UBS has upgraded its forecast for China’s electricity demand in the late 2020s, projecting annual growth of around 8% from 2028 to 2030, significantly above the 4–5% market consensus. The bank attributes the stronger outlook to a surge in AI-related data-centre consumption, export-driven industrial activity, and ongoing electrification trends. UBS estimates AI data centres alone will add roughly 2.3 percentage points to annual demand growth, with exports contributing 1.4ppts and electrification 1.2ppts.Crucially, analysts say China’s AI-power build-out, at 5–6GW of capacity, remains far smaller than the 40–45GW being developed in the United States, arguing this indicates no evidence of a speculative bubble.The stronger demand outlook implies a sharp acceleration in power-sector investment during the 15th Five-Year Plan, with UBS forecasting a 12% compound annual growth rate, roughly twice the consensus expectation. They see particularly strong benefit for nuclear (14–15 new units per year), wind installations (130–140GW annually), and continued reliance on coal for baseload stability. Tight global supply of power-equipment components such as transformers and gas turbines is expected to advantage Chinese manufacturers.UBS also expects a rebound in China’s photovoltaic sector, supported by structural reforms and rapid growth in energy-storage demand, which they see expanding at around 40% annually. ---UBS’s sharply higher power-demand outlook strengthens the investment case for China’s nuclear, wind and equipment manufacturers, while supporting a recovery in solar and storage supply chains. This article was written by Eamonn Sheridan at investinglive.com.