Oulute Electric Co., Ltd., Jianghai Capacitor Co., Ltd., etc.

8. Investment Theme Two: Liquid Cooling System

• Focus Areas: Cold plates, CDU (Coolant Distribution Unit), coolant, compressors, and other core components.
• Companies to Watch: Envicool Technology Co., Ltd., Shenling Environment Co., Ltd., Guangzhou Goaland Energy Conservation Tech Co., Ltd., Tongfei Co., Ltd., Kechuang New Material Co., Ltd., Speed Wireless Technology Co., Ltd., Yantai Moon Co., Ltd., etc.

9. Investment Theme Three: Energy Storage System

• Focus Areas: Energy storage cells, PCS (Power Conversion System), BMS (Battery Management System), system integration.
• Companies to Watch: Contemporary Amperex Technology Co., Limited (CATL), EVE Energy Co., Ltd., Sungrow Power Supply Co., Ltd., Canadian Solar Inc., Chint Power Systems Co., Ltd., etc.

10. Risk Warnings

Eight major risks require close attention:

1. Global data center construction progress falling short of expectations;
2. Downstream internet companies' capital expenditure falling short of expectations;
3. Downstream demand falling short of expectations;
4. Intensifying market competition;
5. Overseas market expansion falling short of expectations;
6. Raw material price fluctuations;
7. Policy and regulatory oversight (e.g., data security) exceeding expectations in various countries;
8. Rapid iteration of technology paths.

Summary:
The core logic of the report is: AI computing power demand explosion → Drives large-scale AIDC (AI Data Center) construction → Generates upgrade demand for more efficient, higher-density infrastructure. Investment opportunities unfold along the three core supporting segments of AIDC: "Power supply and distribution (power) → Heat dissipation (liquid cooling) → Energy security (storage)". Each segment faces clear technological iteration and market growth. 2026 is the critical point for industrial mass deployment. Domestic leading companies, leveraging their technological, cost, and delivery advantages, are poised to fully benefit from the global supply chain.