AI energy stocks are gaining momentum as artificial intelligence drives an unprecedented surge in electricity demand from data centers. As major technology companies continue investing billions into AI infrastructure, utility and energy companies positioned to supply power to these facilities could become some of the biggest long-term beneficiaries of the AI boom.
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With the artificial intelligence boom showing no signs of slowing, NextEra just announced it was buying Dominion in an all-stock deal that will unite two key players in a race to meet explosively growing demand from AI data centers. NextEra will own about 74.5% of the combined company, while Dominion investors will own about 25.5%.
“Electricity demand is rising faster than it has in decades,” NextEra CEO John Ketchum said in a statement. “We are bringing NextEra Energy and Dominion Energy together because scale matters more than ever.”
Even better, investors could see many more deals like this emerge across the utility and energy sector as companies race to expand capacity and strengthen infrastructure tied to AI-driven electricity demand.
Why AI Data Centers Are Driving Massive Energy Demand
A typical AI data center consumes about 1.75 billion kilowatt-hours of electricity per year. To put that into perspective, the average American home uses about 10,800 kilowatt-hours annually. That means just one single AI data center uses as much electricity as roughly 162,037 American homes.
And with AI giants like Google (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN), Microsoft (NASDAQ: MSFT) and OpenAI planning to build thousands to datacenters in the U.S., more energy will be needed.
According to the International Energy Agency (IEA), by 2030 these AI data centers will demand as much electricity as entire developed nations like Germany or Japan. Plus, according to Goldman Sachs, “global power demand from data centers will increase 50% by 2027 and by as much as 165% by the end of the decade (compared with 2023).”
“Global electricity demand from data centers is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today. The effects will be particularly strong in some countries. For example, in the United States, data centers are on course to account for almost half of the growth in electricity demand; in Japan, more than half; and in Malaysia, as much as one-fifth.”
That growing energy demand is creating opportunities in AI energy stocks.
Sempra Energy Could Benefit From AI Infrastructure Expansion
With a yield of 2.91%, Sempra Energy (NYSE: SRE) is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers.
As owner of one of the largest energy networks on the continent, Sempra is electrifying and improving the energy resilience of some of the world’s most significant economic markets, including California, Texas, Mexico and global energy markets.
PG&E May See Rising Electricity Demand From AI Growth
With a yield of 1.24%, PG&E Corp. (NYSE: PCG) is a holding company that engages in the generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar, and sustainability. It’s also the parent company of Pacific Gas and Electric Company, an energy company that serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California.
Wall Street Believes the AI Boom Is Still in Its Early Stages
Warnings of an “AI bubble” are increasingly being dismissed by top Wall Street analysts.
Goldman Sachs says it believes the AI story is still in its early innings and that current investments may eventually look small compared to the long-term economic benefits AI could generate. According to the firm, AI adoption could add as much as $20 trillion to the U.S. economy over time.
JPMorgan’s Mary Callahan Erdoes also recently stated:
“AI itself is not a bubble. That’s a crazy concept… We are on the precipice of a major, major revolution in the way companies operate,” according to CNBC.
As AI adoption accelerates across industries, demand for power generation, grid expansion, and energy infrastructure could continue growing for years.
AI Energy Stocks Could Become Long-Term Winners of the Data Center Boom
The rapid expansion of AI data centers is creating one of the largest energy demand growth stories the market has seen in decades.
As technology companies continue to build AI infrastructure at an aggressive pace, utilities and energy providers well positioned to support rising electricity consumption could benefit from sustained demand growth over the years. Companies like Sempra Energy and PG&E offer investors exposure to the growing AI energy boom through critical infrastructure assets and expanding electricity networks. For long-term investors, AI energy stocks may represent an overlooked way to participate in the continued growth of artificial intelligence and data center expansion.
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