As Big Tech's power demand surges, data -2-

Utilities with contracted data center customers in high-growth corridors are being repriced from regulated infrastructure to strategic AI assets, driven by surging Big Tech power demand. The NextEra/Dominion deal sets a new benchmark for this valuation shift. Investors face near-term opportunities in these utilities, while long-term questions focus on the extent of integration and ownership control over power infrastructure.

For investors, the near-term trade is more straightforward. Utilities with large, contracted data center customer bases in high-growth corridors are being repriced from regulated infrastructure to strategic AI assets. The NextEra/Dominion deal sets a new benchmark for that repricing. The more interesting longer-term question is how far the integration goes, and who ends up owning the on/off switch.

More: Meet the Nvidias of power - 5 stocks winning Big Tech's $700 billion AI energy grab

Also read: The anti-AI movement gains a powerful ally: The pope

-Jurica Dujmovic

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05-30-26 1456ET