Electricity demand is rising quickly as artificial-intelligence data centres proliferate. Market attention has turned to demand for grid equipment as well as for generation.

Data centres require a steady load around the clock, so securing output alone is insufficient; a network able to carry power reliably must be in place alongside.

The actual bottleneck appears in transformers, high-voltage cable and switchgear. Capacity for such equipment takes years to expand, so supply cannot be raised quickly.

Heavy electrical manufacturers in South Korea, Japan and Europe are reported to hold order backlogs stretching several years. Analysts say longer lead times have shifted pricing power toward suppliers.

Attention has concentrated on nuclear-related shares, but the point at which profitability actually improves differs greatly by business structure, given long construction and permitting timelines.

Rising demand also feeds into debate over tariffs: how to apportion industrial and general rates, and how to share the burden on regional networks.

Investment judgements should take account of individual firms' backlogs, delivery times and raw-material procurement terms.