--- title: "The Hidden Winners of the AI Power Crunch: 3 Utilities to Watch" type: "News" locale: "en" url: "https://longbridge.com/en/news/295219310.md" description: "AI-driven energy demand is creating a power crunch, benefiting utility stocks with large regional footprints. Constellation Energy (CEG) leverages its U.S. nuclear capacity and deals with Microsoft and Meta. Vistra (VST) offers diverse generation assets and partnerships with Meta and Helix Investments. NextEra Energy (NEE) provides stability through regulated operations while capturing AI upside. These utilities are positioned as hidden winners in the infrastructure boom." datetime: "2026-08-07T10:31:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/295219310.md) - [en](https://longbridge.com/en/news/295219310.md) - [zh-HK](https://longbridge.com/zh-HK/news/295219310.md) generator: "portal-rs" --- # The Hidden Winners of the AI Power Crunch: 3 Utilities to Watch The explosive growth in artificial intelligence (AI) is creating a historic boom in energy demand. Unlike traditional cloud workloads, which required about 5 kilowatts (kW) to 10 kW per server rack, modern AI hardware with high-density GPU clusters requires anywhere from 20 kW to up to 100 kW per rack. The AI boom has a surprising bottleneck, and it's not chips, models, or cloud capacity, but the electricity required to keep the whole thing running. Grid operators across several key regions are seeing multiyear backlogs for interconnection permits and power equipment. In Northern Virginia, which is known as "data center alley," data centers already consume roughly 26% of all electricity generated in the state. For investors, utility operators with large footprints in key regions could be hidden winners from the booming AI infrastructure. Here are three utility stocks that you should be watching closely amid this historic power crunch. ![Two engineers walking alongside a large solar panel during a sunny day.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODA4NzAvdHdvLWVuZ2luZWVycy13YWxrLWRvd24tYS1kaXJ0LXBhdGgtYWxvbmdzaWRlLXNvbGFyLXBhbmVscy1nZXR0eS5qcGcmdz0zODQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. ## Constellation Energy boasts the largest nuclear power capacity in the U.S. **Constellation Energy** (CEG -1.52%) operates as an independent power producer and boasts 22 gigawatts (GW) of nuclear capacity, making it the largest commercial operator of nuclear power in the U.S. A large chunk of Constellation's power generation is located in the PJM Interconnection region, which serves 67 million customers from Illinois to New Jersey, including data center alley. This geographic advantage was important when it entered into a 20-year power purchase agreement (PPA) with **Microsoft** in 2024. As part of the deal, Constellation is restarting Unit 1 at Three Mile Island (which has an 835 MW capacity) to supply nuclear power to the hyperscaler. It also entered a similar 20-year PPA with **Meta Platforms** to provide energy from its Clinton Clean Energy Center in Illinois. Expand ![Constellation Energy Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0NFRy5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: CEG Constellation Energy Today's Change (-1.52%) $-4.02 Current Price $261.10 ### Key Data Points Market Cap $94BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $260.68 - $280.00 52wk Range $228.63 - $412.70 Volume 5K Avg Vol 3.7M Gross Margin 13.18% Dividend Yield 0.62% Constellation is appealing because of its large nuclear footprint. That's because nuclear energy provides highly reliable baseload power, which is crucial for hyperscalers seeking uninterrupted, clean energy to meet zero-emissions goals. It also diversified its portfolio through its $26.6 billion acquisition of Calpine, adding over 27 gigawatts of natural gas and geothermal capacity to its fleet in high-demand markets. Investing in Constellation isn't without risk. Because it operates as a wholesale merchant power producer, the company is vulnerable to regulatory interventions. For example, some consumer advocates have criticized behind-the-meter data center co-location at nuclear plants, arguing it bypasses the grid and shifts grid maintenance costs onto residential consumers. That said, the stock has declined 35% from its 52-week high and is priced at around 20 times next year's forward earnings. With analysts pricing in 22% compound annual growth in earnings per share over the next three years, Constellation is a top utility provider to consider scooping up today. ## Vistra manages a massive fleet of natural gas, nuclear, and an expanding renewable footprint **Vistra Corporation** (VST +0.57%) is another major independent power producer, with about 44,000 megawatts of total capacity. Like Constellation, the company operates a merchant power business model selling electricity directly into competitive wholesale markets across 18 states. The company has a diverse energy portfolio comprising natural gas, the second-largest nuclear