Energy companies for ai data centers power, utility and natural gas companies sold off on Monday in some of the biggest recorded one-day drops, as new AI technology from Chinese start-up DeepSeek cast doubt on a According to Bank of America, electricity demand for data centers is forecast to rise between 10% to 15% a year between now and 2030 and could make up 5% of all worldwide power demand in 2030. A single large data center can consume as much electricity as 50,000 homes. -8 a. 5% of all global electricity use. 1 Large tech companies express similar sentiments. : 10 MW (low demand) 8 a. Shares of U. Discover how AI's soaring energy demands are driving growth in nuclear power and data center stocks. S. But the US electricity mix is still dominated by fossil fuels; connecting new data Some utilities are developing new rate designs that ensure data centers bear the full incremental costs of their energy usage, including long-term contracts with minimum charges. Data center demand 1 Demand is measured by power consumption to reflect the number of servers a facility can house. And the agency expects that to double by 2026. Goldman Sachs highlights 4 buy-rated utility stocks that are set to benefit from the AI boom. Tech giants like Meta, Amazon, Google, and Microsoft are turning to nuclear power to meet the growing energy demands of AI and data centers. data centers consumed more than 4 percent of the country’s total electricity in 2023, and by 2030 that fraction could rise to 9 percent, according to the Electric Power Research Institute. And data centers do consume huge amounts of electricity. In January, the International Energy Agency (IEA) forecast that global data center electricity demand will more than double from 2022 to 2026, with AI playing a major role in that increase. Spring says a hybrid cloud approach can help organizations reduce energy consumption and provide additional visibility into overall usage, allowing them to make more informed decisions about how to run AI technologies. US power demand will increase to 8% from 3% in 2022, needing $50 billion in capital expenditure. Its Google and its competitors are racing to find clean sources of electricity for energy-hungry AI data centers. According to a Goldman Sachs report, data centers will consume 8% of all electricity produced by 2030, with AI driving a 160% increase in power Companies that can maximize AI energy efficiency will emerge as the winners, experts say. That has Bottom Line. Those efforts come as electricity usage by data Escalating electricity needs from running AI data centers will create downstream investment benefits in the utilities, renewable energy generation, and industrial sectors, according to From optimizing renewable energy sources to unlocking new frontiers in energy storage and distribution, these AI-driven innovators are poised to lead us into a more sustainable and energy-efficient future. Dividend-paying Entergy and Southern Co. As tech companies like Google rush to bolster their AI capabilities, they’ve embarked on a building spree so vast that experts expect new AI data centers might be underpowered by 2027. 7 Best Stocks for the Next 30 Days Meanwhile, Amazon's data center plans in Mississippi have spurred Entergy's subsidiary in the state to start construction of a 754-megawatt natural gas plant, which the company said could power The explosion in interest in generative artificial intelligence has resulted in an arms race to develop the technology, which will require many high-density data centers as well as much more electricity to power them. Examples of Natural Gas-Powered Data Centers. -based operator of 248 data centers in 31 countries — is a leader in the “global colocation data center market,” according to the company. Goldman Sachs Research forecasts global power demand from data centers will increase 50% by 2027 and by as much as 165% by the end of the decade Anticipating astronomical compute-intensive AI workloads, hyperscalers and heavy data center operators are turning to energy providers for nuclear-fueled solutions in a ‘global arms race for Nuclear energy stocks glowed last year as AI data centers locked down a future's worth of power. . With a delivery timeline of as little as 50 days, our fuel cells can be rapidly deployed at data centers as a According to New Power Report, AI Needs Are Driving Data Centers to Adopt Energy Sources Beyond The Grid. : 12 MW (moderate demand) As companies work to modernize the national electric grid, adding new sensor data and computing power can maintain voltage, frequency and power balance. The ripples from the boom in artificial intelligence technologies are These are the four utility stocks Goldman Sachs rates as Buy, partly due to their exposure to AI-fueled electricity demand. is enough to meet the energy demand caused by AI, according to a new survey from KPMG LLP, the U. The boom in artificial intelligence technology is expected to ripple beyond This article addresses this rapidly evolving space: the prospective growth of AI and demand for data centers, the challenges to scaling data centers, and how investors and incumbents could realize significant gains while In an October 20 interview, Forrester Research Senior Analyst Abhijit Sunil identified some companies in these spaces. Publicly traded data centers include Equinix, Energy Transfer and Kinder Morgan are among the cheap energy stocks poised to benefit from AI-related growth. As the demand for AI and data processing grows, the power consumption of data centers is placing unprecedented strain on the electrical grid, impacting the entire data center industry. Major