“Counting from the east to the west” has become an important strategic project of China’s economic and social resource allocation in the era of digital economy, which has aroused strong concern in the capital market.
Li Jie, deputy director of the Institute of cloud computing and big data of the Chinese Academy of communications and communications, told the financial Associated Press: “The ‘East digital West computing’ project puts forward high requirements for data center design, pue, network operation and maintenance, and meets relevant standards. Companies with strong comprehensive strength can fully grasp the market opportunities of East digital West computing and pay attention to the development opportunities upstream and downstream of the whole industrial chain in the whole life cycle of the data center, such as data center, network, power supply and distribution equipment, refrigeration equipment and ICT equipment , data services and other markets. All links complement each other and develop in a coordinated way, which is good to a certain extent. ” Huaan Securities Co.Ltd(600909) communication industry analyst Zhang Tianze said: “at present, the East digital West computing project is in the initial stage, and the specific implementation rules are still being formulated. At this stage, it is possible that the improvement and transformation of the shelf rate of stock projects will be a key point. In the short term, it is suggested to pay attention to the energy-saving transformation of IDC and the cloud network industrial chain of operators.”
leading enterprises accelerate
On February 17, according to Xinhua news agency, 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, Dawan District, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, and planned 10 national data center clusters such as Zhangjiakou cluster. 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. With the release of the good news of “counting East and counting West”, the IDC concept sector rose sharply on February 18.
According to the national development and Reform Commission, as of February 2022, the scale of China’s data center has reached 5 million standard racks and the computing power has reached 130eflops. It is expected that it will still grow rapidly at a rate of more than 20% every year. What does not match the increasing demand for computing power is that China’s data computing power is not evenly distributed in the East and West. In the future, the western region needs to undertake more computing power demand in the east to realize the national integrated layout and optimal allocation of resources.
The construction schedule and schedule of the eight hub nodes, as well as the final calculation scale, Li Jie told the financial Associated Press: “the reply of the national development and Reform Commission and other departments to the eight hub nodes to start the construction of the national integrated computing network national hub node mentioned the concept of the cluster starting area, and made clear the listing rate, pue and other objectives of the starting area. It is expected that a certain scale and layout will be initially formed by the end of the 14th five year plan.”
At present, a number of industry leading enterprises have accelerated. China Telecom Corporation Limited(601728) told the financial associated press that it will continue to increase the construction of data centers at national hub nodes. It is expected that the scale of data centers at the eight hub nodes of “counting from the east to the west” will reach 85% at the end of the 14th five year plan. At the same time, it will further optimize the proportion between the East and the west, so that the data center will be adjusted from 7:3 to 6:4 at the end of the 14th five year plan “The main positioning of hub nodes in Inner Mongolia and Guizhou is to make full use of the advantages of local rich renewable energy and low-cost energy consumption to provide businesses with low real-time requirements such as artificial intelligence model training, data storage and backup, offline analysis, etc. the main positioning for hub nodes in Beijing Tianjin Hebei, Yangtze River Delta, Guangdong, Hong Kong, Macao and Shaanxi, Sichuan and Chongqing is to serve the high-density population in hot spots High frequency video playback, e-commerce and other businesses with high real-time requirements to meet the needs of regional strategic development. “
China Mobile responded to the financial associated press that it will take computing as the center and network as the foundation, build a new information infrastructure with deep integration of network, cloud, digital, intelligence, security, edge, end and chain (abcdnets), and accelerate the realization of the goal of “ubiquitous computing power, symbiosis of computing network, intelligent arrangement and integrated service”. In terms of computing infrastructure, first, connect with the national deployment of “computing in the East and computing in the west”, deepen the top-level design, and improve the planning and construction schemes such as computing service resource pool and network interconnection of the whole network; Second, strengthen the interconnection and unified scheduling of computing resources throughout the network, and speed up the construction and deployment of edge cloud; Third, continue to promote the integration of three clouds, give priority to the sharing of mobile cloud and it cloud infrastructure and common capabilities, and study and formulate the architecture scheme and deployment strategy of IAAs layer integration. In terms of backbone transmission network transformation, relying on the “4 + 3 + X” data center layout, network nodes will be deployed as needed, direct links will be added, and the networking architecture will be adjusted to realize full interconnection networking between mobile cloud center nodes.
