CATL may play a larger role in powering the next generation of data centers after signing a framework agreement to increase its stake in Hangzhou Zhongheng Technology Investment, a major shareholder in Zhongheng Electric, an HVDC and power solutions provider.
Local media reports indicate China’s largest battery manufacturer has invested 4.1 billion RMB ($600 million) in Zhongheng Technology Investment, giving it a 49% stake in the business. Zhongheng Technology Investment is a major investor in Zhongheng Electric – an HVDC and power solutions business that has served companies such as Alibaba, Tencent, and other businesses with large data center needs.
The deal comes as companies such as chip manufacturer Nvidia call for a switch from AC- to DC-based electricity system architectures to keep pace with the increasing power demands of computer racks – a shift driven by…
