Event: on February 17, 2022, according to the official website of the national development and Reform Commission, the national development and Reform Commission, the central network information office, the Ministry of industry and information technology and the National Energy Administration recently jointly issued a document agreeing to start the construction of National Computing hub nodes in Beijing, Tianjin and Hebei, the Yangtze River Delta, Guangdong, Hong Kong, Macao, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, Zhangjiakou cluster and other 10 national data center clusters are planned. So far, the overall layout design of the national integrated big data center system has been completed, and the “counting from the east to the west” project has been officially launched.
Computing power has become an infrastructure, and the demand for relevant resources is urgent. The scale of China’s data center has reached 5 million standard racks, and the computing power has reached 130eflops. With the continuous development of digital economy, the demand for computing power in the whole society is still very urgent, and it is expected to grow rapidly at a rate of more than 20% every year. Computing power has become an important infrastructure for national economic development. Accelerating the construction of computing power will effectively stimulate the innovation vitality of data elements, accelerate the process of digital industrialization and industrial digitization, give birth to new technologies, Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , new business forms and new models, and support high-quality economic development.
“Counting from the east to the west” is of great significance. We should improve the level of computing power and optimize the allocation of resources. Most of China’s data centers are located in the eastern region. Due to the increasing shortage of land, energy and other resources, it is difficult to sustain the large-scale development of data centers in the eastern region. Western China is rich in resources, especially renewable energy, and has the potential to develop data centers and undertake the computing power needs of the East. It is of great significance to promote the rational layout of data centers, optimize supply and demand, improve the overall computing power level of the country, expand effective investment and promote regional coordinated development.
The logic of data communication side is determined to seize the great opportunity of new infrastructure construction. We believe that the full launch of the “digital computing from the east to the west” and the development direction determined by the digital economy will be a great opportunity for the whole digital communication side. The continuous and rapid growth of computing power and flow is an inevitable trend. The continuous construction and expansion of supporting infrastructure is a rigid demand and has high certainty in the next 3-5 years. Combined with the current global development trend of science and technology, technology giants at home and abroad have increased their investment and layout. In the future, they all point to the deterministic opportunities of computing power and traffic. The development of computing power, traffic and even applications will also drive the construction of mobile networks, and 5g and related industrial chains will continue to benefit as the core.
Investment suggestion: core asset operators: China Mobile 600941, China Telecom Corporation Limited(601728) 601728, China United Network Communications Limited(600050) 600050. High quality leading companies on the flow bearing side: Eoptolink Technology Inc.Ltd(300502) 300502, Suzhou Tfc Optical Communication Co.Ltd(300394) 300394, Zhongji Innolight Co.Ltd(300308) 300308. IDC： Guangdong Aofei Data Technology Co.Ltd(300738) 300738、 Kehua Data Co.Ltd(002335) 002335、 Beijing Sinnet Technology Co.Ltd(300383) 300383。 Communication infrastructure: Zte Corporation(000063) 000063, Fujian Star-Net Communication Co.Ltd(002396) 002396. Cabinet energy saving and temperature control: Shenzhen Envicool Technology Co.Ltd(002837) 002837, Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) 603912.
Risk tip: 5g progress does not meet expectations and trade friction intensifies.
