Soochow Securities released a research report stating that the implementation of CSP self-supply power agreements, combined with better-than-expected ultra-high voltage planning in North America, indicates new trends in power supply technology are poised for multi-point growth. According to calculations, the global market size for both SST and HVDC power supplies is projected to exceed one trillion yuan by 2030, indicating substantial market potential. On the industrial front, domestic HVDC technology accumulation surpasses that of overseas counterparts, with progress from HVDC power supplies to SST exceeding market and industry expectations. The report is optimistic about domestic supply chains entering the North American AIDC market through collaborations with overseas Tier 1 companies.

Key points from Soochow Securities are as follows:

Recent Developments: 1) On March 4, seven major North American companies, including Microsoft and Google, formally signed a commitment document at the White House, establishing the use of self-built or purchased power generation facilities to meet the electricity demands of new AI data centers, providing official policy confirmation for the self-supply power rationale. 2) Three major US regional power grids recently received approval for transmission expansion projects totaling $75 billion, focusing on 765 kV ultra-high voltage lines. The total mileage of new lines will be expanded to 10,000 miles, equivalent to four times the existing mileage.

Core Demand Drivers: 1) Grid Side: Transformers. As data centers scale to gigawatt levels, large data centers building their own substations are exacerbating the global shortage of transformer supply. Orders for leading overseas transformer companies are already backlogged for over three years. In 2025, domestic companies like Siyuan and Baiyun achieved rapid growth in North American transformer orders. High demand coupled with slow capacity expansion by overseas giants favors rapid order growth for high-quality domestic transformer companies in the North American market. 2) Power Generation Side: North American CSP data centers are opting for "bring-your-own-power," with gas turbines being the primary generation equipment. Orders for gas turbines from Siemens and GE are already booked until 2030. Analogous to the development logic of high-voltage transformers, unexpected demand surge suggests orders may gradually diffuse from the "top three" to the "second tier" and then to "Chinese manufacturers."

New Technology Trends: The power supply system is trending towards DC, consolidation, and higher voltages. Soochow Securities calculates that the global market size for both SST and HVDC power supplies will surpass one trillion yuan by 2030, representing immense market space. Domestically, HVDC technology accumulation exceeds international levels, and progress in HVDC power supplies and SST has surpassed expectations. The outlook is positive for domestic supply chains partnering with overseas Tier 1 companies to enter the North American AIDC market. Overseas HVDC projects are expected to materialize in Q2 2026, with SST beginning small-batch application in H2 2026. This year is anticipated to mark the beginning of large-scale industrialization for HVDC.

Recommended Stocks: 1) Transformers and Grid Equipment: As a core, supply-constrained segment, key recommendations include Siyuan Electric (002028.SZ), Jinpan International (688676.SH), and Eaglerise (002922.SZ). Suggestions to monitor include Shenma Power (603530.SH), Baiyun Electric (603861.SH), TBEA (600089.SH), China XD Electric (601179.SH), and Wangbian Electric (603191.SH). 2) Power Generation Equipment: For gas turbines, key recommendation is Dongfang Electric (600875.SH, 01072) (noting self-reliance in G50 and G15 heavy-duty gas turbines, with G50 already having export orders to high-margin markets like North America and the Middle East). Suggestion to monitor Hollywin (300277.SZ). 3) AIDC DC Power Supplies: For SST, key recommendations include Sifang Universal (601126.SH) and Sungrow Power (300274.SZ). For HVDC, key recommendations include Megmeet (002851.SZ), Zhongheng Electric (002364.SZ), UU Green Power (301590.SZ), and KSTAR (002518.SZ).

Risk warnings include capital expenditure falling short of expectations, overseas expansion underperforming, and intensifying competition.