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Investing.com - Chinese transformer exports are rising significantly, with particular momentum in shipments to data centers in the United States, according to a recent Morgan Stanley report.
The analysis highlights two main drivers: increased high-voltage and medium-voltage equipment sales to Europe, alongside growing mid to low-voltage exports to the under-supplied U.S. market.
The U.S. exports are primarily directed toward data centers where supply bottlenecks are most severe and national security concerns are less prominent than in grid networks.
Morgan Stanley noted surprising momentum from Chinese companies entering the U.S. market. JST reportedly secured approximately $100 million in orders for U.S. AI data centers this year and expects to double that figure in 2026.
The report indicates medium-voltage switchgear from mainstream suppliers like Schneider, ABB, and Siemens currently has lead times approaching one year, while Asian companies can deliver in just 4-6 months.
Although new entrants’ market share remains small compared to established players like Schneider, which expects approximately €9 billion in data center revenue for 2025, Asian manufacturers have substantial scale in their home markets.
Morgan Stanley suggests Chinese companies will likely continue increasing their U.S. supply presence, creating pressure for established players to reduce lead times to maintain competitive advantage in the near term, while focusing on technology leadership for next-generation AI data centers in the longer term, particularly in areas like the solid-state-transformers market.
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