#China #Shanghai #Energy Solutions #AI Data Centers #Daqo New Energy

Daqo New Energy Initiates Groundbreaking Investment in AI Data Centers

On June 3, 2026, Daqo New Energy Corp. (NYSE: DQ), a prominent player in the high-purity polysilicon market for solar energy, announced a significant investment agreement to establish a new manufacturing facility. This initiative, aimed at enhancing energy solutions specifically for artificial intelligence data centers (AIDCs), comes in response to the growing demands for advanced energy technologies.

The agreement, signed with the Management Committee of the Kunshan Economic and Technological Development Zone, sets the stage for Daqo’s expansion into a critical sector where energy efficiency is paramount. Daqo's newly formed subsidiary, Daqo Energy Technology (Shanghai) Co., Ltd., will oversee this venture, which encompasses the research, development, manufacturing, and marketing of innovative equipment and systems, including energy storage solutions, solid-state transformers, circuit breakers, and batteries.

Phased Investment Strategy

The project will unfold in two phases, with Phase 1 requiring an investment of approximately RMB 2.1 billion (about $330 million). The total budget for the entire project is anticipated to reach around RMB 6 billion (about $910 million). Phase 2 will proceed at a later date, contingent upon meeting specific industrial guidelines and investment prerequisites. Presently, the overall implications of this investment on Daqo's future performance remain uncertain, as the project is still in its preparatory stages.

The move is seen as a strategic pivot for Daqo New Energy, especially as the market for AIDCs continues to swell at an unprecedented rate. Mr. Xiang Xu, the firm's CEO, expressed enthusiasm for this expansion, highlighting the company's robust background in advanced transformer and circuit breaker technologies, which position them well to tap into this evolving market.

Addressing Market Demands

The increasing requirement for sophisticated energy solutions in AIDCs cannot be overstated; as AI technologies propel various sectors forward, the energy demands grow correspondingly. Daqo New Energy aims to leverage its in-depth expertise and technical capabilities to cater to these emerging needs, enabling more efficient energy management for future data centers.

“By diversifying our product range and creating new growth avenues, this investment aligns perfectly with our strategy to optimize our offerings and capitalize on the global energy transition,” commented Mr. Xu.

About Daqo New Energy Corp.

Founded in 2007, Daqo New Energy has grown to be a leader in producing high-purity polysilicon for the solar photovoltaic industry. The company boasts a significant production capacity of 305,000 metric tons, establishing itself as one of the most cost-effective producers globally. Daqo supplies its polysilicon to various photovoltaic manufacturers, who use it to create vital components for solar energy solutions, including ingots, wafers, cells, and modules.

In light of the rapid shifts in energy demands and the tide towards more sustainable practices, Daqo’s latest commitment illustrates a proactive approach to not only maintain competitiveness but also to play a pivotal role in the future of energy solutions. For additional information, visit Daqo New Energy Corp..

This agreement is a pivotal element of Daqo New Energy's mission to foster sustainable growth while simultaneously meeting the burgeoning needs of the AI infrastructure sector, setting a benchmark for innovation in energy technology.