Surging demand from high-growth sectors such as data centers and smart microgrids will accelerate Danfoss Group's expansion in China, as the country pushes ahead with its green transition and high-quality growth agenda, said the company's top executive.

Kim Fausing, president and CEO of the Danish industrial conglomerate, said the company aims to deploy more resources in China's data center sector, drawing on its global expertise and technologies to support scalable, energy-efficient infrastructure for artificial intelligence-led digital expansion.

"China has become a key player in global digital and energy transitions, as data centers play a growing role in the energy system, driven by rising electricity demand from AI and cloud computing," said Fausing during his trip to Beijing to attend the recent China Development Forum 2026.

As its sales in China more than doubled over the past decade to exceed 10 billion yuan ($1.45 billion), Danfoss, operating 12 manufacturing bases and four innovation facilities across the country, posted 13 percent year-on-year sales growth in 2025, driven by strong momentum in sectors such as data centers and marine industries, where demand for energy-efficient solutions is rising.

However, the rapid expansion of data centers is also raising concerns over energy use and resource constraints. Fausing said the power usage of data centers is expected to grow significantly by 2030 in many parts of the world, alongside rising water demand, which could put pressure on energy supply, water resources and electricity costs if not properly managed.

He said China is well-positioned to lead the transition, supported by strong power generation capacity and expanding renewable energy, with the "East Data, West Computing" initiative — a mega data project launched in 2022 to accelerate the development of an integrated national computing network — reflecting this advantage.

This approach is also in line with broader national priorities under the 15th Five-Year Plan (2026-30), which emphasizes green and low-carbon growth, industrial upgrading and the development of emerging industries.

"When properly integrated into local energy ecosystems, aligned with renewable generation, and enabled to support grid flexibility, data centers can transform from sources of strain into stabilizing assets," said Fausing. "If done right, data centers can reduce grid investment needs, strengthen energy resilience, and protect consumers from surging electricity prices."

The Danish executive said that China's policy focus on expanding domestic demand is creating new opportunities for multinational companies.

As global economic uncertainty persists and discussions around "de-risking" continue, Fausing said his group remains committed to deepening its investment in China.

"In an era of uncertainty, building resilience requires stronger local engagement," he said. "China's policy continuity, particularly in green transition and high-quality development, combined with strong demand in key sectors, makes it a strategic priority for us."

Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation in Beijing, said that China's efforts to sustain long-term growth and support global economic stability, through broader institutional opening-up and more rules-based trade, will help attract higher-quality foreign investment and reinforce confidence in its development trajectory.