Asian power equipment makers are reporting record profits as the rapid expansion of AI data centers intensifies pressure on global electricity infrastructure. Tight transformer supply and rising investment in power grids are reshaping the industry’s earnings outlook.
Rising electricity demand from AI data centers is tightening transformer supply and forcing hyperscalers to seek alternative energy sources. As grid constraints deepen, companies are signing long term power agreements beyond traditional infrastructure, including Meta’s nuclear power deals for AI data centers, underscoring how power scarcity is reshaping tech sector energy strategy.
Power transformer availability remains constrained worldwide. Utilities and operators are racing to modernize aging grids, integrate renewable energy and support electricity hungry facilities such as hyperscale data centers. These trends have pushed lead times longer and driven prices sharply higher.
China has emerged as a key beneficiary of this imbalance. Transformer exports hit a record 64.6 billion yuan in 2025, up about 36 percent from a year earlier. Export prices climbed to roughly 205,000 yuan per unit, around one third higher year on year, reflecting both scarcity and strong overseas demand.
The United States continues to face a deep transformer supply gap, with shortages expected to persist well into the 2030s. Meanwhile, global power grid investment exceeded $480 billion in 2025, underpinning sustained demand for equipment across regions.
Key market drivers include:
- AI data center expansion increasing power loads
- Grid modernization and renewable integration
- Persistent transformer supply constraints
- Rising overseas orders from the Middle East and other regions
Sieyuan Electric 2025 performance snapshot:
| Metric | 2025 Result | Year on Year Change |
| Operating revenue | RMB 21.205 bn | +37.18% |
| Net profit | RMB 3.163 bn | +54.35% |
| Operating cash flow | RMB 2.228 bn | Slight decline |
Strong overseas contracts and disciplined execution lifted profits well above expectations. Analysts at Western Securities described the results as robust and reiterated a Buy rating, citing long-term demand visibility for Asian power equipment makers.