The Kwai Tung news reporter learned from the fast train that Wulanchabu’s massive data center is located in the “east to west” Inner Mongolia hub node, and plans to build about twenty thousand 10 kilowatt cabinets according to the plan. After completion, it is expected to support 300 thousand servers. It is reported that Wulanchabu big data center is Kwai Tai first self built super large scale Internet data center, will use a large number of domestic chips, both high performance and low power consumption, will maximize the application of natural cold source, wind energy, Cecep Solar Energy Co.Ltd(000591) , low energy consumption equipment. The overall scale of the data center is second only to Tencent and Alibaba in the industry.
According to the data, as of the closing on February 18, IDC (Internet Data Center) index rose 5.56%, ranking in the forefront of the wind concept sector index. Zhang Tian said: “On February 18, the strength of IDC precision air conditioner and optical module largely reflects investors’ expectations for the short-term of edwc. It is expected that a number of large-scale projects of data center will be launched, but the speed of the project may not be so fast. At present, edwc engineering office is in the initial stage, and the specific implementation rules are still being formulated. At this stage, there may be a shortage of stock The improvement and transformation of the shelf rate of the project will be a key point. “
Insiders told the financial associated press that China’s implementation of the “counting from the east to the west” project aims to support the construction of the western region and rationalize the layout of computing power. The development of data center industry mainly benefits from the growth of underlying data traffic. With the promotion of 5g, edge computing, blockchain and other technologies, data will usher in a big explosion, and the demand for data center will increase. At present, the utilization rate of data centers in first tier cities is almost saturated, and the shelf rate is relatively high. However, in many provinces in the western region, although some data centers have been built, their on shelf rate may be between 15% – 30%, which has not yet reached the profit and loss point of the whole data center. Using these data centers can avoid waste of resources.
The above person said: “At present, the layout of network nodes in the western region is not perfect. The implementation of the” counting from the east to the west “project must first establish network nodes. After the network nodes are completed, some western cities should first absorb the existing data centers and expand them at the same time. Under the guidance of policies, some enterprises will enter the western region, participate in the construction of relevant facilities and further improve the industrial layout 。”
the industrial chain contains rich investment opportunities
The data center industry chain is huge, and the investment leverage effect is obvious. According to Dell Oro’s prediction, the capital expenditure of global data center will reach 350 billion US dollars in 2026, and China’s investment in global data center will account for about 20%, reaching 400 billion yuan. The financial Associated Press reporter learned from an authoritative person that the data center of the “counting from the east to the west” project 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. It is expected to drive the investment of 400 billion yuan per year after the launch.
According to industry estimates, the leverage effect of relevant investment on relevant industries is 1:8.
It is understood that the data center industrial chain itself includes not only traditional civil engineering, but also it equipment manufacturing, information and communication, basic software, green energy supply, etc. it has a long industrial chain, wide coverage and great driving benefits. According to the construction experience of the project, the investment of the equipment and power integration of the project is generally 50% of that of the project, and the investment of the equipment and power integration of the project is 50% of that of the project. Through the new data center, it will also stimulate the investment in traditional infrastructure such as civil engineering, dynamic ring, distribution network and substation, and further help the investment drive steady growth.
Guosheng securities communication team said that 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. The project of “counting from the east to the west” is fully launched, and the development direction determined by the superposition of digital economy will be a great opportunity for the whole field of data communication.
Zhang Tian believes that in the short term, it is suggested to pay attention to the energy-saving transformation of IDC and the cloud network industry chain of operators. He said: “The policy requires that the pue of the national hub node computing power cluster reach below 1.25, and if the pue exceeds 1.5, it needs to be transformed and upgraded. With the implementation of the East West computing, the implementation of local governments may be strengthened. For example, Shanghai has carried out IDC modeling work for more than 100 racks. We expect that 20% of the existing racks may face transformation. According to the data of IDC circle, the average pue in China in 2021 is 1.49, and that in South and central China is 1.49 The average is close to 1.6, and the transformation demand is huge. ” It is recommended to pay attention to China’s mainstream suppliers of indirect evaporative cooling, high-efficiency ups and modular preset data centers, such as Shenzhen Envicool Technology Co.Ltd(002837) , Nanjing Canatal Data-Centre Environmental Tech Co.Ltd(603912) , Yimikang Tech.Group.Co.Ltd(300249) , Kehua Data Co.Ltd(002335) , Shenzhen Kstar Science & Technology Co.Ltd(002518) , Zte Corporation(000063) .