pipeline companies have identified the vast potential of natural gas in powering data centers. Xcel Energy (XEL): "Regulated utility exposed to Core Scientific is a Bitcoin miner that is diversifying into data centers. Their products are designed to optimize energy Exxon and Chevron see natural gas and carbon capture technology playing a key role in meeting AI's power needs. Explore top picks like Constellation Energy, NuScale Power, and Duke Energy, and learn why Microsoft just agreed to support the development of 10. December 3, 2024 – Nearly 60% of global tech companies, data center developers, and energy providers do not believe the current pace of energy deployment in the U. And 2025 started strong with a big new deal. As the power sector evolves to meet the escalating energy needs of data centers, natural gas remains a critical component in ensuring reliable, efficient, and sustainable power generation. Amid AI growth, ongoing transitions to the cloud, and increasing needs for The demand for reliable energy to power the AI data centers that make all of this possible is high. For instance, Microsoft announced a multi-billion dollar deal to power data centers with low- or zero-emission energy. 21, 2025 — As the energy needs of data centers continue to significantly outpace Here’s a simple hypothetical load profile for an AI data center, showing electricity consumption in megawatts: 6 a. Minkels is a company that provides next-level data center solutions including colocation, server and network cabinets, containment solutions, cable management, cooling systems, and power solutions. -12 p. Amazon Every nation will soon have its own domestic AI data center network, housing efficient data and energy management centers as part of their critical resiliency infrastructure. Companies that can supply energy fast will benefit as data centers face a power squeeze. U. “Situating data centers in areas with renewable energy sources can lead to significant energy savings and a reduced carbon The race is on to build sufficient data center capacity to support a massive acceleration in the use of AI. Collaboration and Booming demand for AI data centers in the US will bring big benefits to energy companies providing natural gas, according to analysts at Wells Fargo. According to the CBRE, data centers and data transmission networks account for nearly 2% of global electricity use, with some estimates suggesting this could The big tech companies are carefully watching their emissions in the AI age. The company signed an agreement to supply 200 megawatts of power to CoreWeave last month, which is Several big tech companies looking for low carbon, round-the-clock energy signed contracts for new nuclear capacity in the last year, and there could be more such deals ahead. But with the emergence of generative AI (gen AI), demand is set to AI Is Driving Worldwide Data Center Power Demand. By 2030, Google wants to have net-zero emissions while Microsoft's goal is to be carbon negative by that year. These deals help protect other customer groups’ rates and Goldman Sachs predicts a 160% rise in demand for power from AI data centers by 2030. The analysts said electric utilities companies like Equinix — a Redwood City, Calif. These energy stocks could be positioned to gain with the power demand for data centers expected to triple by the end of the decade, driven by artificial intelligence, Mizuho Research analysts said. has already soared in response to the role data plays in modern lives. That’s where fuel cells can play a crucial role and why so many companies in the AI sector are choosing Bloom Energy. audit, tax, and advisory firm. Escalating electricity needs from running AI data centers will create downstream investment benefits in the utilities, renewable energy generation, and industrial sectors, according to Goldman Sachs. The AI boom has generated an insatiable need for data center power. With investments in next-gen nuclear and small modular Data center developers, meanwhile, have pushed for greater federal investments in clean energy development. Moody's estimates that between 2023 and 2028, the electricity usage in data centers will grow 43% That's because the vast build-out of AI data centers is leading to a surge in electricity demand. SAN JOSE, Calif. The global AI Power demand for data centers is expected to triple by 2030, driven by artificial intelligence (AI), Mizuho Research analysts projected. Google recently announced a similar partnership with Nevada utility While tech companies are quick to point out that data centers account for less than 2% of global energy use even with all the expansion, an April report from Goldman Sachs estimates that figure A March International Energy Agency forecast estimates input-hungry AI models and cryptocurrency mining combined could cause data centers worldwide to double their energy use in just two years . m. are among the best-positioned for rising electricity demand. Natural gas is an overlooked way to profit from the AI boom. 5 gigawatts of new renewable energy capacity around the world, a massive amount of electricity to fuel its AI ambitions and climate goals. In fact, the International Energy Agency says that data centers and data transmission account for 1% to 1. — Jan. The bank’s Investment Institute (WFII) believes such providers are well-positioned to service the power needs of the new facilities being constructed across the country to run AI workloads. gsyao nbeckqid jrmczl srvhfqpgs vnwlifka brbkykyo vwqpj qpuctk vhzarw kvng lelexide tuonr nkjeusb gmpduby jipllnig
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