The explosive growth in AI computing power demand is driving a global upgrade in power grid investment. As the main artery of energy transmission, the ultra-high voltage (UHV) sector is experiencing a period of high prosperity across its industrial chain.
The explosive growth in AI computing power demand presents an unprecedented challenge to global energy infrastructure. According to data from the International Energy Agency, global data center electricity consumption is increasing at an annual rate of 12% and is expected to reach 945 TWh by 2030. Large AI data centers can consume up to 2 GWh of electricity annually, equivalent to the total electricity usage of tens of thousands of households. To meet the energy demands of data centers, further strengthening power grid construction has become a consensus both domestically and internationally, which includes UHV technology capable of long-distance power transmission. Against this backdrop of clear expectations, several companies in the UHV concept sector have won bids in tender activities organized by State Grid and China Southern Power Grid.
Global power grid investment is continuously increasing. Currently, the global computing industry is in a phase of rapid growth. According to calculations by the China Academy of Information and Communications Technology, global computing power is expected to exceed 16 ZettaFLOPS by 2030. Intelligent computing power, primarily driven by AI training and inference workloads, has become a key growth engine, accounting for over 30% of the total computing power scale. Furthermore, according to Fortune Business Insights, the global data center market size will grow from USD 242.72 billion in 2024 to USD 584.86 billion in 2032, with a compound annual growth rate of 11.62%.
Supporting the rapid growth of the data center market is massive electricity consumption. Public information shows that a typical AI data center can consume 1.5–2 GWh of electricity per year, equivalent to the total usage of tens of thousands of households; whereas hyperscale projects often operate at "Gigawatt (GW)" level power – 1 GW is roughly equivalent to the continuous output capacity of a large nuclear power plant. According to the International Energy Agency's report "Energy and Artificial Intelligence," over the past five years, the proportion of global electricity consumption attributed to data centers has increased at an annual rate of 12%. At the current rate, by 2030, the global electricity demand from data centers will more than double, reaching approximately 945 TWh per year.
The sharp increase in data center power demand is accelerating global power grid construction. The United States, with its vast number of data centers, launched a "Nuclear Energy Revival Plan" in May 2025, planning to build 10 new large reactors by 2030. The European Union also announced a grid upgrade package on December 10, planning to invest 1.2 trillion euros in grid construction by 2040, of which 730 billion euros will be for distribution network construction and 240 billion euros for hydrogen energy network construction.
Compared to actions in Europe and the US, China has been at the forefront of grid construction, with investment consistently maintained above 500 billion yuan. Public information indicates that combined investment by State Grid and China Southern Power Grid exceeded 600 billion yuan in 2024 and is expected to surpass 825 billion yuan in 2025. Huatai Securities noted in a recent research report that grid investment during the "16th Five-Year Plan" period (2026-2030) is expected to exceed 4 trillion yuan, significantly higher than the 2.8 trillion yuan invested during the "14th Five-Year Plan" period (2021-2025).
Domestic UHV construction has entered an acceleration phase. Many companies have announced winning bids. It is worth mentioning that electricity consumption by data centers in China is growing at an average annual rate of 20%, far exceeding the growth rate of overall societal electricity consumption. According to predictions from the China Academy of Information and Communications Technology, by 2030, China's data center electricity consumption will reach 400 billion kWh, with its share of total societal electricity consumption rising from the current less than 2% to 6%. Against this backdrop, the importance of vigorously enhancing UHV grid construction becomes prominent.
Public information shows that since 2025, State Grid has successively completed and put into operation four UHV DC projects: Longdong to Shandong, Hami to Chongqing, Ningxia to Hunan, and Jinshang to Hubei, further densifying the national energy transmission network for "West-to-East Power Transmission and North-to-South Power Supply." To date, State Grid has cumulatively built and put into operation 42 UHV projects, comprising "22 AC and 20 DC," with inter-regional and inter-provincial power transmission capacity reaching 370 million kilowatts.
