**AI Energy Demand Fuels Opportunities in Power Sector**
Energy companies are poised for growth as artificial intelligence (AI) significantly increases electricity demand. Currently, data centers consume 4.4% of the total electricity generated in the U.S., a figure projected to rise dramatically; by 2028, AI could consume the equivalent energy of 22% of U.S. households. Constellation Energy, the largest nuclear power producer in the U.S., and NextEra Energy, a major green energy provider, have both secured long-term partnerships with tech giants Microsoft and Alphabet, respectively, solidifying their positions amid rising energy needs.
In particular, Constellation’s deal to revive the Three Mile Island nuclear plant will supply Microsoft with 835 megawatts over 20 years, boosting its earnings growth rate to 10-13% through 2030. Similarly, NextEra’s partnership aims to bring Iowa’s Duane Arnold Energy Center back online for its data center operations, underpinning an expected earnings growth rate of 8% through 2035. Duke Energy, strategically located between Virginia and Georgia—both key states for data center construction—features nearly 3,000 new data centers being established nationwide and anticipates a 153% increase in energy demand in Virginia by 2040.
