UBS: The Chinese internet data center industry is at a turning point in demand, with Wanguo Data and Century Internet as top choices.

UBS released a research report stating that, based on strong demand signals and potential easing of high-end computing supplies, the Chinese internet data center industry is expected to significantly accelerate from the second half of 2026. China has a highly integrated national power grid and telecommunications network, which the bank believes will support AI-driven demand and views Wanwang Data and Century Internet as industry leaders. The bank adjusted industry forecasts based on better supply and demand visibility, raising the forecast for net additions of utilized IT power from 2026 to 2028 by 4%, 25%, and 22%, to 4.0 gigawatts, 5.8 gigawatts, and 6.7 gigawatts respectively. It is expected that total utilized IT power will reach 31 gigawatts by 2028, implying a compound annual growth rate of over 25%. UBS data shows that IDC utilization rates have maintained resilience, with backlog orders from major cloud service providers extending to the second half of 2027 due to strong token demand and increased production of domestic chips.