China Galaxy Securities: Computing Power Coordination Included in New Infrastructure Project, IDC Computing Power Sentiment Improves

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China Galaxy Securities has released a research report stating that the 2026 government work report will include “Compute and Power Collaboration” as part of new infrastructure projects. From a national strategic perspective, the core of compute and power collaboration is transforming China’s power system industrial advantages into digital economy competitive advantages. Currently, the costs and constraints of data centers are increasingly focused on two issues: electricity prices and energy efficiency. “Compute and Power Collaboration” is expected to expand AIDC/IDC from a model of cabinet leasing and heavy asset property management to a hybrid infrastructure platform of “electricity resources + computing power delivery + energy operation.”

Main points from China Galaxy Securities:

In 2026, the government work report will incorporate “Compute and Power Collaboration” into new infrastructure projects.

“Compute and Power Collaboration” refers to the deep integration of computing infrastructure and power systems through digital and intelligent technologies, enabling two-way interaction and optimized allocation of computing load and power supply. By 2025, China’s AIDC IT energy consumption is expected to reach 77.7 TWh, increasing to 146.2 TWh by 2027, putting continued pressure on power supply.

Compute and power collaboration manifests in two levels: first, “electricity supporting computing,” which provides stable, low-cost, zero-carbon electricity for data centers through direct green power supply, integrated source-grid-storage solutions; second, “computing optimizing electricity,” which uses AI algorithms and big data analysis to forecast renewable energy fluctuations and adjust computing loads in real time, transforming data centers from mere electricity consumers into flexible resources for the power system, participating in grid peak shaving and frequency regulation through virtual power plants and other forms. From a strategic national perspective, the core of compute and power collaboration is turning China’s power system industrial advantages into digital economy competitive advantages.

As computing demand rises, electricity has become one of the most critical operational variables for AIDC.

Currently, the costs and constraints of data centers are increasingly centered on two issues: electricity prices and energy efficiency. “Compute and Power Collaboration” is expected to expand AIDC/IDC from a model of cabinet leasing and heavy asset property management to a hybrid infrastructure platform of “electricity resources + computing power delivery + energy operation.”

China Galaxy Securities believes that companies benefiting from “Compute and Power Collaboration” should meet the following criteria: possessing scarce energy consumption/land/node resources, located near national computing hubs or core demand areas, capable of green power access and efficient power distribution, able to support high-density AIDC, equipped with energy-saving technologies like liquid cooling, HVDC, UPS, energy storage, or possessing computing scheduling/AI cloud operation capabilities. Within this framework, the most noteworthy directions in the telecom industry are AIDC/IDC operators and companies involved in liquid cooling and energy-saving solutions.

Compute and power collaboration opens multiple pathways for IDC cost reduction, with green power trading and energy efficiency management reshaping cost curves.

First, compute follows low-cost green electricity, directly reducing electricity costs; second, task scheduling fluctuates with electricity prices and green power availability to lower consumption during high-cost periods; third, technologies like liquid cooling and AI energy management reduce PUE, decreasing non-IT energy consumption; fourth, participation in green power trading, auxiliary services, and virtual power plants shifts some electricity use from rigid cost centers to flexible value centers.

For example, Runjian Co., Ltd. has built the Wuxiang Cloud Valley Intelligent Computing Center, currently the highest-grade and largest-scale intelligent computing center in Guangxi. Leveraging its technical background in the power industry, the company has fully deployed energy networks, creating a comprehensive “generation-transmission-distribution-energy storage-usage-cloud services” technical service capability, positioning itself to lead in the construction of new power systems and the achievement of dual carbon goals.

Investment suggestions:

Deeply deploying “East Data, West Computing” hubs or possessing green power resources, AIDC/IDC service providers, and data center infrastructure suppliers offering efficient, stable, and green power distribution and temperature control solutions are expected to benefit from the development of “Compute and Power Collaboration.”

AIDC-related stocks: Runjian Co. (002929.SZ), DataPort (603881.SH), Runze Technology (300442.SZ), Sunray New Network (300383.SZ); optical module stocks: Zhongji Xuchuang (300308.SZ), New Easy Sheng (300502.SZ), Liante Technology (301205.SZ); fiber optic cable stocks: Longfei Fiber (601869.SH), Hengtong Optoelectronics (600487.SH), Zhongtian Technology (600522.SH); liquid cooling stocks: Yingweike (002837.SZ).

Risk warnings:

Risks of AIGC application promotion falling short of expectations; uncertainties from domestic and international policy and technological friction; intensified competition within the compute industry.