Core Viewpoint - Eaton announced the acquisition of Boyd's thermal management business for $9.5 billion, reflecting a significant shift in the competitive landscape of AI data center infrastructure, with a valuation premium of 22.5 times [1] Group 1: Company Overview - Eaton, founded in 1911 and listed on the NYSE in 1923, is a global intelligent power management company with projected sales of $24.9 billion in 2024 and operations in over 170 countries, employing more than 92,000 people [2] - The company focuses on improving quality of life and environmental quality through reliable, efficient, safe, and sustainable power management technologies, with applications in critical infrastructure such as data centers, power grids, and transportation [2] - Eaton has over 150 patents and has been recognized as one of Fortune's "World's Most Admired Companies" for seven consecutive years [2] Group 2: Transaction Details - The acquisition addresses two structural changes in AI data centers: the upgrade of technology architecture and the merging of traditional separated zones, requiring a shift from decentralized supply to system collaboration [3] - Eaton's strengths lie in the backend infrastructure (gray area), while Boyd excels in the IT equipment end (white area), making their combination a perfect fit for the industry's demand for "white-gray integration" [5] Group 3: Strategic Value of the Acquisition - The proliferation of 800V DC architecture has made complete power chain solutions a competitive necessity, allowing Eaton to move beyond high-voltage distribution to a full chain capability covering power access, distribution, chip power, and heat dissipation [6] - Boyd's strategic position within NVIDIA's ecosystem enhances Eaton's market access, enabling cross-selling opportunities and collaborative design for next-generation AI servers [7] - Boyd's projected revenue of $1.5 billion from liquid cooling in 2026 represents 12% of the current global liquid cooling market, positioning Eaton to capitalize on market growth [8]

Investment Rating - The report rates the industry as "Outperform the Market" [1] Core Insights - High Voltage Direct Current (HVDC) technology presents significant market opportunities for domestic equipment manufacturers [1] - The global AI data center market is expected to see substantial growth, with a projected annual compound growth rate (CAGR) of 28% for AI computing power load from 2024 to 2030 [4] - The demand for power equipment in data centers is anticipated to reach a market size of 108.7 billion yuan by 2030, driven by the increasing requirements for reliability and efficiency [5] Summary by Sections AI Data Center Growth - The global computing power scale is projected to exceed 16 ZFlops by 2030, with AI computing power accounting for over 90% [4] - The expected annual growth in AI computing power load from 2025 to 2030 is 9.7 GW, 15.9 GW, 20.2 GW, 22.3 GW, 23.4 GW, and 24.6 GW respectively [10][11] Power Equipment Demand - The demand for power equipment in data centers is expected to grow significantly, with estimates of 29 GW, 48 GW, 60 GW, 67 GW, 70 GW, and 74 GW from 2025 to 2030 [30] - The market for transformers, switchgear, UPS, and HVDC is projected to reach 85 billion yuan, 341 billion yuan, 41 billion yuan, and 380 billion yuan respectively by 2030 [5] Technology Trends - The integration and modularization of power distribution equipment are increasingly required, with HVDC technology expected to see a steady rise in penetration from the current 15%-20% [6] - The transition to 800V HVDC systems is being accelerated by major companies like NVIDIA, which aims to support ultra-high power density IT racks [6][49] Company Analysis - Key players in the data center power equipment sector include Delta, Vertiv, Schneider Electric, and domestic firms like Hezhong Electric and Mingyang Electric [7] - Investment recommendations include focusing on companies such as Hezhong Electric, Shenghong Co., Magmi Tech, Mingyang Electric, and Jinpan Technology [7]