The synergy between computing power and electricity drives the demand for green energy; institutions recommend three main strategies.

On March 17, many power stocks opened lower and then rose, with several hitting the daily limit. By the morning close, the sector increased by 0.66%, leading industry sectors in gains. Individual stocks such as Huadian Liaoning Energy, Zhaoxin Shares, Xineng Technology, Jiangsu New Energy, Zhejiang New Energy, and Energy-saving Wind Power hit the daily limit. China Power New Energy rose over 8%, Greenland Power and Lixin New Energy increased over 5%, while Shimao Energy, Solar Energy, and Xintian Green Energy gained over 3%.

Computing and Power Collaboration Boosts Green Power Demand

The 2026 government work report explicitly states: “Implement large-scale intelligent computing clusters, computing and power collaboration, and other new infrastructure projects; strengthen nationwide integrated computing power monitoring and dispatch; support the development of public clouds.” This marks the first time “computing and power collaboration” has been included in the national new infrastructure category.

As early as 2024, policies such as the “Action Plan for Accelerating the Construction of a New Power System (2024–2027)” and the “Special Action Plan for Green and Low-Carbon Data Center Development” were introduced, clearly initiating pilot projects for computing and power collaboration. Notably, by the end of 2025, a preliminary bi-directional collaboration mechanism between computing power and electricity is expected to form, with over 80% of new data centers at national hub nodes powered by green electricity.

Against the backdrop of rapid development in AI large models and the digital economy, the explosive growth in computing demand is significantly increasing data center energy consumption and electricity needs. Data from China Academy of Information and Communications Technology shows that by June 2025, the global computing device capacity reached 4,495 EFlops, a 117% increase. Some computing hubs may face power shortages, as existing grid transmission and distribution capacity may struggle to meet the rapidly growing electricity demand from computing.

[Image: Global computing capacity and growth rate, China Academy of Information and Communications Technology]

Based on regional comparisons of electricity consumption and generation in 2025, power supply in Beijing-Tianjin-Hebei, Yangtze River Delta, and Guangdong-Hong Kong-Macao Greater Bay Area all show gaps. Local green power supplies are insufficient for data centers, with Jiangsu, Zhejiang, and Guangdong experiencing the largest deficits at 245.8, 234.9, and 249.5 billion kWh respectively.

Data centers are high-energy-consuming industries, with electricity costs being a core part of operational expenses. According to Huachuang Securities, electricity costs account for up to 56.7% of data center operating costs, making it the largest expense. The low electricity prices of green power offer an effective way to reduce costs. As AI drives rapid expansion of data centers, the proportion of intelligent computing power continues to rise. By 2026, China’s total computing capacity is expected to reach 767 EFlops, with 73% of that being intelligent computing power.

Three Main Lines of Computing and Power Collaboration

Guosheng Securities notes that recent policies in key computing regions are accelerating the implementation of computing and power collaboration. The “East Data, West Computation” project includes eight national computing hubs: Beijing-Tianjin-Hebei, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, Chengdu-Chongqing, Guizhou, Inner Mongolia, Gansu, and Ningxia. Corresponding clusters are Zhangjiakou, the Yangtze River Delta eco-green demonstration zone with Wuhu, Shaoguan, Tianfu, Chongqing, Gui’an, Hohhot, Qingyang, and Zhongwei.

[Image: Distribution of China’s computing hubs and clusters, International Science and Technology Innovation Center]

Main Line 1: Integrated Computing and Power Operators
These companies have the most potential for revaluation under upgraded business models. They possess resources on the power supply side, trading capabilities such as power sales, distribution, and virtual power plants, and are beginning to enter computing power leasing and data center services. Their revenue models are evolving from traditional “generation volume × electricity price” to “green power supply + energy services + computing services + environmental rights,” offering the greatest profit leap.

Main Line 2: Green Power Operators in Computing Hub Regions
“Compute with electricity” is currently the most mature and visible path. With policies increasing the share of clean energy in data centers, the site selection logic has shifted from “near customers and networks” to “prioritizing proximity to low-cost, sustainable, tradable clean energy.” Direct green power connection reduces electricity costs and locks in long-term energy prices. Profitability analysis for data centers must now consider power supply structure, trading capacity, green power ratio, and peak-shaving ability. Direct green power connection is the most economical and has the greatest impact on project returns, especially suitable for wind and solar-rich western regions like Ningxia, Inner Mongolia, Gansu, and Qinghai, where land and electricity costs are lower.

Main Line 3: Grid Upgrades and Intelligent Dispatching
Data centers demand higher standards for cross-regional grid capacity, dispatching, and smart grid technology. Their high, continuous loads require stable power supply, efficient dispatching, and high power quality. Additionally, the distribution of data centers often does not match energy resource locations. Upgrading grid cross-regional capabilities, dispatching, and smart systems—such as microgrid energy storage, virtual power plants, and smart grid dispatching—will see significant demand.

In the A-share market, driven by multiple favorable factors, green power concept stocks have recently attracted strong investor interest, with share prices rising accordingly. According to Eastmoney Choice data, since the beginning of the year, green power concept stocks have seen a net financing inflow of 9.31 billion yuan, with the latest financing balance at 82.64 billion yuan, up nearly 13% from the start of the year. As of midday March 17, about 90% of these stocks have increased in price this year, with a median rise of 16.5%.

(Source: Eastmoney Research Center)

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