Power equipment enters a golden era! How does the AI boom drive the rise of heavy electrical concept stocks? What is heavy electrical and what are the investment opportunities?

2026-01-06 11:48:32

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From AI to Power Grids, What Is Heavy Electricity? Why Has It Suddenly Become a Focus?

“Heavy Electricity” refers to industries engaged in the manufacturing of large-scale electrical equipment, engineering contracting, and related services. Simply put, these companies are responsible for every aspect of power systems, including generation, transmission, and distribution. Their products include transformers, GIS switches, distribution panels, and other core equipment.

This industry was originally seen as a “stable but slow-growing” sector. However, in recent years, it has undergone a complete transformation due to a massive change—the explosive growth of AI and data centers. Training large AI models like GPT-4 consumes electricity equivalent to several thousand households’ annual usage. Hundreds of millions of users worldwide use AI tools like ChatGPT and Midjourney daily, requiring data centers to operate 24/7, resulting in astonishing power consumption.

According to the International Energy Agency, global data center electricity consumption is projected to reach 945 TWh by 2030, more than doubling current levels and slightly exceeding Japan’s total electricity consumption. AI is the strongest driver of this growth, with data centers built specifically for AI expected to see electricity use grow more than fourfold by 2030.

The Core Logic of the Heavy Electricity Industry

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