A research report highlights that aging power grid infrastructure in Europe and the United States is elevating systemic risks, reinforcing a positive outlook on a new global cycle of power investment. According to the latest weekly token ranking data from OpenRouter, four of the top five AI models are Chinese—MiniMax, Kimi, Zhipu, and DeepSeek—indicating rapid growth in global usage of domestic large language models. Major internet companies are accelerating their international expansion, with domestic model providers partnering with global cloud service providers to deploy models on overseas nodes. This trend is expected to benefit Chinese electrical equipment manufacturers that have a strong international presence, established overseas production capacity, and stable partnerships with internet firms.
Key points from the report include: Aging power grids in Europe and the U.S. are increasingly exposed to systemic risks, with recent snowstorm warnings raising the likelihood of widespread blackouts. On January 25, 2026, over one million households in the U.S. experienced power outages, with outage rates exceeding 10% in Tennessee and Mississippi. On February 22, blizzard warnings were issued across 11 U.S. states, and Providence, Rhode Island, Mayor Brett Smiley warned that severe weather could lead to power disruptions affecting 100,000 to 150,000 households. These incidents underscore the urgent need for grid upgrades and support the view that a global wave of power infrastructure investment is underway.
China's cost advantage in electricity is becoming more pronounced as domestic AI models capture global market share, creating opportunities for the export of computational resources powered by Chinese electricity. Electricity costs can account for up to 40% of data center operating expenses. Many regions in Europe and the U.S. face challenges in securing affordable power, with average industrial electricity prices from 2023 to 2025 projected to be more than 50% higher than in China. The report suggests that China's well-developed power infrastructure allows domestic computing resources to leverage low-cost electricity for cross-border value delivery, thereby boosting domestic power consumption and demand for electrical equipment. At the same time, leading internet companies are expanding globally—for instance, Alibaba Cloud has announced new data centers in eight countries including Malaysia, while ByteDance plans to build facilities in Southeast Asia, Northern Europe, and South America. As domestic AI model providers collaborate with international cloud service providers and deploy models on overseas nodes, Chinese electrical equipment suppliers with deep overseas market experience, foreign production bases, and strong ties to internet giants are well-positioned to benefit.
Recommended companies include: - Guangdong Mingyang Electric Co.,Ltd. (301291.SZ), which has deep partnerships with leading domestic internet firms such as ByteDance and is expected to see a significant increase in overseas orders. - Hainan Jinpan Smart Technology Co.,Ltd. (688676.SH) and Eaglerise Electric&Electronic(China)Co.,Ltd. (002922.SZ), which have production facilities in the U.S., Mexico, and Southeast Asia and are experiencing rapid growth in AI data center (AIDC) orders. - Beijing Sifang Automation Co.,Ltd. (601126.SH), which is expanding into data center solid-state transformer (SST) solutions. - Other notable companies include Sieyuan Electric Co.,Ltd. (002028.SZ), Dongfang Electric Corporation Limited (600875.SH), China Xd Electric Co.,Ltd. (601179.SH), and WASION HOLDINGS (03393).
Potential risks include slower-than-expected capital expenditure in AIDC, changes in the global trade environment, and intensifying market competition.
Comments