Xin Lang Cai Jing·2026-01-20 06:45Core Viewpoint - The electric grid equipment sector is experiencing a significant surge, driven by substantial investments from the State Grid and Southern Power Grid, marking a new phase in China's energy transition [1] Investment and Market Dynamics - The State Grid announced a fixed asset investment of 4 trillion yuan during the 14th Five-Year Plan, while Southern Power Grid disclosed an investment scale of 180 billion yuan for 2026, indicating a shift towards annual investments nearing 1 trillion yuan [1] - This investment not only sets a historical high but also signifies the acceleration of new power system construction from planning to implementation, providing crucial support for China's energy transition [1] Industry Trends and Future Outlook - The consensus in the industry is that "the end of AI is electricity," highlighting the critical role of power supply in the development of AI technologies, especially with the increasing energy demands of large models like GPT-5 [1] - Goldman Sachs predicts that by 2030, AI data centers will increase global electricity demand by 175% compared to 2023, emphasizing the mismatch in the speed of data center construction and transmission line installation [1] - Dongguan Securities notes that significant projects in China, such as smart grids and urban-rural grid renovations, require substantial electric grid equipment, leading to a demand for efficient, energy-saving, and environmentally friendly transformers [1] Investment Products - The Tianhong CSI Electric Grid Equipment Theme Index closely tracks the performance of 80 listed companies involved in ultra-high voltage and smart grid construction, reflecting the overall performance of electric grid equipment stocks [2] - Investors interested in capitalizing on the growth of AI computing power may consider the Tianhong CSI Electric Grid Equipment Index [2]