Daqo New Energy Corp. (NYSE: DQ) announced its subsidiary Daqo Energy Technology (Shanghai) Co., Ltd. signed an investment agreement with the Management Committee of the Kunshan Economic and Technological Development Zone to establish a manufacturing base for energy solutions targeting artificial intelligence data centers.

The facility will focus on research, development, manufacturing, and sale of energy storage systems, solid-state transformers, solid-state circuit breakers, and solid-state batteries for AI data centers. The project will be constructed in two phases, with Phase 1 requiring approximately RMB 2.1 billion in investment. The total project investment is expected to reach approximately RMB 6 billion, according to the company's statement.

Phase 2 will begin at a later date, subject to meeting relevant industrial policy and investment requirements. The company noted that as the project remains in preparatory stages, the impact on future performance cannot be determined.

"We are excited to launch this strategic expansion into next-generation energy solutions for AIDCs. The rapid growth of AIDCs is creating substantial demand for sophisticated energy solutions," said Xiang Xu, CEO of Daqo New Energy.

Daqo New Energy is a manufacturer of high-purity polysilicon for the solar photovoltaic industry. Founded in 2007, the company has a total polysilicon nameplate capacity of 305,000 metric tons and supplies photovoltaic product manufacturers who process the polysilicon into solar power components.

The information is based on a company press release statement.