(Yicai) March 12 -- China's exports of transformers, a key power equipment component, soared to a record high last year thanks to the explosive growth of artificial intelligence computing power.

Transformer exports surged 36 percent to CNY64.6 billion (USD8.9 billion) in the 12 months ended Dec. 31 from the previous year, according to data from the General Administration of Customs. The average price of each shipped unit jumped about a third to CNY205,000 (USD28,200).

China makes about 60 percent of all transformers in the world and boasts the most complete supply chain, Cai Yiqing, secretary-general of China Electricity Council's electric power equipment branch, told Yicai. Major importers include countries in Southeast Asia, Europe, the Middle East, and Africa, Cai added.

"Driven by the rapid development of renewable energy projects and AI data centers, global demand for transformers, switchgears, and digital grid equipment is significantly growing," Zhao Yongzhan, executive vice president of Switzerland's Hitachi Energy, the world's largest transformer equipment maker, said to Yicai.

The production cycle of core power equipment, such as transformers, is long, while expanding capacity requires substantial capital and talent, noted Zhao, who is also China president at Hitachi. Coupled with the accelerated growth of data centers, renewable energy, and grid upgrade projects, such equipment will remain in short supply, Zhao added.

However, Chinese suppliers are expected to maintain strong delivery capacity for key equipment supported by China's complete and mature supply chain, leading manufacturing capabilities, and a continuously improving technological innovation system, Zhao pointed out.

China is an important strategic hub of the global transformer supply chain, Zhao noted, adding that relying on the country's supply chain, strong manufacturing capabilities, and research and development strength, Hitachi's local factories can work with partners to promote technological innovation and drive sustained strong export growth, especially to Southeast Asia and the Middle East.

Large-scale AI applications are a key driver of surging electricity demand worldwide, according to the Electricity 2026 report released by the International Energy Agency last month. Global data center power demand is projected to more than double to around 945 terawatt-hours by 2030.

Against the backdrop of rising infrastructure construction driven by power supply shortages, the world's supply gap for transformers likely stands at 30 percent, while that for distribution transformers is at 10 percent, noted consultancy Wood Mackenzie.

Editors: Tang Shihua, Martin Kadiev