Amid the明显 acceleration of domestic grid construction, State Grid and China Southern Power Grid have conducted multiple rounds of tender activities within the year, with many UHV companies being pre-qualified or winning bids. Taking Jiangsu Tongguang Electronic Wire&Cable Co.,Ltd. as an example, its pre-qualification announcement released on November 3 revealed that the company recently participated in "State Grid Corporation's 2025 65th Batch Procurement" and pre-qualified with an amount of 137.8 million yuan. The company stated, "This bid amount accounts for approximately 5.31% of the total operating revenue audited for 2024. This win is expected to have a positive impact on the company's future operating performance."
In fact, Jiangsu Tongguang Electronic Wire&Cable Co.,Ltd. has issued similar announcements multiple times this year, on January 13, March 6, March 11, April 30, May 28, July 14, and August 29.
Besides Jiangsu Tongguang Electronic Wire&Cable Co.,Ltd., companies such as China XD Electric, Pinggao Electric, XJ Electric, and Han Cable Co., Ltd. have also announced pre-qualifications or wins in State Grid and China Southern Power Grid tender activities multiple times during the year. For instance, China XD Electric issued winning bid announcements on January 22, March 12, July 16, September 24, November 29, and December 17 this year, with a total bid amount exceeding 2.9 billion yuan. In the December 17 announcement, China XD Electric stated that four of its subsidiaries won bids in the project for the Southeast Tibet to Guangdong-Hong Kong-Macao Greater Bay Area ±800 kV UHV DC transmission project, securing products like converter valves, transformers, bushings, and capacitors, with a total bid amount of 1.00505 billion yuan. The company's annual operating revenue for 2024 was 22.17478 billion yuan.
Pinggao Electric issued winning bid announcements on January 22, March 12, May 9, July 17, September 24, November 8, and November 29. In its November 29 announcement, it stated that in State Grid's 2025 64th Batch Procurement, the company and its subsidiaries won bids totaling approximately 773 million yuan, accounting for 6.24% of the 2024 operating revenue. "The fulfillment of the related contracts after signing will have a positive impact on the company's future business development."
Besides the aforementioned companies, others like Sieyuan Electric, Hongfa Electronics, and Baobian Electric have also disclosed bid wins in investor activity records or financial reports. For example, Sieyuan Electric revealed during an investor relations activity on August 20, "We won a bid for a State Grid 750kV project in 2025, with some equipment delivered before the end of June. We strive to reward customers with excellent delivery." Hongfa Electronics disclosed in its investor activity record released on November 3, "Our subsidiary Xiamen Hongfa Electric successfully won the framework bid for China Energy Engineering Corporation's 2025 centralized procurement of medium and low-voltage switchgear... Additionally, the company entered a strategic cooperation with Jinan Steel Group, successfully signing a contract for the 'Jinan Steel 1.2 million ton pelletizing low-voltage power distribution system project,' achieving an important breakthrough in the steel industry's power distribution system field."
The performance of UHV companies continues to improve. Precisely because of the ongoing advancement in domestic UHV outbound transmission channels and regional main grid construction, the fundamentals of many UHV companies have明显 improved during the year. According to Wind data, the 35 constituent companies in the UHV sector achieved a combined operating revenue of 416.046 billion yuan and a net profit attributable to shareholders of 24.568 billion yuan in the first three quarters of this year. Compared to the combined revenue of 394.462 billion yuan and net profit of 23.926 billion yuan in the same period last year, this represents year-on-year growth of 5.47% and 2.68%, respectively. At the individual company level, 25 companies achieved revenue growth, and 23 companies achieved growth in net profit attributable to shareholders.
Among the companies achieving revenue growth, Baoding Tianwei Baobian Electric Co.,Ltd., Tongda Wire & Cable, Sieyuan Electric, and Zhiguang Electric all saw revenue growth rates exceeding 30% in the first three quarters, reaching 41.90%, 40.78%, 32.86%, and 32.03%, respectively. Among companies achieving growth in net profit, Far East Smarter Energy and Guodian Nanjing Automation saw the highest growth rates, reaching 268.86% and 100.86%, respectively. Additionally, Tongda Wire & Cable, Baoding Tianwei Baobian Electric Co.,Ltd., Zhongyuan Electric, Zhiguang Electric, and State Grid Yingda also saw profit growth rates exceeding 50%.
