Energy Stocks Power Up as AI-Driven Data Centers Drive Demand

Energy stocks are transforming into AI growth plays as data centers surge in demand.

Data center power usage is projected to increase from 540 kWh per capita in 2024 to 1,200 kWh by 2030, according to the International Energy Agency.

Hyperscalers like Meta Platforms and Amazon Web Services are investing heavily in data centers, but these facilities face a major bottleneck: energy. Developing grid infrastructure can take four to ten years or longer than building a data center itself.

Constellation Energy and Vistra Energy have secured multi-decade power purchase agreements with tech giants like Microsoft and Meta Platforms. These agreements provide stable revenue for the utilities, which are positioning themselves as key players in the AI-driven capex boom.