Daqo New Energy to Invest RMB 2.1 Billion in Phase 1 AI Data Center Energy Base
DQ•Daqo New Energy’s subsidiary agreed to build a Kunshan manufacturing base for energy storage systems, solid-state transformers, circuit breakers and batteries for AI data centers. Phase 1 investment is about RMB 2.1 billion, with total project cost preliminarily set at RMB 6 billion.
1. Investment Agreement Details
Daqo Shanghai has signed an agreement with the Kunshan Economic and Technological Development Zone to establish a manufacturing base dedicated to next-generation energy solutions for AI data centers. The facility will focus on research, development, manufacturing and sales of energy storage systems, solid-state transformers, circuit breakers and solid-state batteries.
2. Investment Scale and Phases
The project is planned in two phases, with Phase 1 requiring an investment of approximately RMB 2.1 billion. Phase 2 will proceed once industrial policy and investment requirements are met, bringing the total projected investment to about RMB 6 billion, though financial impact remains undetermined.
3. Strategic Diversification
This expansion moves Daqo beyond high-purity polysilicon into the AI data center energy market, leveraging its technical capabilities in transformer and circuit breaker technologies. The initiative aims to diversify the company’s product portfolio, create new growth engines and capitalize on rising demand for integrated energy solutions.
