China Merchants Securities released a research report stating that AI large model training is driving exponential growth in computing power demand and energy consumption, leading to a sharp increase in energy use for intelligent computing. The coordination between computing and power has been included in the government work report for the first time. With the surge in computing power demand, green electricity has become crucial for the low-carbon development of computing infrastructure, not only effectively bridging the gap in traditional power supply but also providing a viable path for computing facilities to achieve low-carbon and sustainable development. The industry has entered a stage where policy implementation and pilot projects are advancing in parallel. The application scenarios for multi-party collaboration under the principle of "computing optimizing power, power supporting computing" are diverse. It is recommended to focus on core beneficiaries. The main views of China Merchants Securities are as follows:
"Computing-Power Coordination" Included in Government Work Report for First Time On March 5, 2026, at the Fourth Session of the 14th National People's Congress, the Premier of the State Council explicitly stated in the government work report: "Implement new infrastructure projects such as ultra-large-scale intelligent computing clusters and computing-power coordination, strengthen nationwide integrated computing power monitoring and scheduling, and support the development of public cloud." Computing-power coordination was listed alongside ultra-large-scale intelligent computing clusters as a national-level new infrastructure project. On March 23, at the 2026 China Development Forum, Liu Liehong, Director of the National Data Administration, provided an authoritative definition of computing-power coordination: it refers to a new infrastructure project that deeply integrates computing power infrastructure with the power system through digital technology, intelligent algorithms, and information networks, promoting dynamic resource matching and optimal allocation, and achieving a "virtuous cycle of strengthening computing with power and promoting power with computing." The main contents include promoting direct supply of green electricity, aggregated supply of green electricity, improving the support capacity of green electricity for computing power, promoting waste heat recovery and utilization, and enhancing green, low-carbon, circular benefits.
Continuous Expansion of Renewable Energy Capacity Makes Green Electricity Key to Solving Power Shortages in Data Centers Large model training is driving exponential growth in computing power demand and energy consumption, leading to a sharp increase in energy use for intelligent computing. Against the backdrop of explosive growth in computing power demand and increasingly prominent structural contradictions in power supply, green electricity not only effectively bridges the gap in traditional power supply but also provides a viable path for computing facilities to achieve low-carbon and sustainable development. Currently, computing-power coordination in China has entered a critical stage where policy implementation and pilot exploration are advancing in parallel. China has successively released multiple policy documents to coordinate the layout of computing power and power. By the end of 2023, the National Development and Reform Commission and other departments proposed that by 2025, the proportion of green electricity in new data centers in national hub nodes should exceed 80%. Many companies have also committed to achieving 100% renewable energy use by 2030.
Computing-Power Coordination Development Encompasses Two Key Systems: Computing and Power The computing power system mainly includes computing power suppliers and computing network operators. The power system mainly includes power generators, grid operators, and energy storage providers. Among them, computing power suppliers provide adjustable load for the power system, supporting peak shaving of the grid; computing power operators connect computing and power links to achieve globally optimal scheduling; power generators provide clean, low-carbon energy for computing power, promoting decarbonization of computing; grid operators ensure stable power supply for computing and promote power market transactions; energy storage providers mitigate fluctuations in new energy sources and enhance the reliability of power supply for computing. Specific application measures for computing-power coordination include source-load interaction, storage-load interaction, and integrated source-grid-load-storage systems.
As a Pioneer in Building a New Power System, China Southern Power Grid Has Made Early Moves in "Power-Carbon-Computing Coordination" During the 14th Five-Year Plan period, China Southern Power Grid built a "3+1+X" digital infrastructure cluster, developed the "Dianhong IoT" operating system and high-efficiency servers, and released the country's first power-carbon-computing coordinated operation system. Looking ahead to the 15th Five-Year Plan period, the company adheres to the directions of intelligence, ecologicalization, and integration, making comprehensive layouts around infrastructure, technological innovation, scenario expansion, and ecological upgrading. With the integrated paradigm of "power as the base, carbon as the pulse, computing as the wing," it sets a benchmark for computing-power coordination development in China.
Investment Advice: Focus on China Southern Power Grid Digital, China Southern Power Grid Technology, and Guoneng Rixin; other suggestions include GCL Energy, Yudian Holdings, Jinkai New Energy, and China Energy Engineering (not covered by the computer sector).
Risk Warning: Risks of policy and mechanism implementation falling short of expectations; risks of supply-demand mismatch and economic fluctuations.
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