Operators are the backbone of digital computing in the East and digital computing in the west, and pay attention to the opportunities of cloud industry chain brought by capital expenditure. At present, most computer rooms in the West are invested and built by operators, and operators have backbone networks and cloud dedicated lines covering the whole country, which will serve as the backbone of East digital computing and West computing. “With the recovery of C-end ARPU value and the rise of b-end industrial Internet business, operators’ valuation is attractive. In the next two years, operators’ capital expenditure may focus on cloud network, and will continue to increase the procurement of servers, switches and optical transmission equipment to further enhance their own computing power. At present, the three major operators in the server market account for nearly 20%, so it is suggested to focus on Inspur Electronic Information Industry Co.Ltd(000977) , Xinhua III, Zte Corporation(000063) and Huawei x86 spin off the formation of hyperfusion. ” Zhang Tian said.
In addition, Zhang Tian further analyzed and said: “It is expected that the procurement proportion of national production servers will further increase, and Kunpeng and haiguang series will directly benefit. It is suggested to pay attention to the information and innovation industry chain. In terms of communication, DCI interconnection in the optical module market has sprung up in recent years. It is expected that the global DCI market will exceed US $7 billion in 2023, of which the value of relevant optical modules accounts for a very high proportion. The increase in the proportion of lightweight and white box DCI is a global trend, and ipoverw DM for point-to-point interconnection of data center will greatly save equipment investment. It is recommended to pay attention to DCI related equipment module manufacturers Zte Corporation(000063) , Unisplendour Corporation Limited(000938) , Accelink Technologies Co.Ltd(002281) , dekeli (application for scientific innovation board), Eoptolink Technology Inc.Ltd(300502) , Zhongji Innolight Co.Ltd(300308) . “
Zhang Tian believes that from the medium-term perspective, the six cluster projects in the western region will be gradually implemented. The civil works will be carried out first. The pre construction cycle of IDC will invest in equipment procurement, including power supply, UPS, air conditioning, dynamic ring monitoring, cabinet, wiring, etc. It is noteworthy that the microgrid data center in the western region may be rapidly promoted. According to Siemens electric, the microgrid power generation consumed by the global data center may reach 30% in the future. It is mainly composed of distributed power generation, energy storage, energy conversion, monitoring and protection and other power electronic equipment to realize the local consumption of clean energy such as photovoltaic, wind power, hydropower and so on. The post construction cycle of IDC is to gradually deploy switches, optical modules and servers according to the needs of customers. The investment in Eastern digital computing and Western computing will continue to drive the demand for cloud IT infrastructure. Looking at the cloud IT industry chain, we believe that the server market is large, but the profit of the upstream chip pattern is better, and the optical module is expected to form a long-term growth logic in the dual boom of North America and China.
Analysts of Huaan Securities Co.Ltd(600909) computer group believe that it is recommended to pay attention to the back-end links of data element analysis, circulation and application under the background of digital economy for a long time. The analyst said: “the launch of” counting from the east to the west “is one of the implementation policies of the 14th five year plan for digital economy. Building a strategic technology industry around data value is an important main line of future development. We suggest paying attention to four aspects. First, cloud computing and AI are the main technologies around the landing of data applications. Suggestions: Yonyou Network Technology Co.Ltd(600588) , Beijing Kingsoft Office Software Inc(688111) . Second, digital finance focusing on the construction of digital RMB. It is suggested to pay attention to: Grg Banking Equipment Co.Ltd(002152) , Yusys Technologies Co.Ltd(300674) . Third, the new scene of power informatization brought by “counting from the east to the west”. It is suggested to pay attention to: Longshine Technology Group Co.Ltd(300682) , southern network technology. Fourth, the further aggregation of data resources puts forward higher requirements for network security. Suggestions: Sangfor Technologies Inc(300454) , Qi An Xin Technology Group Inc(688561) .
Citic Securities Company Limited(600030) said that under the policy tone of “steady growth”, infrastructure investment is expected to underpin the economy, and infrastructure REITs is expected to become a potential source of incremental infrastructure funds. The infrastructure industry chain may usher in extreme changes in the basic area. It is recommended to select infrastructure industry chain companies such as cement, construction, new power system, digital infrastructure and power station operation that benefit from the expected warming of infrastructure development.
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