Investment Rating - The industry investment rating is "Buy" [2] Core Insights - The report emphasizes the importance of "computing power and electricity collaboration" as it has been included in the government work report for the first time, indicating a new phase during the 14th Five-Year Plan. This collaboration aims to integrate computing power infrastructure with the power system through digital technology and intelligent algorithms, optimizing resource allocation and enhancing operational efficiency [6][14][21]. - The report highlights the significant role of green electricity in supporting the computing power industry, with a focus on the integration of various elements such as energy supply, grid transmission, intelligent scheduling, and energy storage [21][24]. - The operational costs of computing power centers are highly dependent on electricity expenses, with electricity costs accounting for approximately 45% of total operational costs. The shift towards green electricity is becoming a necessity for the development of data centers [32][33][42]. Summary by Sections Policy Perspective - The government work report for 2026 mentions the implementation of large-scale computing power and electricity collaboration as a new infrastructure project, aiming for over 80% green electricity usage in new data centers by 2025 [14][16]. - Policies are being established to promote the use of green electricity in data centers, including green electricity trading and long-term Power Purchase Agreements (PPAs) [16][21]. Industry Perspective - The collaboration between computing power and electricity is described as a closed-loop industrial chain, where green electricity companies play a central role in providing clean energy and optimizing costs while contributing to carbon reduction [21][24]. - The report outlines the integration of various resources in the computing power and electricity collaboration, emphasizing the dual empowerment of electricity supporting computing and computing optimizing electricity [21][24]. Cost Perspective - The report indicates that the cost structure of computing power centers is significantly influenced by electricity prices and energy efficiency levels (PUE). A reduction in PUE from 1.5 to 1.2 and a decrease in electricity price from 0.8 to 0.4 CNY/kWh can save approximately 315 million CNY annually for a 50MW data center [32][33]. - The report also notes that the energy consumption of IT equipment is the primary contributor to electricity costs, with IT devices accounting for 67% of energy consumption in data centers [33][34]. Investment Recommendations - The report recommends focusing on the revaluation of green electricity operators and the first-mover advantage of integrated computing power and electricity construction operators. Key companies to watch include China Electric Power Construction (operating 24GW of green electricity), China Energy Engineering (operating 15GW), and Deep Sanda A (cloud computing PaaS) [53][54].