Against a backdrop of rising demand for battery storage, renewables and AI data centers, supply risks and government policy tailwinds, this report selects 20 stocks and reviews their latest developments and earnings. As large-scale demand creation and expanded capital investment move forward, the effectiveness of order backlogs and production capacity is being put to the test.
OCCTO, the Organization for Cross-regional Coordination of Transmission Operators, Japan, has announced that new and expanded data centers and semiconductor plants are expected to increase peak demand in fiscal 2035 by approximately 7.62 million kW. While demand is rising, the supply side faces uncertainty from the impact of tensions in the Middle East and the end of electricity tariff support, and investment centered on battery storage facilities is accelerating rapidly.
Grid connection studies for battery storage facilities have reached approximately 172 million kW, and contract applications approximately 30 million kW, while the amount actually connected to the grid remains only about 640,000 kW. Demand for grid-scale batteries, which help absorb fluctuations in supply and demand, is substantial, but practical hurdles are also emerging, including limits on the number of grid connections and lower price caps in the balancing market.
Policy support from the government and the Ministry of Economy, Trade and Industry continues. The Seventh Strategic Energy Plan sets a target of roughly 40% to 50% for the renewable energy share, and certification of GX strategic regions designed to attract data centers is also progressing. As the practical implementation of coordination between power and data infrastructure advances, companies are increasingly being evaluated from four perspectives centered on battery storage, renewables and AI data centers. Against this backdrop, this report selects 20 stocks, from frontrunners to dark horses, and explains the rationale based on their latest earnings and IR disclosures.