(Yicai) Nov. 20 -- North America is facing mounting power shortages driven by explosive growth in demand for artificial intelligence computing, creating a significant opportunity for Chinese companies to expand overseas, according to a new research report by China International Capital Corporation.

CICC, a leading investment bank, said the acceleration of AI model training by major US cloud service providers is straining an aging American power grid, where coal and gas facilities are being retired faster than new capacity can be built. Constructing new gas-fired power plants typically takes more than three years, while nuclear projects require five to 10 years.

US net electricity imports surged 125 percent year on year to 20.94 terawatt-hours in the first nine months of this year, data from the US Energy Information Administration showed, and CICC forecasts the country could face an average annual power shortfall of about 15 gigawatts over the next five years.

Gas turbines are emerging as the most viable short-term solution due to their fast response and short construction cycles, CICC noted. Global leaders such as GE and Siemens are expanding output, while Chinese manufacturers involved in contract manufacturing and supplying key components such as blades, castings, and materials are expected to benefit.

CICC estimated that the supply-demand gap for transformers in North America could reach as high as 66 percent from 2024 to 2027, positioning China as a crucial supplier to help close the deficit. China exported USD6.5 billion worth of transformers in the first nine months of this year, up 39 percent from a year earlier. Energy storage systems are also set to gain from regulatory requirements tied to the “roller coaster” electricity consumption patterns of data centers.

Photovoltaic renewable energy is becoming an important supplementary power source due to its rapid deployment capabilities, and frontier technologies such as solid oxide fuel cells are also attracting attention. Rising demand for aluminum used in power cables may further support the non-ferrous metals sector.

Analysts said that in the new stage of China-US economic and trade relations, Chinese companies are accelerating their integration into global value chains by leveraging institutional advantages, economies of scale, and industrial cluster effects. North America’s power shortage could offer a key window for China’s equipment manufacturing industry to expand abroad.

Editor: Emmi Laine