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Key Takeaways
- Power demand for data centers is expected to triple by 2030, driven by artificial intelligence (AI), Mizuho Research analysts projected.
- The analysts said electric utilities companies like Constellation Energy, Duke Energy, and NextEra Energy could be poised to benefit, as well as infrastructure providers like Equinix.
- Renewable energy demand is also expected to grow, with First Solar, GE Vernova, and Nextracker among the companies that could gain.
- Natural gas demand is expected to rise in the near term with Chesapeake Energy and EQT well-positioned to benefit from this near-term demand, the analysts said.
Power demand for data centers in the U.S. is expected to triple by 2030, fueled by artificial intelligence (AI) applications, Mizuho Research analysts said.
The rise in demand could drive growth for electric utilities stocks, the analysts said, as well as companies in the renewable energy industry, and more.
Electric Utilities, Renewable Energy Stocks Poised To Benefit
Electric utilities stocks like Constellation Energy (CEG), Duke Energy (DUK), and NextEra Energy (NEE) could be poised to benefit, the analysts said, as well as infrastructure providers like Equinix (EQIX).
The analysts said they expect AI to increase demand for renewables like solar and wind energy as well, given the tech sector’s climate commitments. They added that based on their models, clean energy resources could supply more than half of electricity in the U.S. by 2030, supported by heightened demand driven by AI data centers.
First Solar (FSLR), GE Vernova (GEV), and Nextracker (NXT)Â are among the stocks that could get a boost from this trend, they said.
Natural Gas Demand To Rise in Near Term
The analysts also said natural gas demand is expected to rise in the near term to keep up with the growing power needs of data centers.
They named Chesapeake Energy (CHK) and EQT (EQT) as natural gas stocks that could gain, as well as infrastructure picks including Kinder Morgan (KMI)Â and Williams Companies (WMB).