GrowthResearch: "AI to Trigger a Supercycle in Electric Power Equipment"

As the demand base for electric power equipment expands, industry analysts suggest that the sector has entered a new phase of growth.

Independent research firm GrowthResearch stated this in an electric power equipment industry report on June 22. The company explained that, in addition to the replacement demand for aging North American power grids that drove performance in 2023 and 2024, a surge in new transmission and substation infrastructure to support artificial intelligence (AI) data centers is now emerging in earnest. This combination has significantly increased the prospects for a long-term boom in the electric power equipment market.

According to the report, as generative AI evolves into agentic AI, ensuring stable, 24-hour electricity supply has become essential. Consequently, global data center electricity demand is expected to more than double between 2024 and 2030. Combined capital expenditures by major cloud companies such as Google, Amazon, Meta, and Microsoft are projected to reach approximately $740 billion this year. As investments from big tech companies accelerate, anticipated data center electricity usage and grid connection demand are soaring, prompting U.S. private power utilities to increase capital expenditures at a rate of 11–12%—well above the 10-year average of 7%.

Additionally, investment in ultra-high-voltage 765kV transmission lines, known as "power highways" for delivering large-scale electricity over long distances, is gaining momentum across North America. The Midcontinent Independent System Operator (MISO), responsible for the U.S. Midwest, has approved a $21.8 billion long-term expansion plan, designating 9 out of 24 projects for the 765kV level. Other major grid operators, including PJM and ERCOT, are also steadily confirming the adoption of these transmission lines. This expansion of ultra-high-voltage transmission networks is closely linked to the repeated procurement of transformers, circuit breakers, and switchboards for large-scale campus-style AI data centers.

Yonghee Han, a researcher at GrowthResearch, stated, "As the growth axis of the electric power equipment industry shifts toward the construction of new power grids, companies with technological prowess, a proven delivery track record, and local production capabilities in North America will be best positioned to benefit."

This content was produced with the assistance of AI translation services.