Artificial intelligence (AI) data centers are popping up everywhere, to the point where it’s becoming a source of political backlash.
Yet while the debate over where to build data centers rages on, one thing remains very certain
As AI data centers proliferate, electricity demand will continue to rise as well. While this trend could bode well for utility stocks across the board, it could serve as a strong long-term catalyst for the following three electric utility stocks in particular: Constellation Energy Group (NASDAQ: CEG), Entergy (NYSE: ETR), and NextEra Energy (NYSE: NEE). Constellation Energy: Melting up on AI growth Spun off from utilities giant Exelon in 2022, Constellation Energy Group provides electricity and natural gas to a variety of customers, including regulated utility companies.
What makes Constellation especially interesting is its high exposure to nuclear power. That is, the company owns and operates 15 nuclear power plants, primarily in the Midwest and Mid-Atlantic. In the past, nuclear power has been a controversial industry, but in recent years, public and private stakeholders have recognized nuclear power’s value as a scalable, low-carbon energy source, with nuclear power plants a viable “green” alternative to coal- and natural gas-fired power plants.