China's Internet Data Centers Could Serve Global AI Inference Demand

Dow Jones06-25

0459 GMT - China's internet data centers have the potential to serve global artificial-intelligence inference demand in the long term, according to HSBC analysts in a research note. The sector could leverage the country's "model cost-efficiency, abundant low-cost green power in western China, and lower construction, mechanical and electrical equipment costs," the analysts say. HSBC expects Ruijie Networks, a provider of network infrastructure and solutions, to gain market share in the fast-growing data center switch market and expects its net margin to improve to 10% in 2028, compared with 5% in 2025, given better economies of scale. Its shares last traded 0.25% higher at 66.96 yuan. (tracy.qu@wsj.com)

(END) Dow Jones Newswires

June 25, 2026 00:59 ET (04:59 GMT)

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