As a company with relatively fast revenue growth in the UHV sector, Baoding Tianwei Baobian Electric Co.,Ltd. also performed well in the first three quarters of this year, with net profit increasing by 72.91% year-on-year. Regarding the performance in the first three quarters, the company stated in its Q3 report that revenue growth was mainly "due to increased product orders won by the company, which were gradually realized as sales during this period." The profit growth was "mainly due to a significant year-on-year increase in operating revenue driving profit growth, as well as gains from the transfer of equity in Baobian Shares-Atlanta Transformer India Co., Ltd." After the Q3 report was released, Baoding Tianwei Baobian Electric Co.,Ltd.'s stock price performed notably, rising 46.57% between October 28 (the report release date) and November 13, once leading gains in the UHV sector.
Recently, Baoding Tianwei Baobian Electric Co.,Ltd. held its 41st meeting of the 8th Board of Directors, reviewing and approving the "Proposal on Using Capital Reserve to Cover Losses." The company plans to use its parent company's surplus reserve and capital reserve to cover accumulated annual losses of the parent company. According to the audit report issued by Beijing Guofu Accounting Firm, as of December 31, 2024, the accumulated undistributed profit in the parent company's financial statements was -5,449,668,770.31 yuan. After covering losses with the reserve, the parent company's undistributed profit as of December 31, 2024, will become -1,149,370,994.76 yuan.
Baoding Tianwei Baobian Electric Co.,Ltd. pointed out in the announcement that by implementing this capital reserve plan to cover losses, the company will effectively improve its equity structure, reduce the burden of historical losses, further promote compliance with profit distribution conditions stipulated by laws, regulations, and the company's articles of association, enhance its ability to provide returns to investors, and achieve high-quality development. On the third day after the announcement (December 12), the company's stock price hit the daily limit-up.
In the fourth quarter of this year, Hainan Jinpan Smart Technology Co.,Ltd., Beijing Sifang Automation Co.,Ltd., and Jiangsu Tongguang Electronic Wire&Cable Co.,Ltd. were the three UHV companies with strong market performance. As of December 22, the three companies' stock prices had risen by 69.58%, 49.98%, and 48.63%, respectively. Looking at their full-year performance, they rose by 120%, 86%, and 66%, respectively.
According to listed companies' Q3 report data, the net profit attributable to shareholders of Hainan Jinpan Smart Technology Co.,Ltd. and Beijing Sifang Automation Co.,Ltd. increased by 20.27% and 15.57% year-on-year in the first three quarters, respectively, while that of Jiangsu Tongguang Electronic Wire&Cable Co.,Ltd. decreased by 38.19% year-on-year. It is worth noting that although Jiangsu Tongguang Electronic Wire&Cable Co.,Ltd.'s performance declined in the first three quarters, looking at its quarterly performance, it still achieved a 73.7% year-on-year increase and a 19.31% quarter-on-quarter increase in net profit attributable to shareholders in the third quarter.
During the Q3 performance briefing, besides explaining its own performance, Hainan Jinpan Smart Technology Co.,Ltd. also commented on the progress of its power module business domestically and in North America, as well as its outlook for next year: "The company is closely seizing market opportunities and fully expanding its business layout in the AI data center field. From January to September 2025, the company achieved sales revenue of 974 million yuan in the AIDC and IDC data center fields, a year-on-year increase of 337.47%. With the rapid development of artificial intelligence technology, computing power demand is experiencing explosive growth,随之而来的是对电力与能源基础设施的更高要求。"
In response to institutional questions about "whether the company has the capability to provide full power supply solutions for downstream AIDC business customers," Hainan Jinpan Smart Technology Co.,Ltd. stated, "In the data center field, the company focuses on the core requirements of AIDC for 'high reliability and high energy efficiency' in power equipment: on one hand, it consolidates its existing advantages in transformer product lines and increases the expansion of existing data center power module products such as intelligent integrated power成套装置 and intelligent flexible connection power modules; on the other hand, it proactively布局新型供电架构研发, having successfully developed a 10kV/2.4MW solid-state transformer prototype suitable for the HVDC800V power supply architecture, and is布局研发迭代电力转换装置及供电架构, initially forming a relatively complete product sequence and strong comprehensive solution provision capability. With the accelerated construction of global AIDCs, the company is expected to gain more market share in the AIDC field."
