CICC has released a research report stating that the expansion of AI computing power, shifts in manufacturing dynamics, and electrification are driving an upward trend in North America's electricity consumption, leading to significant power shortages. Currently, the power shortage in North America exhibits systemic characteristics, affecting generation, transmission, distribution, and end-use consumption. In the short term, North America may continue to rely primarily on gas turbines as the main new power source. Over the medium to long term, reshaping the energy system will depend on expanding gas and nuclear power and comprehensive grid upgrades. The current power gap in North America is expected to further stimulate demand in China's machinery, equipment, power infrastructure, photovoltaic and renewable energy, and non-ferrous metals sectors, presenting favorable opportunities for Chinese companies expanding overseas. Key insights from CICC are as follows:

**Rising Power Shortage Pressure in North America** The surge in AI computing demand, changes in manufacturing, and electrification are pushing North America's electricity consumption higher, exacerbating power shortages. On the demand side, the explosive growth of AI is a major contributor. In September, OpenAI and Nvidia announced a partnership to build a 10GW data center for training and running next-gen AI models. Consensus estimates (as of October 31, 2025) suggest that the top four North American cloud providers' total capital expenditures (including financing leases) could grow 58.5% YoY to $362 billion in 2025, with a further 30% increase expected in 2026. The high power dependency of AI model training and inference, coupled with rapid data center expansion, is accelerating electricity demand.

On the supply side, North America's aging power grid and the retirement of coal and gas-fired plants are worsening the imbalance. Traditional gas power projects typically take over three years to complete, while nuclear projects require 5–10 years, making short-term relief unlikely. Net power import data also reflects a widening gap. According to EIA, U.S. net power imports surged 125% YoY to 20.94 terawatt-hours in the first nine months of this year. CICC International forecasts that U.S. power load could grow by over 30GW annually in the next five years, with ~20GW coming from new data centers, leaving an average annual deficit of ~15GW—a long-term challenge.

**Rising Costs and Policy Responses** Power shortages have driven up retail electricity prices, which rose 6% YoY as of August, per U.S. Energy Information Administration data. Some Democratic senators blame data center expansion and renewable energy policies for higher costs, criticizing inadequate consumer protections. Meanwhile, rising electricity expenses may squeeze corporate profits, necessitating caution over operational pressures.

To address AI-driven power deficits, the Trump administration plans billions in federal funding for new nuclear plants. In May, President Trump signed an executive order targeting 10 large reactors by 2030. An $80 billion deal with Westinghouse aims to accelerate construction. Energy Secretary Chris Wright noted that new reactors will receive substantial DOE loan support, though output won’t materialize until 2028–2030.

**Opportunities for Chinese Industries** North America's power crisis spans generation, transmission, and consumption. CICC highlights short-term reliance on gas turbines, supplemented by solid oxide fuel cells (SOFCs), solar-storage hybrids, and efficiency-boosting tech like solid-state transformers (SST). Long-term solutions require gas/nuclear expansion and grid modernization.

With China's competitive advantages—scale, supply chain synergy, and engineering expertise—the North American power gap could boost demand for: - **Machinery & Equipment**: Gas turbines, favored for efficiency and quick deployment, are seeing surging orders from AI data centers. Chinese suppliers in manufacturing, blades, and materials may benefit. - **Power Grid Equipment**: Aging North American grids need upgrades, with transformers facing a 66% supply gap by 2027. China’s efficient production and project experience position it as a key supplier. Transformer exports rose 39% YoY to $6.5 billion in Jan–Sep 2025. - **Energy Storage**: AI data centers’ volatile loads make storage essential for grid stability. Chinese firms with tech and overseas capacity could capitalize on unexpected demand. - **HVDC/SST Tech**: High-voltage direct current (HVDC) and SST systems, promoted by Nvidia for 800V architectures, offer flexibility and reliability, benefiting advanced Chinese players. - **Renewables & Non-Ferrous Metals**: Solar and SOFCs gain traction amid slow nuclear/gas build-outs. Grid investments may lift aluminum demand, though U.S. production is constrained by high power costs, supporting prices and Chinese producers’ margins.

**Risks**: Demand shortfalls, overseas expansion volatility, and trade policy shifts.