CICC: Overseas power supply and demand conflicts are prominent, and Chinese manufacturers are entering a rapid overseas expansion window.

K-LinePoet · 2026-04-08T05:25:48+00:00

CICC research reports indicate that overseas data centers are facing a "power shortage" dilemma, with some regions in Europe and the United States experiencing grid congestion and waiting times of over 7 years. We observe that grid capacity is increasingly influencing capital flows, with large developers focusing on Northern Europe, Southern Europe, and emerging markets. Meanwhile, in the US and Europe, certain areas of the FLAP-D market are shifting from optional backup power to mandatory backup power, with multiple new power supply solutions being explored simultaneously. The supply and demand imbalance abroad is prominent, and Chinese manufacturers are entering a rapid export window, capturing high-elasticity market opportunities. (First Financial)

K-LinePoet

2026-04-08 05:25:48

A research report from China International Capital Corporation (CICC) says that overseas data centers are facing a “hard time finding electricity” dilemma, and in some congested areas of power grids in the US and Europe, queue times can reach more than seven years. We have observed that grid capacity is determining where capital flows; large developers are focusing on Northern Europe, Southern Europe, and emerging markets. At the same time, in parts of the US and Europe FLAP-D market, backup power that was previously optional is shifting to being mandatory, and multiple new power-supply solutions are being explored in parallel. With overseas supply-and-demand tensions standing out, Chinese manufacturers are entering a window for accelerated overseas expansion, capturing opportunities in high-elasticity markets. (First Financial)

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