China has begun building the world’s largest hydropower dam in Tibet, launching a massive $167 billion infrastructure push that has already jolted markets. The announcement, made by Premier Li Qiang on Saturday, immediately triggered a sharp rally in hydropower and infrastructure-related stocks.

The project, located on the lower reaches of the Yarlung Tsangpo River—known as the Brahmaputra further downstream—will feature five cascade hydropower stations with a projected annual output of 300,000 gigawatt-hours. That’s triple the capacity of the current Three Gorges Dam and five times the investment.

Trading resumed Monday with double-digit gains in companies like Power Construction Corporation of China, Dongfang Electric, and Huaxin Cement. Analysts, including Citigroup’s Pierre Lau, see this as a game-changing boost to China’s economy and clean energy ambitions.

Beyond the 1.2 trillion yuan earmarked for dam construction, an additional 768 billion yuan is expected to go into power grid expansion—benefiting manufacturers such as Sieyuan Electric and Pinggao Group.

The project aligns with China’s broader carbon neutrality targets: peaking emissions by 2030 and hitting net-zero by 2060. As the world’s top hydropower producer, China added 14.4 GW of new capacity last year alone and is set to surpass its 2030 pumped storage target of 120 GW.

Still, some experts urge caution. Concerns loom over long construction timelines and regional tensions, particularly in downstream nations like India. Environmental oversight and transboundary water management remain crucial as construction advances.