Core Insights - The rapid penetration of digital technologies such as AI models and cloud computing has accelerated the layout of large data centers by tech giants, making stable power supply crucial for computational efficiency [1] - Transformer companies, particularly TBEA Co., Ltd., are experiencing a significant increase in orders for data center transformers due to rising power demands [1][2] Industry Overview - Data centers require two types of transformers: 110kV/220kV power transformers and 10kV distribution transformers, which convert high voltage to medium and then to low voltage suitable for servers [2] - Transformers for data centers must meet three key requirements: high reliability, low loss, and intelligent monitoring, with a focus on maintaining low failure rates and achieving national energy efficiency standards [2] Company Developments - TBEA has been actively responding to investor inquiries, highlighting its provision of energy-efficient transformers and a comprehensive product system including cables and energy storage units for data centers [2] - Jiangsu Yangdian Technology Co., Ltd. aims to increase its sales proportion from data center applications, while Igor Electric Co., Ltd. is focusing on expanding its transformer product range for data centers and plans to release production capacity by mid-2025 [3] Market Trends - The transformer industry is witnessing three major technological trends: energy efficiency, smart technology, and miniaturization, with a projected market growth rate of over 20% annually for data center transformers in the next 3 to 5 years [4] - The market size for data center transformers is expected to exceed 12 billion yuan by 2026, driven by leading companies leveraging their technological and production advantages [4]