A recent industry research report on China's cloud and data center sector, released on May 3, 2026, highlights a significantly optimistic demand outlook, suggesting the market has underestimated the current industry upcycle. Based on field visits and exchanges with leading domestic data center operators and emerging cloud providers, the report indicates that the computing power leasing market has clearly exhibited characteristics of a seller's market. Supply chain capabilities have become a core competitive barrier for providers. To secure computing capacity, customers are willing to offer more favorable contract terms, including accepting higher pricing to expand supplier profit margins and making advance payments. To manage operational risks, computing power leasing firms typically require customers to sign leasing contracts covering the entire equipment lifecycle.
Although several domestic cloud providers have officially announced price increases, the implementation of these hikes will be a gradual process. The pace of adoption depends on the scale of new contracts and the renewal status of existing agreements. Since most contracts in the industry have a one-year cycle, the majority of the revenue benefits from this round of price increases are expected to materialize during 2026.
Separate analysis points to an inflection point in AI inference demand, suggesting that computing power leasing is entering a high-growth cycle characterized by rising volume and prices. This segment is viewed as a core sector within the AI industry chain with strong visibility. The cloud industry chain is also seen as entering a cycle of simultaneous volume and price growth, driven by robust demand. In the computing power leasing space, tight supply of high-quality computing chips is strengthening the market position of leading leasing providers. Higher operational leverage is believed to enhance the certainty of their rapid growth. Attention is recommended on companies related to the cloud industry chain and computing power leasing.
Relevant Hong Kong-listed concepts related to cloud providers and computing power leasing include: GD-HKGBA HLDGS (01396): The company has completed the acquisition of Tiandun Data, achieving a business reorganization. Shenzhen Tiandun Data Technology Co., Ltd. is a top-tier intelligent computing infrastructure operator in China and was among the earliest companies to develop third-party data centers compliant with national Class A standards. It offers full lifecycle "Green Energy Intelligent Computing" services. It operates over 30,000 racks nationwide with a total computing power scale exceeding 50,000 P. Since its establishment, Tiandun Data has sustained rapid revenue growth, reaching 174 million yuan in the first quarter of 2025. It currently holds an order book exceeding 10 billion yuan and has initiated a "dual-market development strategy" targeting both domestic and international markets. Future plans include building multiple intelligent computing data centers overseas. WEICHAI POWER (02338): The company reported year-on-year and quarter-on-quarter growth in its first-quarter results, with profit growth outpacing revenue growth. Sales of large-bore engines exceeded 3,000 units in the quarter, a 21% increase year-on-year. Notably, sales of large-bore engines for data centers surged to over 500 units, representing growth of more than 240% year-on-year. The delivery pace has accelerated significantly, and shipments are expected to maintain rapid growth in the coming quarters.
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