Event:
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. 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.
Comments:
Eastern digital Western computing was officially launched and continued to be optimistic about the market of the communication sector
The 14th five year plan for information and communication, digital economy, East West calculation and other policies continue to drive, and we continue to be optimistic about the market of the communication sector.
Our investment suggestions for the communication sector:
1. IDC providers directly benefit from the theme of “East digital West computing”:
(1) as the main supplier of IDC in China, it is optimistic about the value revaluation of the three operators, and it is recommended to pay attention to [ China Telecom Corporation Limited(601728) , China Mobile, China United Network Communications Limited(600050) ];
(2) third party IDC leaders suggest paying attention to [ Beijing Sinnet Technology Co.Ltd(300383) , Shanghai Baosight Software Co.Ltd(600845) , Wanguo data, Guangdong Aofei Data Technology Co.Ltd(300738) , Kehua Data Co.Ltd(002335) , Shenzhen Envicool Technology Co.Ltd(002837) ], etc;
2. In our annual strategy, we emphasize that 5g construction investment is expected to transition from wireless side to wired side. The optical communication sector is upstream of IDC and benefits from the construction of digital computing in the East and digital computing in the west, including:
(1) main equipment suppliers benefit from the expansion of backbone network construction, and it is recommended to pay attention to [ Fiberhome Telecommunication Technologies Co.Ltd(600498) , Zte Corporation(000063) ];
(2) the construction of data center will stimulate the demand for optical fiber and optical cable. It is recommended to pay attention to [ Jiangsu Zhongtian Technology Co.Ltd(600522) , Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) , Hengtong Optic-Electric Co.Ltd(600487) ];
(3) the construction of data center will boost the volume of optical modules in China’s digital communication market. It is recommended to pay attention to [ Eoptolink Technology Inc.Ltd(300502) , Zhongji Innolight Co.Ltd(300308) , Accelink Technologies Co.Ltd(002281) , Suzhou Tfc Optical Communication Co.Ltd(300394) ].
The responsible comrade of the high technology department of the national development and Reform Commission answered a reporter’s question on the situation of “counting from the east to the west”.
I. Q: please introduce the background of the implementation of the project of “counting from the east to the west”
A: at present, a new round of scientific and technological revolution and industrial reform are reshaping the global economic structure. As the core productivity of digital economy, computing power has become a new focus of global strategic competition. 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). 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, 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.
At present, 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. Therefore, we should give full play to the advantages of China’s system and mechanism, integrate the layout from a national perspective, optimize the allocation of resources and improve the efficiency of resource use.
II. Q: what is the significance of implementing the project of “counting from the east to the west”?
A: the implementation of the project of “counting from the east to the west” to promote the rational layout of data centers, optimize supply and demand, green intensification and interconnection has many meanings: first, it is conducive to improving the overall computing power level of the country. Through the layout and construction of the national integrated data center, expand the scale of computing facilities, improve the efficiency of computing power, and realize the large-scale and intensive development of computing power in the country. Second, it is conducive to promoting green development. Increasing the layout of the data center in the West will greatly increase the proportion of green energy use, absorb green energy in the West nearby, and continuously optimize the energy use efficiency of the data center through technological innovation, large for small, low-carbon development and other measures. Third, it is conducive to expanding effective investment. The data center has a long industrial chain, large investment scale and strong driving effect. Through the construction of computing hub and data center cluster, it will effectively drive the upstream and downstream investment of the industry. Fourth, it is conducive to promoting coordinated regional development. Through the layout of computing facilities from east to west, it will drive the effective transfer of relevant industries, promote the data circulation and value transmission between the East and the west, extend the development space in the East, promote the western development and form a new pattern.
III. Q: what is the general idea of implementing the project of “counting from the east to the west”?
A: (I) promote the moderate agglomeration and intensive development of national data centers. Through the layout of 8 computing hubs nationwide, guide large and super large data centers to gather in the hub to form a data center cluster. Give play to the effect of scale and intensification, increase policy support, improve the scale and efficiency of the overall computing power, and drive the development of upstream and downstream industries related to the data center. Between computing hubs, open up high-speed data transmission networks, strengthen cloud network integration and multi cloud collaboration, promote efficient complementarity and collaborative linkage of computing power between the East and the west, and accelerate the rational layout, optimization of supply and demand, green intensification and interconnection of national data centers.
