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Opportunities and Challenges for Power Transformers in the Global AI Industry Development

The Vital Role of Power Transformers in the Field of Artificial Intelligence

The rapid development and widespread adoption of artificial intelligence (AI) present unprecedented challenges to global electricity demand. Tesla CEO Elon Musk pointed out in a previous speech that the rapid advancement of generative AI will lead to shortages in electricity and power transformers, becoming a bottleneck for technological development. He predicted that such electricity shortages could occur as early as 2025.

For instance, ChatGPT, which ignited a global wave in the AI industry, consumes over 500,000 kilowatt-hours of electricity daily, equivalent to more than 17,000 times the average power consumption of a U.S. household. Moreover, if generative AI is further adopted, electricity consumption could increase even more. Musk has forecasted that within the next two years, the industry will transition from a "shortage of silicon" to a "shortage of electricity," which could hinder the development of artificial intelligence.

Although various countries are actively developing renewable energy sources such as wind and solar, the grid's current state makes integrating these clean energy sources difficult. Even if sufficient renewable energy is generated, inadequate transmission lines may prevent effective delivery to demand locations.

As an indispensable component in the power transmission route, power transformers not only enhance power quality, and reduce power fluctuations and disturbances by adjusting voltage parameters, thereby ensuring the stable operation of AI equipment and systems, but also improve operational efficiency and performance. Additionally, the intelligent management and optimization control of power transformers can optimize energy efficiency in power systems, reduce energy consumption and emissions, meet the environmental requirements of energy conservation and emission reduction, and provide sustainable energy support for AI development.

Opportunities and Challenges for Power Transformer Companies in the Global AI Industry Development

With the rapid development of the AI industry, the transformation of the global energy structure driven by it, and the continuous growth of electricity demand, power transformer companies, as one of the core equipment in power systems, are currently facing supply shortages in overseas markets. From an industry perspective, the tight supply of domestic capacity in the United States and Europe, combined with the demand for power infrastructure construction in Belt and Road countries, presents a growth opportunity for Chinese transformer companies in overseas markets. According to the General Administration of Customs of China, the cumulative export quantity of Chinese transformers reached 2.74 billion units in 2023, with export revenue reaching $5.93 billion, a year-on-year growth rate of 18.4%. Furthermore, there is expected to be continued growth this year.


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