Beijing Sifang Automation Co.,Ltd. is a longstanding leader in domestic power automation equipment, with leading solid-state transformer technology. It is one of the few domestic manufacturers capable of providing key primary and secondary equipment, technology, and complete solutions for data center AC/DC power distribution systems. According to institutional research report data, in the first four batches of State Grid's main network protection equipment tenders this year, Beijing Sifang Automation Co.,Ltd. won bids totaling approximately 681 million yuan, a year-on-year increase of about 50%. Beijing Sifang Automation Co.,Ltd. mentioned the current order execution situation in recent institutional research: "As of the third quarter, the company's newly signed orders maintained good growth momentum, and the annual target for newly signed orders is progressing steadily."
Accelerating "Going Global" to Boost Performance Growth Against the backdrop of strengthened grid construction both domestically and internationally, besides tapping into domestic market potential, actively expanding into overseas markets has also become an important guarantee for revenue growth for many UHV companies.
According to Wind data, among the 35 UHV companies, 21 disclosed their overseas revenue proportion in their interim reports. Among them, Trina Solar, Sieyuan Electric, Hongfa Electronics, China XD Electric, and Dalian Insulator had overseas revenue proportions reaching 47.55%, 33.68%, 28.39%, 19.16%, and 15.80%, respectively. Compared with data from the end of 2024, 13 companies saw an increase in their overseas revenue proportion, with Sieyuan Electric, Baoding Tianwei Baobian Electric Co.,Ltd., and China XD Electric showing significant increases of 13.48 percentage points, 6.89 percentage points, and 6.48 percentage points, respectively. It is worth noting that among the 13 companies with growing overseas revenue share, 7 achieved year-on-year growth in revenue or net profit attributable to shareholders.
Sieyuan Electric is one of the few domestic companies with R&D and manufacturing capabilities across the entire chain of primary power equipment, secondary equipment, and power electronics equipment. Its stock price has risen 108% this year. According to the company's financial report, in the first three quarters of this year, the company's revenue increased by 32.86% year-on-year, and net profit attributable to shareholders increased by 46.94% year-on-year. During the Q3 performance briefing held on October 20, Sieyuan Electric pointed out, "The growth rate of overseas orders is higher than the average growth rate. Among domestic orders, orders from within the system, and orders related to new energy and energy storage, growth met expectations, while orders from domestic industrial enterprises increased steadily." "Overseas EPC projects are mainly concentrated in Southeast Asia and Africa. Based on local energy construction needs, order volume has increased this year."
Hainan Jinpan Smart Technology Co.,Ltd. also has a significant proportion of overseas revenue. Although its interim report did not disclose overseas revenue details, it was revealed during the Q3 performance briefing: "From January to September 2025, the company achieved main business revenue of 5,155.1939 million yuan, of which export business revenue was 1,590.4014 million yuan." Export business revenue accounted for 30.85% of the main business revenue. The company stated that with the continuous deepening of its overseas布局, its Malaysia factory has officially commenced production, further enhancing its delivery capability and customer service level in overseas markets, while the company is actively promoting the expansion of overseas customers and orders.
Compared to the aforementioned companies, Beijing Sifang Automation Co.,Ltd.'s disclosed overseas revenue proportion in its interim report this year was only 2.54%. However, the company stated in recent institutional research activities, "The company always regards promoting international development strategy as an important direction, continuously increases R&D and overseas market investment, with regional布局 primarily focusing on countries along the 'Belt and Road' initiative, while continuing to deepen markets in Southeast Asia, Central Asia, and Africa, actively exploring markets in the Middle East and Latin America, and paying close attention to opportunities in European and American markets. The company's international business has achieved significant progress, realizing rapid breakthroughs in new markets and new countries, laying a solid foundation for the出海 of primary equipment."
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