## The Emergence of Power Crisis in the AI Era: Why BBU Has Become the "New Oil" for Data Centers

Recently, a fascinating phenomenon has appeared in the Taiwan stock market—the main index fluctuates and consolidates, but **BBU concept stocks** suddenly surge, with **Baiyu(3323)**, **Xingnenggao(6558)**, and **Xisheng(3625)** hitting the daily limit together, becoming the most eye-catching focus on the trading floor. What is driving this? Simply put, it’s the collision between **AI server power consumption monsters** and **power supply bottlenecks**.

## What is BBU? Why has it suddenly become a necessity?

**BBU (Battery Backup Unit)** is essentially an emergency power supply device with an integrated battery. When the main power supply of a data center or server room suddenly fails, the BBU can immediately take over, ensuring servers have enough time to save data or shut down smoothly, serving as the last line of defense to maintain continuous operation.

In the past, BBUs were mainly used for communication equipment backup and were not considered a critical role. But now, things are different—

**The first variable is the explosion of AI**. The rapid deployment of large language models like ChatGPT and Gemini has led to a boom in data center expansion worldwide. These AI servers consume enormous amounts of power, and downtime can result in heavy losses (imagine halting computations worth millions of dollars). Therefore, what was once an “optional accessory” has upgraded to an “indispensable infrastructure.”

**The second variable is the tight power grid**. Global electricity demand has surged, especially in the US, Japan, and other regions facing stability challenges, increasing the risk of power outages. This elevates the strategic importance of BBUs that combine backup and energy storage functions, making them a key investment focus for CSP giants (Google, Meta, Amazon, etc.) and data center operators.

NVIDIA’s upcoming AI Power Summit is a signal that the industry is actively working to solve this “AI power bottleneck” issue.

## Taiwan’s supply chain plays a game of grabbing orders

Seeing the explosive market demand, Taiwanese related companies are moving quickly—

**The alliance between Baiyu and System Electric is the most eye-catching**. System Electric not only acquired over 10% of Baiyu’s shares but also jointly develops BBU and drone products, targeting the “BBU manufacturing in the US” big business opportunity. During the company’s investor conference, System Electric revealed that BBU product verification is nearing completion, with the first CSP major client expected to start shipments in **the first quarter of next year**. Coupled with the mass production advantage of the new factory in Texas, Baiyu, as a partner, is expected to benefit simultaneously.

**Xingnenggao is also not to be outdone**. The company emphasizes its active layout in emerging fields such as BBU, energy storage, drones, and medical devices. Its BBU energy storage products for network communication equipment have completed certification, and are expected to inject growth momentum into revenue and profit next year.

**Other players like Shunda, Xinshengli, and others are also planning capacity expansions**, preparing to seize the growth in demand. According to market expectations, the revenue contribution from related BBU businesses is expected to significantly increase next year.

## Capital senses opportunity, technical aspects turn stronger

From the flow of funds, as the market consolidates from its high point and investors remain cautious about high-valuation stocks, money is clearly shifting—toward groups with **clear industry trends** and **relatively low stock prices**. BBU concept stocks are prime examples.

Taking Baiyu as an example, today it surged with high volume, breaking through the seasonal line, with a golden cross on the daily KD indicator, indicating a short-term technical shift to strength and a bullish momentum. This is not only a technical signal but also reflects investors’ confidence in the long-term prospects of this theme.

Analysts point out that under the big trend of AI investment, “stable and sufficient power supply” has become an indispensable basic infrastructure. Fields such as BBU systems, power management, and high-performance computing infrastructure all have structural long-term growth potential. The related themes are expected to continue fermenting, with clear medium- and long-term prospects.

Investors should closely monitor each company’s **order fulfillment status** and **revenue contribution progress** as important tracking indicators.