Analysis Report: Surging Power Demand by 2040 and the Power Infrastructure Super Cycle

Market Summary and Analysis 

Through the 12th Basic Plan for Electricity Supply and Demand, the government officially forecast that peak power demand in 2040 will increase about 1.4 times from current levels. 

 

Despite slowing macroeconomic growth, investment in AI (artificial intelligence) and the advanced semiconductor industry is powerfully driving a structural surge in power demand.

 

Three Key Drivers of the Surge in Power Demand 

Advanced semiconductor investment: the creation of large-scale semiconductor clusters to foster national advanced strategic industries requires enormous amounts of electric power. 

 

Spread of AI data centers: with the explosive adoption of generative AI, new hyperscale data centers with extremely high power consumption are being built one after another. 

 

Accelerating electrification: in line with national greenhouse gas reduction targets, the wider adoption of electric vehicles and the electrification of industrial processes are progressing rapidly.

 

Implications for Investors 

With target demand raised significantly, large-scale government expansion of power generation facilities and investment plans for the national transmission and distribution grid will inevitably follow. 

 

This heralds a powerful, long-term super cycle across the entire value chain of power equipment, transformers, cables and power generation infrastructure. 

 

Investors should pay attention to the structural growth of the power infrastructure sector, the true hidden beneficiary of the AI chip rally, and consider actively adding it to their portfolios.