Hua Er Jie Jian Wen·2026-01-27 12:37Core Insights - The core contradiction of the electricity supercycle has shifted from "how to increase power generation capacity" to "how to improve electricity usage efficiency" [1] - A global electricity supercycle has begun as the U.S. anticipates a 50 GW power supply gap by 2030, yet capital market reactions reveal a significant cognitive bias [1][3] - Companies focused on power generation, such as Caterpillar and Cummins, have seen stock prices surge by 80% over the past year, while those in power distribution and management, like Eaton and Schneider, have declined by 10% [1][3] Market Understanding - The valuation divergence reflects a limited understanding of the electricity supercycle, with most investors fixated on "building more power plants" rather than optimizing electricity efficiency through technological innovation [3] - The demand explosion, driven by the AI industry's rapid growth, is a key factor, with electricity demand projected to grow at an annual rate of 3.5%, significantly outpacing historical trends [6] Technological Innovations - High-voltage technologies, such as 800V data center architecture and 765kV transmission lines, can enhance electricity efficiency by up to 5% without increasing generation capacity [5] - The 800V architecture addresses critical issues in current power systems, offering efficiency improvements, cost optimization, and space savings, potentially saving nearly $12 billion annually for a 1 GW data center [8] - The 765kV transmission lines, which have not been built in the U.S. for 20 years, can transport 2 to 2.5 GW of electricity, significantly reducing costs and land use compared to lower voltage lines [12][13] Market Dynamics - The current phase of the electricity cycle is characterized by a shift from capacity expansion to efficiency enhancement, with previously undervalued distribution and power management companies likely to recover and reshape market dynamics [5][7] - The market is witnessing a long-term opportunity in high-voltage transmission due to the significant capacity gap, despite some data centers considering on-site generation [13]