Summary of Key Points from the Conference Call Industry Overview - The data center power supply is transitioning from AC UPS architecture to High Voltage Direct Current (HVDC) and Solid State Transformers (SST) to meet increasing computing density demands, improve conversion efficiency, and reduce footprint [1][4] - The domestic UPS market remains dominant, but HVDC solutions are being actively adopted by internet operators [1][4] - The overseas market has a pressing demand for HVDC due to rapid increases in computing density, which significantly enhances overall efficiency by improving conversion rates and saving cabinet space [1][6] Core Insights and Arguments - Domestic enterprises are making rapid progress in SST applications, with pilot projects in the "East Data West Computing" initiative [1][5] - Major companies like Tencent and Alibaba are adopting HVDC combined with direct power supply from the grid, collaborating with firms like Zhongheng and Delta for higher integration [1][5] - The main advantages of transitioning to HVDC include reduced AC conversion stages, improved conversion efficiency, lower operational costs, space savings, and better integration of renewable energy sources [1][11] - The data center DC power market is expected to experience rapid growth from 2026 to 2028, with a compound annual growth rate (CAGR) exceeding 30% [1][12] Current Market Landscape - The current domestic and overseas data center power supply primarily uses AC UPS architecture, which is mature and dominated by companies like Eaton, Huawei, and Kehua [3][13] - The HVDC and SST markets are still in their infancy, with domestic companies like Zhongheng and Zhongda actively engaged in R&D [3][13][14] - The transition to HVDC will drive upgrades in power supply components, such as low-voltage electrical devices evolving into DC circuit breakers [3][16] Key Developments by Major Companies - Nvidia plans to launch an 800V architecture by 2027, which will utilize a large module to convert 10kV AC to 800V DC, enhancing efficiency for high-power data centers [8][10] - Google is adopting a ±400V power supply scheme and plans to transition to SST, while Meta is using a similar architecture in its HBRV4 framework [9][10] - Microsoft has proposed two power supply solutions: a ±400V CLL edge cabinet solution and a future integrated SST solution [10] Future Trends and Opportunities - The shift towards HVDC is expected to disrupt the existing UPS supply chain, allowing domestic companies to gain a foothold in the market [17] - Key components benefiting from HVDC transition include low-voltage electrical devices and relays, which will see upgrades to higher voltage standards [18] - The integration of green electricity and the push for carbon neutrality are driving the adoption of HVDC systems, presenting significant opportunities for domestic enterprises [16][17] Conclusion - The data center power supply market is on the brink of transformation, with HVDC and SST technologies poised to redefine efficiency and operational capabilities. The expected growth in the DC power market and the strategic moves by major tech companies indicate a robust future for this sector, particularly for domestic players who can leverage their R&D advantages [12][17]

Investment Rating - The report indicates a positive investment outlook for the data center power supply industry, particularly focusing on the transition from AC to DC architectures, highlighting the potential for domestic manufacturers to increase their market share [4][9]. Core Insights - The trend of increasing power density in data centers is driving the upgrade of power supply architectures from AC to DC, with significant penetration expected for DC systems due to their efficiency, lower failure rates, and space-saving advantages [4][8]. - Domestic manufacturers are expected to benefit from their leading R&D capabilities and delivery strengths, enhancing their investment value in related power supply sectors [4][9]. - The shift towards DC power supply is anticipated to stimulate demand growth in supporting sectors such as energy storage, relays, and low-voltage electrical equipment [4][9]. Summary by Sections Market Space - The demand for AI data centers is driving the power per cabinet to rise to between 20-100 kW, necessitating a more compact and higher voltage power supply system. The global data center development scale is projected to grow from 11 GW in 2024 to 35-40 GW by 2028, with a compound annual growth rate (CAGR) of nearly 35% [8][60]. - If the penetration rate of HVDC in China increases from 15% to 40% and from 0% to 45% overseas, the global HVDC market is expected to expand at a CAGR of 161.86% [66]. Industry Chain - The demand for HVDC and other DC power sources is highly elastic, with domestic manufacturers poised to increase their market share due to their advanced R&D and delivery capabilities. The report emphasizes the importance of capturing incremental opportunities in the industry [9][70]. - The traditional UPS market is relatively stable, with the top five domestic manufacturers holding over 65% market share, while the HVDC and SST markets are still in their infancy, presenting opportunities for early movers [71][73]. Data Center Power Supply - The report notes a high concentration of cloud service providers in the data center power supply market, with domestic manufacturers expected to gain market share. The traditional UPS market is dominated by a few key players, while the HVDC market is still developing [71][78]. - The report highlights that the efficiency of HVDC systems is superior to that of traditional UPS systems, with a single HVDC system achieving over 94% efficiency [22][47].