Global grid investment has accelerated rapidly since 2020, according to IEA data. Investment reached $390 billion in 2024 and is projected to exceed $400 billion in 2025. Much of the United States' energy infrastructure is below standard, and with AI-related electricity demand rising significantly, the U.S. grid equipment sector is expected to enter a mandatory upgrade cycle. Delivery times for transformers in the U.S. have extended from 50 weeks to over 120 weeks. Chinese power grid equipment companies hold relative advantages in delivery times, technology, and cost, positioning them to benefit continuously from export orders for equipment like transformers. Customs data shows that total transformer exports for the full year of 2025 reached $9.036 billion, a record high with a cumulative growth rate of 34.83%. Among key power equipment exports in December 2025, year-on-year export values for transformers, electric wires and cables, copper windings, low-voltage switches, and insulators increased by 31.92%, 22.20%, 11.71%, 10.60%, and 31.91% respectively, showing strong multi-category growth and a rising monthly export trend. In 2026, driven by multiple factors from domestic and international demand, exports of key power grid products are expected to maintain a positive trajectory.

A 2026 strategy report for the power equipment sector notes that the AIDC (AI Data Center) sector experienced five rounds of stock price increases in 2025, primarily driven by upward revisions in CAPEX forecasts by domestic and international manufacturers, better-than-expected earnings, and technological advancements in the industry and among companies. Looking ahead to 2026, the AIDC industry is expected to remain highly active. On one hand, leading domestic and international internet companies have announced capital expenditure plans for 2026, with overseas manufacturers' CAPEX guidance generally exceeding 50%. On the other hand, overseas power equipment leaders have reported strong financial performance. The high growth potential of the AIDC industry may already be reflected in these earnings. The conflict in the U.S. between rising electricity consumption from data center growth and an aging power equipment supply presents an opportunity for Chinese power equipment exporters.

Another analysis points out, based on IEA data, the rapid growth in global grid investment since 2020. The significant increase in power demand from AI data centers is expected to directly boost demand for equipment such as transformers and high-voltage cables. With China's power grid equipment exports continuing to grow strongly in 2025, relevant domestic exporters are likely to benefit. Related Hong Kong-listed power equipment companies include: DONGFANG ELEC (01072), Harbin Electric (01133), Shanghai Electric (02727), WASION HOLDINGS (03393), Chongqing Machinery & Electric (02722), and Weichai Power (02338).