“`html
Core News Facts
AI data centers are significantly increasing electricity demand, prompting several utilities to capitalize on this surge. For instance, the State Street Utilities Select Sector ETF has risen nearly 10% this year. Constellation Energy’s share price surged almost 50% as it signed long-term power purchase agreements with Microsoft and Meta Platforms to support their data centers.
In early 2024, Constellation Energy entered a $26.6 billion deal to acquire Calpine, enhancing its energy capacities with natural gas and geothermal assets. Concurrently, Dominion Energy is planning to invest $50 billion through 2029, mainly in Virginia, to meet projected power demand growth driven by data centers, with expectations of earnings growth between 5% and 7% annually.
NextEra Energy’s stock increased nearly 11% over the past year due to its leading position in Florida’s electric utility and clean energy development. The company aims for earnings growth at the high end of its 6% to 8% target range, supported by a recent 25-year power deal with Google to revitalize the Duane Arnold Energy Center by 2029.
“`
