Global Energy Storage — China Next Winners: Powering China's AI Revolution

China's AI ecosystem is emerging as a key beneficiary of the country's unique advantages in power, infrastructure and policy support. Leading Chinese AI models are increasingly delivering competitive intelligence at materially lower cost, supported by efficient architectures, lower infrastructure costs and some of the world's lowest power tariffs. As China seeks to narrow the compute gap with the US, we estimate data-center electricity demand could rise from 202TWh in 2025 to 1,476TWh by 2035, making hyperscalers one of the fastest growing sources of power demand. Unlike many markets, China combines abundant and low-cost electricity, rapid capacity expansion, competitive power supply chains, and policy initiatives that increasingly align compute growth with power infrastructure. In our view, this creates a multi-year investment opportunity across the AI power value chain, particularly in grid infrastructure and energy storage, with CATL and Sungrow among the most direct beneficiaries o