In the digital era, the construction of data center infrastructure has become an overarching trend, with telecom operators, major internet companies, and cloud service providers all accelerating their data center deployments. Governments worldwide are placing greater emphasis on digital infrastructure development and industrial digitalization—key technological priorities—to address the transformative shifts brought about by the explosive growth in traffic and data across industries, strengthen national competitiveness in the digital economy, and usher in a new upturn in data center construction. Furthermore, online education, telemedicine, e-commerce, and video entertainment have emerged as the “new normal,” playing a vital role in daily life while simultaneously spurring increased demand for computing infrastructure such as data centers. The rapid advancement of cloud computing and artificial intelligence applications has become a major driver behind the onset of a new investment cycle for cloud infrastructure.

1. Data Center Industry Value Chain

As a comprehensive system, data centers comprise numerous components, with upstream industries supplying various types of accessories, primarily including electronic components, magnetic components and materials, structural parts, batteries, and air-conditioning components.

The downstream segment primarily comprises end-users across various industries, including data centers, the internet, telecommunications, finance, government, and many other application markets. With the rapid growth of China’s information industry, UPS power supplies—acting as protective devices for information equipment—are being increasingly adopted across these sectors. Rising demands from downstream industries for product performance, energy efficiency, and other key metrics are driving innovation and continuous upgrades in UPS technology.

2. Major Listed Companies

(1) Kehua Data (002335.SZ)

Kehua Data’s core business spans three major segments: the data center industry, the smart power industry, and the new energy industry. Among these, the data center segment accounts for the largest share of revenue and encompasses modular UPS systems, battery cabinets, power distribution cabinets, environmental monitoring systems, modular data centers, containerized data centers, and related product and system solutions. The new energy segment focuses on renewable energy applications such as energy storage and photovoltaics, with key offerings including PV inverters, off-grid PV controllers, energy storage converters, and off-grid inverters, along with corresponding supporting system solutions.

(2) Yishite (300376.SZ)

Easit was once a subsidiary of Schneider Electric, a Fortune Global 500 company. The company’s core business is centered on three strategic segments: 5G+ smart power supplies, data centers, and smart energy, making it a global provider of comprehensive solutions for the digital industry and smart energy.

(3) INVT (002334.SZ)

INVT is a leading domestic provider of high-end power solutions, offering intelligent power supply solutions for customers in areas such as UPS systems, data centers, photovoltaic power generation, and power transmission and distribution, thereby enhancing the efficiency and cleanliness of energy utilization.

(4) KSTAR (002518)

KSTAR is an intelligent network energy solutions provider specializing in data centers (IDCs) and new energy. As a pioneer in China’s uninterruptible power supply industry and a leading provider of integrated, secure power environment solutions, KSTAR’s R&D and manufacturing of critical infrastructure for data centers, photovoltaic power generation systems, energy storage systems, and new-energy vehicle charging products are all at the forefront of the industry. Its comprehensive, integrated solutions are widely deployed across various sectors.

3. Industry Policy Support and Impact

Looking ahead, the mainstream direction of data center development will be to focus on upgrading and transforming the traditional data center industry, expanding effective investment, and advancing the construction of new-generation computing infrastructure.

4. Development Trends in the Data Center Industry

As the digital economy accelerates, computing power has emerged as a critical component of societal productivity, with data centers serving as the foundational infrastructure for digital transformation. According to data from the National Energy Administration, in 2022, electricity consumption by data centers nationwide reached 270 billion kilowatt-hours—more than twice the cumulative generation of the Three Gorges Power Station during the same period, which totaled 103.649 billion kilowatt-hours—and accounted for approximately 3% of total national electricity consumption. Based on these figures, carbon emissions from data centers are estimated at around 168 million metric tons, representing roughly 1.46% of China’s total CO₂ emissions. Driven by policies such as “carbon neutrality” and the “East Data, West Computing” initiative, the adoption of advanced energy-storage technologies in data centers has become an inevitable trend. Current UPS battery-room-based storage systems still require backup diesel generators, whereas next-generation data-center energy-storage systems must be capable of providing hour-long power supply, with storage and power-delivery capacities far surpassing those of conventional battery rooms. Lithium-ion UPS systems offer significant technical advantages over lead-acid batteries: their energy density is several times higher, reducing both footprint and weight by more than 60%; they exhibit superior high-temperature tolerance; they can rapidly recharge after discharge; their cycle life is four times that of lead-acid batteries; and their design for a 10–15-year service life combined with high cycle counts eliminates the need for replacement throughout the UPS’s entire lifecycle, thereby lowering maintenance costs and ultimately reducing overall operating expenses for users while delivering greater business value. In addition, lithium-ion UPS systems feature comprehensive protection functions, including reverse-battery connection protection, overcharge protection, overload protection, over-temperature protection, and output short-circuit protection. Their rack-mounted installation further enhances performance in terms of size, layout, aesthetics, and reliability.

Therefore, lithium-ion UPS systems are expected to see accelerated adoption and deployment in the construction of new-generation data centers in China. In July 2021, the Ministry of Industry and Information Technology issued the Three-Year Action Plan for the Development of New-Generation Data Centers (2021–2023), which calls for supporting the exploration of lithium batteries, hydrogen storage, and flywheel energy storage as diversified energy-storage and backup-power solutions for data centers.

Driven by the maturation of lithium-battery technology, its widespread adoption, and the gradual reduction in costs, numerous UPS manufacturers are actively deploying lithium-battery-based UPS systems. Lithium-battery–specific BMS management technologies are now dominated by leading UPS vendors and are being rapidly rolled out in applications such as retrofit projects at large hospitals, integration with medical equipment, and uninterrupted power supply for research institutions. Looking ahead, as the coordinated development of next-generation data centers gains momentum, lithium-battery UPS systems are expected to see accelerated deployment across national hub nodes, regional next-generation data centers, edge data centers, and various “old, small, and fragmented” data centers.

For more industry information, please refer to PwC Consulting’s “ Panoramic Research Report on the Data Center Industry and Investment Outlook Forecast for 2024–2030 In addition, PwC Strategy& provides a wide range of services, including industry research reports, supply-chain consulting, project feasibility studies, certification as a “Specialized, Refined, Distinctive, and Innovative ‘Little Giant’” enterprise, national-level certification as a Manufacturing Single-Champion Enterprise, development of the 14th Five-Year Plan, post-project evaluation reports, business plans (BPs), industry maps, industrial planning, blue and white papers, feasibility studies for IPO fundraising projects, and advisory services on IPO working papers.