Event: the national development and Reform Commission and other departments jointly issued a notice, agreeing to start the construction of National Computing hub nodes in 8 places, including Beijing, Tianjin, Hebei, Yangtze River Delta, Guangdong, Hong Kong, Macao, Dawan District, Chengdu, Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and planned 10 national data center clusters, which means that the overall layout design of the national integrated big data center system has been completed, The project of “counting from the east to the west” was officially launched. The project is another large-scale cross regional resource allocation project after the west to East power transmission and the South-to-North Water Transfer.
We will promote the rational distribution of resources and realize the optimal allocation of computing power across the country. With the rapid development of digital economy, China’s demand for computing power is growing day by day, and computing power has gradually become an indispensable precious resource in our social life. At present, most of China’s data centers are built in the eastern region where land and energy consumption resources are relatively scarce. In the future, how to smoothly transfer the demand for computing power to the western region with excellent regenerative capacity and abundant resources has become an important problem to be solved urgently in the development of the national economy. The official launch of the “counting from the east to the west” project means that the tense situation of computing power in China will be greatly alleviated, the coordination of regional development will be effectively improved, and the optimization of national computing power allocation will be realized.
Policies boost the efficiency of data centers, and land energy consumption in first tier cities has become a scarce resource. For data centers, the requirements for energy consumption indicators are becoming more stringent. The scarce land and energy consumption indicator resources in first tier cities are becoming the core elements of competition among major data center manufacturers. The three-year action plan for the development of new data centers (2021-2023) issued by the Ministry of industry and information technology in July 2021 requires that by the end of 2021, the average utilization rate of national data centers should be increased to more than 55%, and the pue of new large and above data centers should be reduced to less than 1. By the end of 2023, the average utilization rate of national data centers will strive to increase to more than 60%. The clear guidance of policies is conducive to accelerating the construction of new data centers and improving the overall resource utilization level of the industry. Enterprises with high resource utilization rate are expected to increase market share.
The strategic position of the data center should not be underestimated, enabling the western region to enhance business value. The data center undertakes the basic functions of digital economy operation, and its importance and strategic position are self-evident. The bearing and operation of AI, cloud computing, blockchain and other applications all need the bottom support of the data center. The “counting from the east to the west” project successfully makes use of the natural resources and cost advantages of the western region. The construction of data center can not only bring investment to the relatively backward areas in the western region and help the adjustment of local industrial structure and economic transformation, but also leverage the drainage and development of upper application through the construction of computing infrastructure.
Investment suggestion: digital economy is the strategic focus at the national level, and the “East digital West computing” project is a key step in optimizing the underlying technology of digital economy. With the rapid development of 5g era, the storage and calculation of a large amount of data is becoming a problem concerned by the whole society. The development of “East digital West computing” can not only solve this problem, but also optimize the allocation of computing resources in the country, Relevant domestic software manufacturers are expected to take the lead in benefiting from this process. Investment suggestions: 1) data governance: Shanghai Athub Co.Ltd(603881) , Beijing Vastdata Technology Co.Ltd(603138) , Beijing E-Hualu Information Technology Co.Ltd(300212) , Guangdong Aofei Data Technology Co.Ltd(300738) ; 2) Calculation basis: Inspur Electronic Information Industry Co.Ltd(000977) , Shanghai Baosight Software Co.Ltd(600845) etc; 3) Basic system construction: Dawning Information Industry Co.Ltd(603019) , Beijing Tongtech Co.Ltd(300379) , Beijing Baolande Software Corporation(688058) , Unisplendour Corporation Limited(000938) , etc. 4) Digital industry application: Longshine Technology Group Co.Ltd(300682) , Yonyou Network Technology Co.Ltd(600588) , Beijing Shiji Information Technology Co.Ltd(002153) , Beijing Kingsoft Office Software Inc(688111) , Iflytek Co.Ltd(002230) etc; 5) Data security protection: Dbappsecurity Co.Ltd(688023) , Qi An Xin Technology Group Inc(688561) , CICA security, Beijing Infosec Technologies Co.Ltd(688201) , etc. at the same time, focus on IDC, switches, servers and related green intensive construction industries.
Risk tip: the policy promotion is not as strong as expected; Technological innovation breakthrough is less than expected; The game between China and the United States intensifies; Slow transformation of traditional industries, etc.
