GO
| HSI1 | 24,403.96 | -89.99 | 145.51B |
| HSCEI1 | 8,179.55 | -60.50 | 34.98B |
| Back Zoom + Zoom - Block Traded | |
|
2026-06-16 13:57:18 UBS published a research report stating that, based on strong demand signals and the potential easing of high-end computing supply, China癒礎s internet data center (IDC) industry is expected to accelerate significantly starting from 2H26. With a highly integrated nationwide power grid and telecommunications network, China is well positioned to support AI-driven demand. The bank names GDS Holdings Limited (GDS.US) and VNET Group, Inc. (VNET.US) as its top picks in the sector. Given improved visibility on supply and demand, UBS raised its industry forecasts by increasing its net additional utilized IT load projections for 2026 to 2028 by 4%, 25% and 22%, respectively, to 4.0 gigawatts, 5.8 gigawatts and 6.7 gigawatts. It expects total utilized IT load to reach 31 gigawatts by 2028, implying a compound annual growth rate of over 25%. UBS data show that the upward trend in IDC utilization remains resilient. Supported by strong token demand and rising domestic chip production, order backlogs of major cloud service providers have extended to 2H27. The bank noted that key direct beneficiaries of AI are trading below their historical averages and peers. Due to weak market confidence in order execution and computing supply, faster-growing IDC operators in China have been assigned lower valuations. UBS believes the current level offers a highly attractive early-cycle investment opportunity. (ad/u)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |