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.

This is a question of supply and demand, but on steroids. AI doesn’t just need power, it demands it. But if the United States is going to dominate the AI space, there are problems.

Those problems start with an aging electrical grid that isn’t adequate for the nation’s needs without AI.

As noted by Reuters, “some power companies are projecting electricity sales growth several times higher than estimates just months earlier. Nine of the top 10 U.S. electric utilities said data centers were a main source of customer growth, leading many to revise up capital expenditure plans and demand forecasts.”

Goldman Sachs is bullish on the industry, estimating that about 47 gigawatts (GW) of additional power generation capacity will be needed to accommodate growth. 

In addition, as noted by Wells Fargo, after years of flat power growth in the U.S., electricity demand could grow as much as 20% by 2030. Again, because of the AI data center demand.

“AI data centers alone are expected to add about 323 terawatt hours of electricity demand in the U.S. by 2030, according to Wells Fargo. The forecast power demand from AI alone is seven times greater than New York City’s current annual electricity consumption of 48 terawatt hours. Goldman Sachs projects that data centers will represent 8% of total U.S. electricity consumption by the end of the decade,” says CNBC.

When you consider the 24/7, 365-day-a-year demand from AI, you can see that solving the supply side of the equation requires energy in many forms. That being said, investors should seriously consider energy stocks. Here are two attractive options.

Energy Stocks to Buy: PG&E Corporation

PG&E Corp. (NYSE: PCG) is a holding company that engages in the generation, transmission, and distribution of electricity and natural gas. The company 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.

PCG benefits from growing electricity demand in California, which is projected to increase significantly over the next two decades. Its focus on renewable energy sources aligns with the state’s clean energy policies and continued electrification of buildings, transportation and other sectors of the economy. 

PCG stock is down 20.76% in 2025. However, the stock has a consensus price target of $20.55, an upside of over 28%. Plus, like most utilities stocks, investors get a dividend that comes with a dividend yield of 0.63%,

Energy Stocks to Buy: Sempra Energy

Another of the top names in energy stocks is Sempra Energy (NYSE: SRE), Sempra is a leading North American energy infrastructure company focused on delivering energy to nearly 40 million consumers. 

As the owner of one of the largest energy networks on the continent, Sempra is electrifying and enhancing the energy resilience of some of the world’s most significant economic markets, including California, Texas, Mexico, and global energy markets.

There are substantial reasons to buy and hold Sempra for the long term. For one, while we wait for Sempra to push aggressively higher on data center power demand, we can collect its current yield of about 3%.

Two, Goldman Sachs is bullish on the industry, estimating that about 47 gigawatts (GW) of additional power generation capacity will be needed to accommodate growth. All of which is a substantial catalyst for stocks, such as Sempra.

Since April, it has run from about $62 to a high of $89, thanks in part to the explosive energy demand of AI data centers. However, analysts remain bullish on SRE stock and give it a consensus price target of $96.17, which is an 8% increase.

The Bottom Line on the Artificial Energy Boom

AI isn’t just a technology trend, it’s an energy event. The rapid buildout of data centers, cloud infrastructure, and high-density computing is reshaping the U.S. utility landscape and accelerating demand projections for the next decade.

That positions energy stocks like PG&E Corp. and Sempra Energy as strategic investments rather than traditional utility plays. Both are tied directly to the infrastructure, grid modernization and regional expansion required to support round-the-clock AI workloads.

While no investment is without risk, the analyst outlooks, price targets, and macro tailwinds suggest that both stocks could deliver attractive upside as the artificial energy boom plays out. For investors seeking exposure beyond traditional tech winners, energy utilities may be the sector to watch in 2026 and beyond.