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China: Power-hungry AI data centers fuel diesel generator production in China

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[Voiceover] In China, demand for diesel generator sets is heating up; a result of the country's rapid expansion of AI data centers, which require hefty backup systems. In east China's Nanchang City, a factory is working at full capacity to produce diesel generator sets, with eight units rolling off the production line every day. According to its chief engineer, 30 percent of these generator sets are destined for use at data centers and are typically collected by the customer on the same day they're finished. [Soundbite] Zhang Huadong, Chief engineer, diesel generator manufacturer: "We have cut down the production cycle from five days to three days. As soon as generators roll off the production lines, the customer's truck is already waiting outside." [Voiceover] With demand outstripping supply, prices for diesel generator sets are on the rise. The domestically produced 1,800-kilowatt unit, for example, is currently selling for between 320,000 and 350,000 U.S. dollars, a 10 to 15 percent increase from last year. [Soundbite] Wu Zhentong, Vice general manager, diesel generator manufacturer: "Since the beginning of the year, our orders have been robust. For the 1,800-kilowatt diesel generator set, our sales price has risen by over ten percent year on year." [Voiceover] According to estimates, the market for diesel generator sets used in Chinese data centers is expected to reach nearly 1.4 billion U.S. dollars this year, representing a year-on-year growth of over 100 percent. [Restrictions: No access Chinese mainland]

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