AI Ignites Global Electricity Demand: Chinese Transformers Become a "Hard Currency" Overseas

AI Ignites Global Electricity Demand: Chinese Transformers Become a "Hard Currency" Overseas

—Made in China Solidifies Energy Foundation for the Computing Power Era, Orders Booked Until 2028(April 2026, Joint Report by Electric Power News Agency/China News Service)

The global explosion of AI computing power has triggered a "power equipment shortage," with once-obscure transformers becoming a "hard currency" in high demand in the international market. As the world's largest transformer producer, China, leveraging its complete industrial chain advantages, rapid delivery capabilities, and high cost-effectiveness, has seen its products sweep across markets in Europe, America, Southeast Asia, the Middle East, and Latin America. In 2025, exports reached 64.6 billion yuan, a year-on-year surge of 35.6%; in the first two months of 2026, exports increased by another 41%-61%, with exports to the US soaring by 182% and exports to Europe surging by 138%. Leading companies have orders booked until the end of 2027-2028, creating a scene of "global scramble for goods and long queues for orders."

AI Computing Power "Electricity Tiger" Creates Hundreds of Billions in Demand The industrialization of AI large-scale models is completely reshaping the demand landscape for power equipment. Traditional data center rack power is only 5-10kW, while AI computing centers see rack power soar to 50-100kW, with some exceeding 300kW. A 100MW AI data center requires a 450MVA transformer, a load equivalent to a medium-sized city. Ultra-large-scale AI clusters have stringent voltage stability requirements (fluctuations <3%), driving a surge in demand for low-loss, high-overload, and harmonic-resistant special transformers.

Global supply and demand are severely imbalanced, with a market gap of approximately 30%. Delivery cycles in Europe and the US are as long as 18-24 months, with some high-end models exceeding 30 months. China, with 60% of global production capacity, delivers regular orders in 6-10 months, and urgent projects in as little as 3-5 months. Wood Mackenzie, Goldman Sachs, and other institutions predict this shortage will continue until 2028.

Multiple Advantages Make Chinese Transformers the Preferred Choice Overseas

The core reason Chinese transformers stand out in the global market lies in four comprehensive advantages, precisely meeting overseas needs and forming an irreplaceable competitive advantage:

First, the entire industry chain is independently controllable, achieving both cost-effectiveness and high quality. From Baosteel's leading grain-oriented silicon steel to various components, China has achieved complete self-sufficiency across the entire supply chain, freeing itself from the constraints of overseas supply chains. Product prices are only 1/2 to 2/3 of those in Europe and America, and even after tariffs, they remain highly cost-effective.

Secondly, delivery efficiency is globally leading, precisely addressing market pain points. Regular orders are delivered in 6-10 months, and urgent projects in as little as 3-5 months, far shorter than the 18-24 month cycle in Europe and America. Companies operate at full capacity to meet orders, helping customers mitigate project delay risks.

Thirdly, technology is highly adaptable, with a complete certification system. Customized models are designed for different regional operating conditions, adapting to the stringent requirements of AI data centers, and fully complying with international standards such as IEC and IEEE, as well as regional certifications in various countries, allowing direct entry into overseas markets.

Fourthly, a comprehensive service system enhances customer loyalty. A full-chain service encompassing "products + installation + operation and maintenance + technical support" is built, with overseas service stations providing 24-hour response, solving the pain point of "easy procurement, difficult operation and maintenance" for customers.

Made in China Sees Simultaneous Increase in Quantity and Price, Core Advantages Lead the World

China's transformer exports are showing a triple trend of "increased volume, rising prices, and structural upgrades": the average price per unit has risen to 205,000 yuan, a year-on-year increase of 33%, shifting from "low-price, high-volume" to "high-quality, high-price." Core competitiveness is concentrated in three dimensions:

1. Self-sufficiency and control over the entire industrial chain, achieving both cost and efficiency advantages

From grain-oriented silicon steel (Baosteel is a global leader), copper and aluminum materials to insulating components, China has achieved full self-sufficiency across the entire chain, free from bottlenecks in the overseas supply chain. Large-scale production combined with intelligent workshops results in costs 20%-30% lower than in Europe and the United States, maintaining a significant price advantage even with tariffs. Factories in major production areas such as Jiangxi, Jiangsu, and Henan operate 24/7 with three shifts and production lines running at full capacity; some companies have urgently expanded production by 30%-50%, yet demand still exceeds supply.

