China's strong power transformer production capacity alleviates global market supply shortages
According to Japanese media on September 13: China's transformer export value reached 39.792 billion yuan (approximately 92 billion yen) from January to June 2026, a year-on-year increase of 26.78%, continuing its rapid upward trend. In 2025, total exports amounted to 64.6 billion yuan (about 1.5 trillion yen), up approximately 36% year-on-year, setting a record high.
This reflects the growing global demand for power infrastructure. In addition to constructing AI data centers, aging transmission grids in Europe and the United States are being upgraded, and increasing renewable energy integration into power networks, among other factors, have led to a surge in demand for transformers.
The International Energy Agency (IEA) forecasts that global data center electricity consumption will double from around 415 terawatt-hours (TWh) in 2024 to about 945 TWh by 2030.
Meanwhile, overseas manufacturers' supply capacity has failed to keep pace with rising demand, providing a favorable opportunity for Chinese enterprises.
According to data from UK-based research firm Wood Mackenzie, the average delivery lead time for power transformers in the United States increased from approximately 50 weeks in 2021 to about 120 weeks in 2024. As of 2025, supply shortages persist, with transformer shortage rates reaching as high as around 30% at times.
With a surge in data center construction, securing large transformers has become a major challenge in the U.S. According to Wood Mackenzie, approximately 80% of power transformers supplied in the U.S. are imported. Reports indicate that some data center operators have purchased large transformers made in China to shorten lengthy delivery times.
However, Chinese products currently account for only about 4% of the U.S. transformer market, indicating limited scale. At the same time, China’s export value of transformers to the U.S. surged by 182% year-on-year during January–February 2026.
In August of the same year, the U.S. government strengthened regulations on large power equipment originating from China and other countries, which may affect future procurement trends.
China currently accounts for over 60% of global transformer production. Leveraging its robust industrial chain advantages and shorter delivery times, China is accelerating efforts to address supply shortages in overseas markets.
Many transformer factories in China are now operating at full capacity, with some companies’ orders booked as far as late 2027.
Original article: toutiao.com/article/1876198492253188/
Disclaimer: The views expressed in this article are solely those of the author.