A September power sector study from Allianz Investment highlights that AI data centers, rising electric vehicle adoption, climate warming, and manufacturing expansion are jointly accelerating electricity demand, ushering in a new era of power consumption. Global electricity demand is now outpacing economic output growth for the first time in three decades, with an expected average annual increase of 3.6% over the next five years - 50% faster than the previous decade's pace.
Allianz notes that this demand cycle differs from past economic-driven fluctuations, pointing to four long-term drivers: data centers, transport electrification, air conditioning and heat pumps, and industrial production. Among these, data centers represent the fastest-growing source of new demand, projected to contribute roughly 10% of global incremental electricity needs by 2030. As the scale of servers required for AI training and inference continues to expand, computing capacity growth is becoming increasingly constrained by power availability.
For AI, semiconductors, batteries, and advanced manufacturing, the factors determining global industrial layouts may no longer be limited to labor costs, tax rates, and supply chains - stable and affordable electricity is set to become a core competitive condition. Allianz estimates that meeting rising demand and climate targets will require roughly $4.8 trillion in annual global investment across power generation, transmission, and storage over the next decade.
TrendForce projects that global data center power demand capacity will reach 161GW in 2026, up about 31% year-on-year, with AI servers as the primary growth source, accounting for an estimated 33.4% of total capacity. By 2030, global data center power demand is forecast to hit 490.7GW, yet grid capacity available for data centers stands at just 222.6GW - leaving a supply-demand gap of 268GW.
With explosive growth in global AI computing infrastructure and the dense rollout of hyperscale data centers, the high-end backup power market is entering a phase of structural prosperity. According to a recent McKinsey industry report, global AI computing power demand will continue to expand rapidly, with AI-related electricity needs projected to multiply several times between 2025 and 2030 - directly fueling sustained surging demand for emergency diesel generation equipment in high-grade data centers. Diesel generator sets, with their high reliability, fast response, strong load capacity, and independent stability, remain the ultimate power safety net for world-class data centers.
CITIC Securities observes that massive AI token demand opens long-term growth space for computing power, with both Chinese and American enterprises ramping up capital expenditure in tandem - suggesting domestic computing investment still holds significant upside potential. Meanwhile, China's advantages in power supply and low-cost green electricity, combined with the accelerating integration of direct green power connections and source-grid-load-storage systems, create a unique industrial edge through computing-electricity synergy. On the supply chain front, computing infrastructure construction significantly boosts demand for AI-related metals like copper and tin. Additionally, the asset-heavy nature of computing - supported by IDC REITs broadening funding channels to sustain industry expansion - makes computing and power-related supply chains attractive for medium-to-long-term allocation.
DONGFANG ELEC (01072) began domestic development of its heavy-duty F-class 50MW gas turbine (G50) with fully independent intellectual property rights back in 2009, achieving 100% self-manufacturing of high-temperature components. The first G50 unit ignited successfully at China Huadian's Qingyuan overseas Chinese Industrial Park project in Guangdong at the end of 2022, entering commercial operation in March 2023. In 2025, the company broke through with its first overseas order for the technology.
WEICHAI POWER (02338) launched the world's first 5MW high-speed diesel generator set - model 20M61 - claiming the top spot globally in power-per-liter displacement. This achievement breaks the long-standing dominance of overseas brands in the ultra-high-power premium power generation segment, opening the door to the global high-end computing power supply market. Institutions project that profit contribution from AIDC power generation related businesses could rise from 20% to over 40% between 2026 and 2028, delivering more than 70% of incremental earnings growth.
HARBIN ELECTRIC (01133) - Citi notes its self-developed 16MW gas turbine is expected to complete testing in the second half of 2026, after which it can become commercially viable. BOC International suggests that given the rapid expansion of AI data centers across Southeast Asia, the company's accumulated expertise in gas turbine technology positions its supporting business as a potential new growth driver in the future.
CN INT DEV CORP (00264) previously announced on July 26 and August 3 that its subsidiaries signed two prefabricated AIDC module procurement contracts with Brightray Veridian, an independent overseas third-party customer. The two orders total $9,300 million - $2,498 million and $6,800 million respectively, equivalent to approximately HK$731 million - with both project deliveries located at AIDC construction sites in Johor Bahru, Malaysia.
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