GreenergyDaily

Jan. 19, 2026

China reaped record gains from rising exports of power transformers last year, as the rapid buildout of data centers and accelerating electrification squeeze supplies and raise prices worldwide.

The country shipped a record 64.6 billion yuan ($9.3 billion) worth of transformers last year, nearly 36% higher than a year earlier, according to customs data released on Sunday.

The jump in export value comes as the world experiences a shortage of the equipment critical to grid infrastructure. The US, which is the world's biggest buyer of transformers, faces a supply gap of about 30% that may persist into the 2030s, energy consulting firm Wood Mackenzie Ltd. estimates.

Chinese manufacturers are benefiting from rising overseas orders to modernize aging grids as well as domestic investment in renewables-heavy supergrids.

Global grid investment exceeded $480 billion for the first time in 2025, according to BloombergNEF, with strong momentum likely to sustain for the next couple of years.

The boom in AI computing and electrification, however, has driven up prices and doubled lead times for power transformers since 2021, BloombergNEF analyst Eva Gonzalez Isla said in a note.

The average price of a single transformer shipped out of China last year rose to 205,000 yuan, up about a third from a year earlier, the customs data showed. In the US, where manufacturing capacity remains strained, prices are about 79% above pre-2021 levels, with similar pressures seen across Europe and Australia, according to BloombergNEF.