Huafu Securities has released a research report stating that Huawei has officially launched its AIDC strategy for source, grid, load, and storage, explicitly proposing a "3+1" comprehensive restructuring concept. This encompasses four core upgrade dimensions and outlines a future evolution towards a converged grid-forming energy router centered on SST technology. The current period represents the starting point for SST's development from zero to one, with product validation and sampling expected by 2026, which is anticipated to bring the greatest potential for valuation reassessment. Attention is recommended on leading power equipment companies with advantages in complete system positioning, as well as key incremental segments such as high-frequency transformers/magnetic core materials/circuit breakers/power semiconductors. The main views of Huafu Securities are as follows:
Huawei's entry into the SST field holds dual strategic significance. Technologically, it establishes its ultimate position within the AIDC power supply architecture, while from a market perspective, it opens up possibilities for penetration across all scenarios. At the industry leadership level, this move serves as an endorsement of SST's four core values: high reliability, high power density, high conversion efficiency, and environmental sustainability. In terms of market expansion, leveraging its global sales network covering over 170 countries and strong brand endorsement in the digital energy sector, Huawei is poised to significantly accelerate the cross-scenario penetration of SST—from data centers to applications such as green power self-supply, electric vehicle ultra-fast charging, new energy grid integration, and flexible distribution networks. This will drive SST's evolution from an AI computing hardware upgrade to a universal infrastructure component for new power systems.
Power supply architecture is evolving through four stages, with SST representing the ultimate solution. As the power per cabinet in AI clusters surges, the industry's technical roadmap is progressing through four phases: UPS → UPS + SideCar → 800V HVDC → 800V SST. SST replaces traditional iron-core copper windings with power electronic devices, highly integrating AC/DC rectification and DC/DC conversion. It can directly convert medium-voltage AC to 800V DC, reducing volume by 60–90% compared to traditional solutions. Additionally, it enables bidirectional power flow, reactive power compensation, and millisecond-level response to eliminate voltage sags—capabilities unattainable with conventional transformers—thereby enhancing power supply stability.
The relationship of SST to power systems is analogous to that of CPO to optical communications. CPO integrates optical engines with switch chips, shortening optical links to form a highly integrated multi-level architecture; similarly, SST is a highly integrated power electronic product. On another front, both CPO compresses optical links and SST compresses electrical links, achieving the goal of reducing power consumption/losses.
Currently, there is a timing gap in market perception regarding SST, with many considering it too far in the future. However, industrial advancement has significantly accelerated. Several companies have released SST products for data centers this year, including Delta Electronics, Sifang Co., Ltd., and Eaglerise Electric & Electronic Co., Ltd., alongside Huawei's strategic positioning. The present period represents a reserve and energy accumulation phase for SST, to be followed by potential small-scale adoption and eventually batch implementation stages.
Risk warnings include slower-than-expected data center construction, industrialization delays, and policy risks.