China’s exports of diesel generator sets are on the rise as the global boom in artificial intelligence (AI) drives investment in data centres, which in turn is fuelling demand for reliable backup power systems – an area where diesel units remain critical.
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Analysts said diesel generator sets sell for higher prices overseas, opening up vast opportunities for overseas market growth.
In the first seven months of this year, China exported 502,463 diesel generator sets, up more than 20 per cent year on year. The value of the shipments rose more than 28 per cent to US$2.52 billion, according to data released on Wednesday by the General Administration of Customs in Beijing.
In July alone, China exported 74,962 diesel generator sets, registering an 8.2 per cent year-on-year increase, while the value climbed 22.9 per cent to US$382.55 million, customs data showed.
The rise in diesel generator set exports comes as growing demand for AI services and related computing capacity drives investment in data centres, where diesel units play a critical role as backup power to keep them running during grid outages.
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Diesel generator sets made in China sell for around 3 million yuan (US$417,807) domestically and about 4 million yuan abroad, according to a note released by analysts at GF Securities this week.
“In the future, the valuation system for diesel generator sets will shift from domestic computing infrastructure benchmarks to international pricing, opening up vast opportunities in overseas markets and expanding long-term market value,” they said.