2025-11-03 02:36Summary of Key Points from the Conference Call Industry Overview - Industry: AI Infrastructure in China - Projected AI Capex: China’s AI capital expenditure (capex) is expected to reach RMB800 billion (approximately US$110 billion) by 2030, accounting for one-third of total AI capex in China [1][62] - Global AI Capex: Global AI-related capex is projected to exceed US$1.2 trillion by 2030, nearly tripling from 2025 levels [1][54] - China's AI Capex Growth: Expected to grow from RMB600-700 billion (US$85-95 billion) in 2025 to RMB2-2.5 trillion (US$280-350 billion) by 2030, with a CAGR of 25-30% [1][61] Power Demand and Data Centers - Power Consumption: China's data centers are projected to consume 277 TWh of electricity by 2030, up from 102 TWh in 2024, representing a CAGR of 18% [1][42] - Global Data Center Power Demand: Global data center power consumption is expected to grow 2.3 times from 416 TWh in 2024 to 946 TWh in 2030 [1][28] Opportunities in Power Supply - Nuclear Power: China's nuclear capacity is expected to grow from 60 GW in 2025 to 100 GW in 2030, accounting for 60% of global capacity under construction [2][29] - Power Equipment Demand: Strong demand for transformers and power equipment is anticipated due to grid upgrades and rising renewable energy investments [2][45] - Energy Storage Systems (ESS): The global ESS market is expected to grow at a CAGR of 21% from 2024 to 2030, with significant growth in China [2][47] Cooling and Metals Demand - Cooling Market Growth: The liquid cooling market in China is expected to grow at a CAGR of 42% from 2025 to 2030, driven by the increasing power density of AI workloads [3][50] - Copper and Aluminum Demand: Direct AI use of copper is projected to reach approximately 1 million tons by 2030, accounting for 5-6% of total copper demand. Data centers are expected to drive 936 kt of copper demand by 2030 [3][49] Investment Recommendations - Key Stocks: - Power Equipment: Buy recommendations for Sieyuan, Jinpan, and Huaming due to expected growth in power equipment demand [2][45] - Nuclear: Buy CGN Mining and Doosan Enerbility for exposure to nuclear power growth [2][44] - Cooling Solutions: Buy AVC for liquid cooling solutions [3][50] - Metals: Buy Zijin Mining, CMOC, and Chalco for copper and aluminum exposure [3][49] Additional Insights - Government Support: Continued government spending and initiatives are expected to drive AI capex growth in China [1][61] - Energy Security: The link between AI leadership and energy security is emphasized, highlighting the need for reliable power sources [1][42] - Technological Advancements: Emerging technologies in cooling and power supply are expected to create further investment opportunities [2][48] This summary encapsulates the critical insights and projections regarding the AI infrastructure landscape in China, highlighting the expected growth in capital expenditure, power demand, and investment opportunities across various sectors.