The rapid development of AIDC (AI Data Centers) is driving sustained growth in electricity demand, with trends toward large-scale, high-power-density, and high-energy-consumption facilities. SemiAnalysis projects that U.S. data center power consumption will surge from 196TWh in 2023 to 672TWh by 2028, increasing its share of total electricity usage from 4.5% to 14.6%.
Additionally, the surge in AIDC demand has tightened natural gas turbine supply in North America, exacerbating power supply-demand imbalances and raising blackout risks. This scenario is expected to boost the share of renewable energy generation. Given economic and grid stability considerations, energy storage deployment is poised for sustained growth. Investment opportunities are recommended in both data center infrastructure and power generation sectors.
Key insights from Sealand Securities include:
**Data Center Boom Elevates Power Stability Requirements** In 2024, combined CAPEX growth for North America’s four major cloud providers (Amazon, Microsoft, Google, Meta) and China’s Alibaba and Tencent Holdings reached 57% and 169% year-on-year, respectively, with further increases anticipated in 2025, marking a global AIDC construction milestone. However, the concentrated development of AI data centers in North America—coupled with AIDC load volatility being 10 times that of traditional IDCs—may strain regional grids.
**Energy Storage Shifts from Optional to Essential** Energy storage demand for data centers spans power generation and facility-level applications: 1) **Facility-Level**: Rising AIDC rack power density and load volatility necessitate battery energy storage systems (BESS) to stabilize fluctuations. Energy storage also enhances responsiveness for on-site power plants (e.g., gas turbines/SMRs/SOFCs). Backup solutions like BBUs and supercapacitors offer rapid power response, creating incremental demand. 2) **Power Generation**: Declining LCOE for solar-plus-storage ($50–131/MWh) and gas turbine supply shortages are expected to accelerate renewable energy adoption.
**Expansive Market Potential** Frost & Sullivan forecasts global and China’s data center energy storage markets will reach 212GWh and 98.8GWh by 2030, respectively, with a 49% CAGR (2023–2030). Sealand Securities estimates U.S. facility-level storage demand will grow from 11GWh in 2025 to 116GWh by 2030 (62% CAGR).
**Stock Picks**: 1) **CATL (300750.SZ)**: Industry leader in lithium batteries, expanding global capacity to capture storage-driven growth. 2) **EVE Energy (300014.SZ)**: Forward-looking storage solutions, offering comprehensive AIDC backup systems. 3) **Sungrow (300274.SZ)**: Strong storage growth, leveraging power electronics to advance HVDC/SST power solutions. 4) **Canadian Solar (688472.SH)**: Steady operations, excelling in high-quality solar + storage for data centers. 5) **Torin Equipment (002150.SZ)**: Focused on high-margin markets, accelerating U.S. inverter replacement and storage system expansion.
**Risks**: Slower-than-expected data center construction; subdued capex from internet firms; intensifying competition; overseas expansion hurdles; raw material volatility; data security regulations; underperformance of highlighted companies.
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