Investment Rating - The report maintains an investment rating of "Leading the Market - A" for the general machinery sector [1]. Core Insights - The demand for power in North American data centers is increasing, leading to opportunities for domestic gas generator replacements and overseas expansion [1]. - The global power consumption of data centers is projected to double from approximately 415 TWh in 2024 to 945 TWh by 2030, indicating a significant growth trajectory [5]. - Caterpillar reported a record high revenue of $67.6 billion for 2025, with a 71% year-on-year increase in backlog orders, highlighting strong market demand [6]. Summary by Sections Market Performance - The general machinery sector has shown robust performance over the past year, driven by increased demand for data center power solutions [1]. Demand Drivers - The explosion of AI computing infrastructure is driving demand for backup power solutions, with sales of data center backup power and gas engines increasing by 37% [2]. - The need for off-grid power solutions is becoming critical due to mismatches in construction timelines between data centers and power grid expansions [5]. Technological Developments - Wärtsilä has secured a 507 MW order for gas engines to supply power to new data centers in the U.S., indicating a shift towards gas engines as primary power sources [3]. - The market share for gas engines in data center applications is expected to rise significantly, from 28.6% in 2020 to 53.7% in 2024, with projections to reach 70.8% by 2030 [8]. Investment Opportunities - The report suggests focusing on companies like Weichai Heavy Machinery and Weichai Power, which have advantages in the North American market and capabilities in gas engine technology [11]. - The demand for gas engines is expected to create significant export opportunities for domestic manufacturers due to supply-demand imbalances in overseas markets [10].

Group 1: Core Insights - The report from Huazhong Securities indicates that the U.S. energy storage capacity is steadily increasing, with an expected installation of 52.5 GWh by 2025 [1] - The next five years are identified as a critical window for data center expansion, with energy storage expected to be a key solution for electricity shortages in U.S. data centers before 2030 [1][3] Group 2: Current Status of U.S. Energy Storage - In the first 11 months of 2025, the U.S. added 36.23 GWh of large-scale energy storage, with contributions from emerging states like Arizona, in addition to Texas and California [1] - U.S. energy storage can be categorized into three types: arbitrage-driven, capacity contract-driven, and load-driven [1] Group 3: Advantages of Energy Storage in the AI Era - The mismatch between power supply and transmission construction, coupled with the retirement of traditional energy sources, has led to increased demand from data centers [2] - Energy storage can serve multiple roles, including acting as a dispatchable unit on the grid side and as flexible load on the user side, enhancing reliability and reducing dependency on diesel generators [2] Group 4: Economic Viability of Energy Storage - According to Lazard's 2025 report, the cost of solar-plus-storage in the U.S. ranges from $0.05 to $0.13 per kWh, making it economically advantageous compared to nuclear, coal, and gas power [2] - Data centers utilizing four-hour storage can achieve an internal rate of return (IRR) of 20.5%, with a payback period of only 4.76 years [2] Group 5: Future Projections and Strategic Importance - Energy storage is expected to become a core solution for electricity shortages in U.S. data centers, with projections indicating that installations may exceed 110 GWh by 2027 [3] - The ability to bypass long grid connection queues and connect to distribution networks or behind-the-meter (BTM) solutions is highlighted as a significant advantage for energy storage [3] Group 6: Recommended Stocks - The report recommends several companies as potential investment opportunities: Sungrow Power Supply (300274.SZ), Shuneng Electric (300827.SZ), Canadian Solar (688472.SH), and CATL (300750.SZ, 03750) [4]