According to Bloomberg, due to the rapid construction of data centers and acceleration of electrification, the global supply of transformers has tightened and prices have risen. Last year, China set a historic high for power transformer exports.
According to data released by China’s General Administration of Customs on the 18th, last year China’s transformer export value reached a record 64.6 billion yuan (37.623 billion ringgit), an increase of nearly 36% compared to the previous year.
The function of a transformer is to convert high-voltage electricity into low-voltage electricity for household or factory use.
Transformers are critical to power grid infrastructure. As export volumes soar, the world is experiencing a shortage of transformer equipment.
Energy consultancy Wood Mackenzie estimates that as the world’s largest transformer buyer, the United States faces about a 30% supply gap, a situation that may persist into the 2030s.
Chinese manufacturers are benefiting from the growth in overseas orders, which are used for upgrading aging power grids, as well as domestic investment in super grids mainly powered by renewable energy.