The surge in AI computing power is widening the power supply gap in the United States, leading to a significant increase in electricity demand. Cloud Service Providers (CSPs) are now building their own power generation facilities, primarily opting for gas turbines, with solar-plus-storage as a secondary choice. Chinese companies are poised to benefit from this high-growth period in US power infrastructure construction. According to a report from the International Energy Agency, global electricity demand from data centers is projected to reach approximately 945 terawatt-hours by 2030. While demand continues to grow, supply-side constraints are becoming increasingly evident. Gas turbines have emerged as the preferred primary power source for AI Data Centers (AIDCs) due to their rapid response capability, high power adaptability, relatively low generation costs, and high reliability.

A research report from China Securities (CSC) indicates that power shortages will remain a key theme throughout the year, expressing strong confidence in the gas turbine industry chain. Based on CSC's calculations, global demand for gas turbines will exceed 120 GW by 2028, while global supply is estimated to be around 90 GW, indicating a persistently widening gap. The report maintains a positive outlook on the gas turbine industry chain and trends such as the conversion of ship engines to gas turbines.

Regarding gas turbine industry chain stocks listed in Hong Kong: DONGFANG ELEC (01072): The power shortage in North America presents an opportunity for DONGFANG ELEC to export its self-developed gas turbines to developed countries. The scale of the supply-demand gap is substantial enough to support the entry of Chinese gas turbines into the global supply chain during what is considered a once-in-30-years cycle for the industry. A Citigroup report noted that DONGFANG ELEC has achieved a key strategic breakthrough by securing a landmark order for 20 units of 50MW gas turbine generator sets from a Canadian client. The unit price is RMB 200 million, with a gross profit margin of 40-50%. Based on anticipated revenue from these gas turbine generator sets, Citigroup has raised its net profit forecast for DONGFANG ELEC for the 2026-2027 fiscal years by 14-21%. Valuing the company at 22 times projected 2026 earnings for its H-shares and 26 times for its A-shares, the report finds it attractive within the global gas turbine industry. HARBIN ELECTRIC (01133): HARBIN ELECTRIC has issued a positive profit alert, anticipating that the company will achieve a net profit attributable to owners of approximately RMB 2.65 billion for the 2025 fiscal year. This represents a significant increase compared to the RMB 1.686 billion recorded in the same period of 2024. The primary reasons cited are an increase in operating revenue for the 2025 fiscal year compared to the previous year and a further improvement in product profitability.