fleet in the country, along with power from coal, solar, and battery storage. Expand ![Vistra Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL1ZTVC5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: VST Vistra Today's Change (0.57%) $0.80 Current Price $141.38 ### Key Data Points Market Cap $48BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $140.14 - $143.02 52wk Range $132.66 - $219.82 Volume 76.1K Avg Vol 4.9M Gross Margin 14.65% Dividend Yield 0.64% Early this year, Vistra entered into a 20-year PPA with Meta Platforms for 2,600 MW of power from three of its nuclear plants in the PJM region. The company is also leveraging its legacy coal and brownfield sites to host solar and battery assets linked to **Amazon** (200 MW Oak Hill solar facility in Texas) and Microsoft (the 405 MW Pulaski solar facility in Illinois). Vistra has also emerged as the preferred power provider for Helix Investments, a new company formed with **KKR**, the Kuwait Investment Authority, and **Nvidia**. With over $10 billion in capital commitments, Helix aims to build data centers and integrated infrastructure to meet surging AI demand. Like Constellation, Vistra is exposed to regulatory risks and price caps in regions like PJM. That said, the historic power crunch also favors Vistra, with analysts projecting robust growth for it over the next several years. ## NextEra benefits from AI upside while offering stability as a regulated utility provider **NextEra Energy** (NEE -1.52%) is another appealing stock in the utility sector, with its business split between Florida Power and Light, the largest regulated utility in the United States, and NextEra Energy Resources, the world's largest producer of wind and solar power. The company has become a key partner for large-scale renewable energy build-outs and boasts a record 35.1 GW renewable and storage pipeline. The company is also deploying utility-scale battery storage capacity to complement solar arrays, helping smooth out intermittent solar power so hyperscalers can reliably run compute clusters while limiting their carbon footprints. Expand ![NextEra Energy Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL05FRS5wbmcmdz0xMjg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NYSE: NEE NextEra Energy Today's Change (-1.52%) $-1.31 Current Price $84.60 ### Key Data Points Market Cap $176BMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $83.94 - $86.88 52wk Range $69.24 - $98.75 Volume 1.1K Avg Vol 12M Gross Margin 35.80% Dividend Yield 2.81% The company also recently partnered with **Brookfield Asset Management** and the U.S. Department of Energy on a $100 billion AI data center campus in western Kentucky. As part of this, NextEra is expected to build and own 2 GW of natural-gas generation capacity and up to 2.6 GW of battery storage. NextEra balances the growth in AI-driven power demand with the stability of a regulated utility provider and has a stellar 32-year track record of raising its dividend payout. For investors seeking a more stable utility stock, NextEra offers a lower-volatility play than merchant power producers like Constellation and Vistra. ### Related Stocks - [CEG.US](https://longbridge.com/en/quote/CEG.US.md) - [VST.US](https://longbridge.com/en/quote/VST.US.md) - [NEE.US](https://longbridge.com/en/quote/NEE.US.md) - [VSTL.US](https://longbridge.com/en/quote/VSTL.US.md) - [CEGX.US](https://longbridge.com/en/quote/CEGX.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [JXI.US](https://longbridge.com/en/quote/JXI.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [DAT.US](https://longbridge.com/en/quote/DAT.US.md) - [XLU.US](https://longbridge.com/en/quote/XLU.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md) - [XDAT.US](https://longbridge.com/en/quote/XDAT.US.md) - [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md) - [MSFW.US](https://longbridge.com/en/quote/MSFW.US.md) - [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [KKR.US](https://longbridge.com/en/quote/KKR.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [KKRS.US](https://longbridge.com/en/quote/KKRS.US.md) - [KKR-D.US](https://longbridge.com/en/quote/KKR-D.US.md) - [KKRT.US](https://longbridge.com/en/quote/KKRT.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Nvidia Chip-Filled Data Centers Need More Power Than Any Utility Can Promise. Here's Who Actually Wins.](https://longbridge.com/en/news/296453760.md) - [Mivtachim The Workers Social Insurance Fund Ltd. Under Special Management Buys New Position in Vistra Corp. $VST](https://longbridge.com/en/news/296021740.md) - [Johnson Investment Counsel Inc. Has $28.77 Million Holdings in NextEra Energy, Inc. $NEE](https://longbridge.com/en/news/296019261.md) - [First National Trust Co Sells 21,334 Shares of NextEra Energy, Inc. $NEE](https://longbridge.com/en/news/296582712.md) - [IREN Just Passed Its Biggest AI Test as Microsoft and Nvidia Bet Billions](https://longbridge.com/en/news/296533962.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**