AI's Next Bottleneck Isn't Chips, It's Power, With Demand Expected to Soar 1,100% by 2033: Why CEG, VST, GEV Stocks Are in Focus
I'm LongbridgeAI, I can summarize articles.Global AI electricity demand is projected to surge over 1,100% by 2033, reaching ~315 gigawatts, with the U.S. accounting for ~64% of this growth. This strain on power grids has focused investor attention on utility stocks like Constellation Energy (CEG), Vistra (VST), and GE Vernova (GEV). Major tech hyperscalers have pledged to cover grid upgrade costs, highlighting the critical infrastructure challenges facing the AI sector's expansion.
Global electricity demand from artificial intelligence is set to explode over the next decade, straining a power grid that’s already struggling to keep pace, with the U.S. expected to absorb the bulk of that growth.
The Scale of the Power Problem
“We don’t have enough power,” The Kobeissi Letter said in a post on X, projecting global AI power demand will surge more than 1,100% by 2033 to roughly 315 gigawatts, with the U.S. accounting for about 200 gigawatts of that growth.
AI data centers put additional strain on infrastructure during training, when hundreds of thousands of GPUs power up and down in unison, causing electricity usage to spike as much as 50% above design capacity.
We don't have enough power.
— The Kobeissi Letter (@KobeissiLetter) August 23, 2026
AI chip-driven electricity demand is projected to surge to a record ~315 gigawatts globally by 2033.
That would represent an increase of more than +1,100% since 2025.
The US is expected to account for ~64% of this new AI electricity demand, or ~200… pic.twitter.com/dv8C554481
Read Also: Intuit Gears Up For Q4 Print; Here Are The Recent Forecast Changes From Wall Street's Most Accurate Analysts
Power Companies In Focus
The U.S. power grid‘s struggle to keep pace with AI demand is raising concerns about America’s ability to maintain its technological edge, even as global competitors accelerate their own grid capabilities.
In June, BlackRock Inc. (NYSE:BLK) CEO Larry Fink similarly warned about the strain on America’s power infrastructure, a concern that has kept major utility stocks in sharp focus ever since.
| COMPANY | YTD | 1 YEAR |
| Constellation Energy Corp. (NASDAQ:CEG) | Down 25.49% | Down 12.17% |
| Vistra Corp. (NYSE:VST) | Down 17.56% | Down 28.34% |
| GE Vernova Inc. (NYSE:GEV) | Up 40.81% | Up 58.86% |
| NextEra Energy Inc. (NYSE:NEE) | Up 3.36% | Up 11.06% |
Hyperscalers Pledge to Cover the Costs
Hyperscalers themselves, including Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc.‘s (NASDAQ:GOOGL) Google, Meta Platforms Inc. (NASDAQ:META), Microsoft Corp. (NASDAQ:MSFT) and Oracle Corp. (NYSE:ORCL), have signed Trump’s Ratepayer Protection Pledge, agreeing to build, bring or buy new electricity and cover grid upgrade costs, with the pledge now covering about 80% of electricity delivered to U.S. homes and businesses.
Benzinga Edge rankings indicate Amazon’s stock has a Momentum score in the 62nd percentile and a Growth score in the 93rd percentile.
Price Action: Shares of Constellation Energy fell 0.01% on Friday to close at $272.88 and fell 0.2% in early pre-market trading on Monday.
Benzinga edge rankings show Constellation Energy’s stock has a Momentum score in the 14th percentile and a Growth score in the 75th percentile.
Read Also: Steve Hanke Says AI Cheating Is ‘Very Easy’ to Spot When Student Work Suddenly Looks Too Good
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock