China Galaxy Securities released a research report stating that the U.S. Department of Energy predicts electricity demand will reach 325–580 TWh by 2028, accounting for 6.7%–12% of the country's total power consumption. AI server power demand is expected to surge from around 40 TWh in 2023 to 165–325 TWh by 2028, a 4–8x increase. With U.S. AIDC project capacity expanding by 45 GW by Q3 2025, the potential for energy storage integration and duration is expected to rise, enhancing flexibility.

Additionally, North America faces a transformer supply shortage. China’s average transformer export price has climbed to $20,800 per unit by 2025, with high-end models doubling in price, signaling strong export growth in both volume and value. Key insights include:

**1. Surging AI Power Demand Drives AIDC Energy Storage Needs** North America’s widening power deficit is exacerbated by AIDC growth. AI data centers consumed 176 TWh (4.4% of U.S. demand) in 2023, projected to hit 325–580 TWh (6.7%–12%) by 2028. AI server demand alone may jump from 40 TWh to 165–325 TWh. Fast-deployable AIDC energy storage offers economic advantages, with capacity potentially rising from 9.6 GWh in 2025 to 21 GWh by 2028 under a 20% capacity/4h system model.

**2. Transformer Supply Crunch Boosts Export Prospects** Global AIDC power capacity could reach 15 GW in 2024 and 66 GW by 2027, driving transformer demand from RMB 6 billion to RMB 26.4 billion (64% CAGR). North America’s supply gaps hit 30% for power transformers and 6% for distribution units, with imports covering 80% and 50% of U.S. needs, respectively. China’s transformer exports rose 36% YoY to RMB 57.9 billion in Jan–Nov, with prices up 73% since 2020.

**3. 800V HVDC and SST Adoption Accelerates** Data center power systems are evolving from UPS to HVDC, Panama Power, and solid-state transformers (SST). While UPS offers stability, HVDC excels in efficiency and compactness. SSTs, integrating transformers and HVDC, represent the future. NVIDIA’s 800V HVDC whitepaper highlights medium-voltage rectifiers/SST as the ultimate solution, with partners like Vertiv and Delta set to release designs by 2026. Chinese players—including Sungrow, Deye, and TBEA—are expected to roll out SST prototypes by H1 2026, with mass production likely by 2027.

**Recommended Stocks**: Jinpan International (688676.SH), Yiguang (002922.SZ), Sungrow (300274.SZ), Deye (605117.SH), Trina Solar (688599.SH), CSI Solar (688472.SH), Sieyuan Electric (002028.SZ), Sifang (601126.SH), TBEA (600089.SH).

**Risks**: Slower-than-expected AI growth; geopolitical uncertainties.