[Click eStock] "Doosan Enerbility to Benefit from Rising Power Demand Driven by AI Data Centers"

On May 21, KB Securities maintained its "Buy" investment rating on Doosan Enerbility, stating that the company is expected to benefit from the increasing power demand driven by artificial intelligence (AI) data centers. The firm also raised its target price by 12.8%, from 39,000 won to 44,000 won.

On the same day, Jung Hyejeong, a researcher at KB Securities, said, "We have raised our long-term earnings estimates to reflect the acceleration of small modular reactor (SMR) contract signings and the potential expansion of the large-scale nuclear power plant market."

NuScale Power, Doosan Enerbility's key SMR partner, announced in its first-quarter earnings report this year that it expects to receive standard design approval from the U.S. Nuclear Regulatory Commission (NRC) for its 77MW model in July. The company also projected that, fueled by strong demand from hyperscale data center operators, it will secure firm customer orders for one to two projects by the end of the year.

Jung noted, "Doosan Enerbility has already secured material orders for six modules from NuScale. This year, the company plans to add orders for 12 pieces of equipment and six sets of materials. Once contracts are finalized, parts will be delivered quickly."

She further explained, "If additional orders are placed, Doosan Enerbility plans to expand its production lines and increase its annual module production capacity to up to 20 units within one to two years."

The rising power demand resulting from the increase and electrification of AI data centers is also leading to greater demand not only for SMRs but also for large-scale nuclear power plants and LNG combined cycle power generation. Even Germany, which had maintained the strongest anti-nuclear stance in Europe, has now reversed its opposition to nuclear power, following Belgium and Denmark.

Jung stated, "In order to respond stably to the rapidly increasing power demand, led by the United States, more countries are adopting strategies that rely on nuclear power and SMRs in the long term, and LNG combined cycle power generation in the medium to short term."

In addition to supplying core nuclear power equipment to Westinghouse, Doosan Enerbility is preparing to export large-scale nuclear power plants to countries such as Canada, Finland, and Sweden. Jung added, "Doosan is currently negotiating with two U.S. data center companies to supply gas turbines in 2027 and 2028, and results could be seen as early as the end of this year."