Events
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 eight regions, including Beijing, Tianjin and Hebei, the Yangtze River Delta, Guangdong, Hong Kong, Macao, Dawan District, Chengdu and Chongqing, Inner Mongolia, Guizhou, Gansu and Ningxia, Zhangjiakou cluster and other 10 national data center clusters are planned. At this point, the “integration of East and west” project has been officially launched.
Key investment points
As a key link of the national digital economy strategy, computing from the east to the west is expected to optimize the national computing power allocation. The East digital West computing project is a key link of the national digital economy strategy. According to the “14th five year plan” for digital economy development issued by the State Council, the proportion of the added value of core industries in the digital economy in GDP will increase from 7.8% in 2020 to 10% by 2025. 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 expected to grow rapidly at a rate of more than 20% every year. At present, most of China’s data centers are located in economically developed areas in the East. With the deepening development of digital economy, the demand for computing power of Beijing Vastdata Technology Co.Ltd(603138) is growing, the resources of data centers in the East are becoming more and more scarce, and the supply of land, energy and other resources is relatively tight, while the resources in the West are abundant, especially renewable energy represented by wind energy and hydropower, By transporting part of the data to the western region for calculation, the resource allocation and industrial structure can be optimized. In addition, according to CDCC data, the shelf rate of some data centers in the western region is only 30% – 40%, which fails to meet the standard of 65%. East digital West computing will effectively promote the shelf rate of existing data centers in the western region. In addition, the policy of Eastern digital computing and Western computing is selective resource allocation. The western data center mainly deals with data with low demand for real-time network such as background processing, offline analysis, storage and backup, and the eastern hub mainly deals with data with strong real-time requirements such as industrial Internet, finance, disaster early warning and telemedicine.
In the context of carbon neutrality, it is recommended to pay attention to IDC manufacturers with excellent energy efficiency control and upstream refrigeration equipment providers that play a key role in reducing energy consumption in the data center. In the context of carbon neutralization, data centers have more stringent requirements on energy efficiency. Pue requirements in western regions such as Gui’an, Qingyang, helingel and Zhongwei are less than 1.2, while pue requirements in eastern regions such as Yangtze River Delta, Wuhu, Zhangjiakou, Tianfu, Chongqing and Shaoguan are less than 1.25. At present, only about 40% of data centers in China have pue of less than 1.4. At the same time, Beijing, Shanghai and other places have successively connected the power consumption of the data center to the monitoring, and adopted the way of increasing the electricity price for the data center with excessive energy consumption. The operating cost of the data center with high pue will be greatly increased. At the same time, it will face the risk of transformation and shutdown. The industrial capacity is expected to be cleared one after another, and the market share is expected to be concentrated in the data center with better energy efficiency control. In addition, according to IDCC data, the energy consumption generated by the air conditioner in the machine room accounts for 40% of the total energy consumption of the data center. Reducing the energy consumption demand from the refrigeration end is the best solution. At present, the indirect evaporative cooling unit can achieve pue of 1.25, and the magnetic levitation phase change heat pipe can reduce pue to 1.09. In the future, advanced refrigeration technology is expected to become the mainstream of reducing energy consumption in the data center. It is suggested to pay attention to the upstream refrigeration equipment supplier of the data center.
Investment suggestion: digital economy has become a national strategy. As a key link in the national digital economy strategy, computing from the east to the west is expected to optimize the national computing power allocation. In the context of the national carbon neutral strategy, the data center has more stringent requirements on energy efficiency. It is recommended to pay attention to IDC manufacturers with excellent energy efficiency control and upstream refrigeration equipment providers that play a key role in reducing energy consumption in the data center.
Risk factors: the implementation of policies is less than expected; Cloud computing capital expenditure is less than expected; Downstream demand is lower than expected; Industry competition intensifies.