(II) promote the echelon layout and overall development of the data center from east to west. On the one hand, accelerate the large-scale layout of the data center to the west, especially for businesses with low network requirements such as background processing, offline analysis, storage and backup, which can be transferred to the West first and undertaken by the western data center. On the other hand, due to the delay caused by long-distance network transmission and related supporting facilities, the western data center can not meet all computing power needs. Some businesses with high network requirements, such as industrial Internet, financial securities, disaster early warning, telemedicine, video call and artificial intelligence reasoning, can be arranged in Eastern hubs such as Beijing Tianjin Hebei, Yangtze River Delta, Guangdong, Hong Kong and Macao Bay area. Within the hub, we should focus on promoting the transfer of data centers from first tier cities to the surrounding areas to ensure that computing power deployment is related to land, energy, water The coordination and sustainability of electricity and other resources.
(III) realize the gradual and rapid iteration of “counting from the east to the west”. In order to resolutely avoid the blind development of data centers, at the current initial stage, 10 data center clusters are planned and established in 8 computing hubs, the physical boundary is delimited, and the development goals of green energy conservation and shelf availability are defined. For example, the average shelf rate of data centers in the cluster should reach at least 65%, and the utilization rate of renewable energy should be significantly improved. Through multi index constraints, promote high standards and strict requirements of clusters and minimize the start. The cluster development will be dynamically monitored to scientifically evaluate the development level and saturation degree of cluster computing power. In combination with the development situation, we will continue to optimize and improve the layout in the future, timely expand the cluster boundary or increase clusters, demonstrate the new computing power hub, and realize the overall, orderly and healthy development of computing power.
IV. Q: in the next step, how to speed up the construction of an integrated computing power system of “counting from the east to the west”?
A: we should further strengthen overall planning, give play to the superposition effect of policies, promote the optimization and layout of computing power and the reform and innovation of system and mechanism, accelerate the improvement of the influence and cohesion of the eight computing power hubs, and drive the coordinated development of national computing power integration. First, strengthen the connection of network facilities. Speed up the opening of the direct data connection channel between the East and the west, and create a number of demonstration lines of “counting from the east to the west”. Optimize the communication network structure, improve the network node level of the national data center cluster, and improve the network transmission quality. Second, strengthen the linkage of energy layout. Strengthen the integrated design of data center and power network, and promote renewable energy power generation enterprises to supply power to the data center. Support data center clusters and supporting renewable energy power stations. For the data center projects that have achieved outstanding results in the implementation of “counting from the east to the west”, priority shall be given to the support of energy consumption indicators. Third, support the integration of technological innovation. Encourage technological innovation and model innovation in data center energy conservation and carbon reduction, renewable energy power supply, heterogeneous computing power integration, cloud network integration, multi cloud scheduling, data security circulation and other technologies, and strengthen the R & D support and large-scale application of key technology products. Fourth, promote industrial growth and ecological development. Support the improvement of the industrial ecosystem of the data center, and strengthen the agglomeration and landing of the upstream equipment manufacturing industry and downstream data element circulation, data innovative applications and new consumer industries of the data center. Support the Western computing hub to develop labor-intensive industries such as data processing, data cleaning and data content services around the data center.
Risk analysis
(1) 5g commercial progress is less than expected. The scale of 5g investment is large, and all parties in the industrial chain need to actively cooperate to promote network construction. There is a risk that the commercial progress is less than expected due to insufficient investment, poor maturity of the industrial chain, or lack of 5g application.
(2) Sino US trade frictions escalated. 5g is an important direction of the big country game. Some American enterprises have stopped supplying and authorizing. There is a risk that the continuous escalation of Sino US trade friction will affect Huawei’s production progress, and then affect the production and operation of the network construction industrial chain.
