Talk every Monday:
Recently, the national development and Reform Commission, the central network information office, the Ministry of industry and information technology and the National Energy Administration jointly issued a notice, agreeing to start the construction of National Computing hub nodes in 8 places, including Beijing, Tianjin and Hebei, the Yangtze River Delta, Guangdong, Hong Kong, Macao, Dawan District, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and planned 10 national data center clusters. The overall layout design of the national integrated big data center system was completed, and the project of “counting from the east to the west” was fully launched.
Up to now, the scale of China’s data center has reached 5 million standard racks, and the computing power has reached 130 eflops (1.3 trillion floating-point operations per second). It is expected to grow rapidly at a rate of more than 20% every year. As the core productivity of digital economy, computing power has become the new focus of global strategic competition. With the comprehensive and continuous penetration of digital technology into all fields of economy and society, the demand for computing power in the whole society is still very urgent. Computing power has become an important infrastructure for national economic development.
At present, most of China’s data centers are located in the eastern region. A super large data center consumes nearly 100 million kwh of power every year. 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 East. 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.
The “number” in the East West calculation refers to data, and “calculation” refers to computing power. The East West calculation is to guide the computing power needs of the east to the West in an orderly manner, optimize the construction layout of the data center, optimize the allocation of resources and improve the efficiency of resource use by building a new computing power network system integrating data center, cloud computing and big data. The East and West nodes have their own emphasis, and the development goals of green energy conservation and shelf availability are clear.
The node in the western region is positioned as a national non real-time computing power support base, which mainly deals with businesses with low network requirements, such as background processing, offline analysis, storage and backup.
Some businesses with high network requirements are arranged in the eastern region. Limited by the time delay caused by long-distance network transmission, such as industrial Internet, financial securities, disaster early warning, telemedicine, video call, artificial intelligence, etc., they are arranged in the eastern node. Within the hub, we should focus on promoting the transfer of data centers from first tier cities to the surrounding areas to ensure the coordination and sustainability of computing power deployment and land, energy, water, electricity and other resources.
The average shelf rate of the data center in the cluster should reach at least 65%, and the utilization rate of renewable energy should be significantly improved. The pue value of the data center is required to be controlled below 1.2 in the Western node and below 1.25 in the eastern node, and the development of the cluster will be dynamically monitored.
Market review:
This week (2022.02.14-2022.02.18), the Shanghai Composite Index, Shenzhen Component Index and gem index increased by 0.80%, 1.78% and 2.93% respectively, and the Shenwan communication index increased by 2.14%, ranking 11th in Shenwan’s 28 primary industries. Performance of individual stocks in the communication sector this week:
The top five stock price increases are: * ST Shida, Henan Shijia Photons Technology Co.Ltd(688313) , Gci Science & Technology Co.Ltd(002544) , Wenzhou Yihua Connector Co.Ltd(002897) , Jiangsu Zhongtian Technology Co.Ltd(600522)
The top five stock price declines are: Super Telecom Co.Ltd(603322) , Urovo Technology Co.Ltd(300531) , Guangdong Tecsun Science & Technology Co.Ltd(002908) , Chutian Dragon Co.Ltd(003040) , Sichuan Tianyi Comheart Telecom Co.Ltd(300504)
Investment strategy: with the full implementation of counting from the east to the west, relevant industrial chains are expected to benefit. Through the construction of computing hub and data center cluster, it will effectively drive the upstream and downstream investment of the industry. The industries and targets benefiting include: 1) increased demand for network IT equipment, with key recommendations: Zte Corporation(000063) , Unisplendour Corporation Limited(000938) , Fujian Star-Net Communication Co.Ltd(002396) , Inspur Electronic Information Industry Co.Ltd(000977) ; 2) Data traffic explosion drives the demand for optical modules and optical fiber cables: Eoptolink Technology Inc.Ltd(300502) , Zhongji Innolight Co.Ltd(300308) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Jiangsu Zhongtian Technology Co.Ltd(600522) , Hengtong Optic-Electric Co.Ltd(600487) ; 3) IDC green energy-saving development, upstream temperature control equipment is expected to continue to benefit: Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) ; 4) Operators are expected to continue to give full play to the advantages of cloud collaboration. It is recommended to pay attention to China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) .
Risk tip: the development of 5g is not as expected, the trade friction between China and the United States has further escalated, and the epidemic has further spread
