Weichai Power Hits Record High on Data Center Power Demand Surge

Stock Performance and Company Announcement

Weichai Power (000338.SZ/2338.HK), a leading diesel engine manufacturer, hit its daily limit on May 6, with stock price reaching a historical high and combined A+H market capitalization exceeding 600 billion yuan, according to the company announcement. On the same day, the company announced delivery of multiple 2200kW Weichai 12M55 data center backup power units to a telecommunications operator’s data center project in Shaoguan, Guangdong Province.

Q1 2025 Performance Metrics

During an investor conference call, Weichai Power disclosed strong growth in its power energy business. In the first quarter, the company sold 30,000 power energy product units, representing a year-over-year increase of 21%. Large-bore engine sales exceeded 3,000 units, also up 21% year-over-year. Data center engine sales surpassed 500 units, marking a significant year-over-year increase of over 240%. The company noted that order demand remains robust, with power energy business expected to contribute increasingly to overall performance.

Market Context: Why Data Centers Need Diesel Generators

Diesel generators play a critical backup role in data center infrastructure. According to the source material, high-power diesel generators account for approximately 40% of data center power supply needs and represent about 20% of total data center infrastructure costs. The distinction between diesel generators and uninterruptible power supplies (UPS) is significant: UPS systems can provide power for only minutes to tens of minutes after grid failure, while diesel generators, unrestricted by battery capacity, can supply extended backup power.

Global data center power demand is growing at high speed, driving expansion in the diesel generator market beyond traditional applications.

Competitive Landscape and Supply Dynamics

The high-power diesel generator market for data centers has long been dominated by international brands including Cummins, Caterpillar, and Rolls-Royce MTU. According to multiple securities research reports cited in the source, overseas manufacturers maintain high order growth but face slower expansion progress due to constraints inherent in complex engine industry supply chains. The market currently shows signs of supply shortage, and as domestic leading manufacturers expand capacity, the share of domestic suppliers is expected to increase.

Market Size Forecasts

According to reporting from China Industrial News, Cummins has projected sustained growth in the global data center generator market. The market is expected to grow from $6 billion in 2023 to $9 billion in 2026, and further to $12 billion by 2030. Caterpillar’s power segment reported sales of $8.4 billion in Q3 2025, representing a year-over-year increase of 17%, with data center power systems identified as a core growth engine.

Stock Performance Trends

Weichai Power’s A-share stock price increased 36.7% over the past month and surpassed 130% year-over-year growth. The Hong Kong-listed shares rose 53% over the same one-month period.

Full-Year 2025 Results

In its 2025 financial report, Weichai Power reported data center backup power sales grew 259% year-over-year. The M-series large-bore engine achieved annual sales exceeding 10,000 units for the first time, representing 32% year-over-year growth with revenue up 65% year-over-year. The company’s U.S. subsidiary PSI capitalized on North American power energy market opportunities, achieving significant revenue and profit growth, with power generation products contributing 81% of revenue. However, the company noted that core profitability continues to derive from traditional engine business.