2. Delivery speed "crushes" the global market, securing overseas orders

"China's delivery cycle is only 1/5 of that of Europe and the United States" has become a core competitive advantage. Taking Jiangxi Transformer Technology as an example, its order backlog reached nearly 700 million yuan in 2026, with exports accounting for over 90%, covering the US, Russia, Indonesia, Malaysia, Africa, and South America. Changzhou, Jiangsu, known as the "World Transformer Capital," saw exports exceed 650 million yuan in the first two months, a year-on-year increase of 70%. Overseas customers have shifted from "price comparison" to "capacity grabbing," willing to pay a 20% premium to secure supply, and even prepaying in full to queue.

3. Technology Adaptable to Global Scenarios, Complete Certifications: Products fully comply with IEC 60076, IEEE, ANSI, and regional standards such as Pakistan's WAPDA and the Middle East's SASO. Customized low-loss (S13/S15), high-temperature resistant (50℃+), and dustproof and moisture-proof models are available for AI data centers, adapting to extreme overseas operating conditions. Leading companies such as TBEA, China XD Electric, and Baobian Electric have overcome 500kV+ high-voltage technology challenges, securing mega-orders such as 16.4 billion yuan from Saudi Arabia and over 800 million yuan from the EU, demonstrating significant breakthroughs in the high-end market. Overseas markets are booming, with strong demand in emerging regions.

- North America: US AI giants are expanding production at an alarming rate, with 80% of large transformers still imported. China's exports to the US surged by 182%, and companies like Microsoft and Amazon are actively seeking to secure production capacity from Chinese manufacturers.

- Europe: Energy transition, grid upgrades, and AI demand combined have led to a 138% increase in exports to Europe, with Greece, Spain, and Denmark emerging as key markets.

- Asia Pacific/Middle East: Infrastructure and data center development in Pakistan, Indonesia, Saudi Arabia, and the UAE has led to a surge in demand for oil-immersed transformers and prefabricated substations. Chinese products dominate the market due to their cost-effectiveness and rapid delivery.

- Latin America/Africa: Strong demand for grid upgrades has doubled year-on-year, with Chinese transformers becoming the preferred supplier.

New Industrial Landscape: From "Manufacturing Giant" to "Intelligent Manufacturing Powerhouse"

This surge is not a short-term boon, but a structural opportunity arising from the convergence of the AI revolution, energy transition, and global supply chain restructuring. Chinese transformer companies are accelerating their upgrades: on the one hand, they are advancing the R&D of high-voltage, large-capacity, and intelligent products to seize the high-end market; on the other hand, they are optimizing their overseas service networks to provide a complete "product + installation + operation and maintenance" solution. Industry experts point out that transformers have become the "energy heart" of the AI era, and China, with its complete industrial system and rapid response capabilities, is dominating the global supply landscape. 2026-2028 will be a golden period of expansion, and leading companies with advantages in technology, certification, and delivery will continue to share in the multi-billion dollar global computing infrastructure market.

Company Strategy: Chenghe Electric Technology Seizes Opportunities, Anchors Future Development

Faced with the explosive growth and structural opportunities in the global transformer market, Chenghe Electric Technology Co., Ltd. has seized the opportunity, clearly defined its future direction for transformer production and sales, and is making precise strategic deployments and proactive efforts to strive for breakthroughs during the industry's golden age. On the production side, the company will focus on the core needs of the AI era, prioritizing the R&D and production of low-loss, high-stability, and harmonic-resistant special transformers, as well as oil-immersed and dry-type transformers. Drawing on advanced industry experience, the company will upgrade its intelligent production workshops, optimize production processes, and rationally expand production capacity to ensure delivery efficiency. This will guarantee both product quality and delivery speed, aligning with the global market's core demand for "seizing production capacity and ensuring delivery." The company will also strictly adhere to international standards such as IEC and IEEE, as well as regional certification requirements in various countries, adapting to the diverse operating conditions of overseas markets.

On the sales side, Chenghe Electric Technology will leverage its advantages across China's entire industry chain to cultivate core overseas markets, focusing on high-demand regions such as the Asia-Pacific, Middle East, and Latin America, particularly emerging markets like Pakistan and Indonesia where infrastructure and data center development are booming. The company will specifically promote products adapted to the high-temperature and dusty conditions of these regions. Simultaneously, it will expand into the high-end markets of North America and Europe, increasing the proportion of high-value-added products and shifting from "low-price competition" to "high-quality, high-price" competition. In addition, the company will improve its full-chain service system of "products + installation + operation and maintenance + technical support", learn from the industry's integrated development model, strengthen the construction of overseas service stations, improve 24-hour response capabilities, enhance customer stickiness, and at the same time keep up with the global energy transition and AI computing power development trends, continuously optimize product structure, help upgrade global power infrastructure, and achieve synergistic development between the company and the industry.

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