Canadian Stocks Poised for Growth as AI Demand Drives Up Electricity Consumption
The rapid growth of artificial intelligence (AI) and data centers is driving up electricity demand.
According to the International Energy Agency, global data center electricity consumption is expected to rise from 485 terawatt-hours in 2025 to 950 TWh by 2030, with AI-focused facilities potentially tripling their electricity use over the same period.
The supply of gas turbines and transformers is already tightening, but two Canadian companies are well-positioned to benefit from this trend. Tourmaline Oil (TSX: TOU), Canada's largest natural gas producer, has a significant advantage in supplying dependable electricity to data centers. The company generated $786 million in cash flow during the second quarter and has a conservative balance sheet.
Tourmaline is not just relying on AI-related demand; it also expects rising liquefied natural gas (LNG) exports, industrial demand, heating, and electricity generation to strengthen long-term North American gas pricing. The company's scale and low-cost drilling inventory make it an attractive investment option.
Apart from Tourmaline, Hammond Power Solutions (TSX: HPS.A), which manufactures dry-type transformers and power-quality equipment, is also poised for growth. Demand has surged 44.7% year-over-year to a record $324.8 million in the second quarter, with management pointing to U.S. data-center investment, electrification, and power-infrastructure spending.